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Investment Support

Definition of Foreign Investment
  1. 홈
Definition of Foreign Investment
Regarding laws governing free economic zones and free trade zones, the terms foreigners and foreign corporations are subject to the provisions of the Foreign Investment Promotion Act.
Foreigners (Article 2 of the Foreign Investment Promotion Act and Article 2 of the Enforcement Order)
  • Individuals of foreign nationality
  • Corporations established under the laws of a foreign country (foreign corporation)
  • International Cooperation Agency
    • A. Foreign Economic Cooperation Agency under Foreign Governments
    • B. International organizations that are involved with development financing such as IBRD, IFC, ADB, etc.
    • C. International organizations that manage or represent foreign investment entities
  • A citizen of the Republic of Korea who has obtained permanent residency in a foreign country
Types of Foreign Investment
Foreigners (Article 2 of the Foreign Investment Promotion Act, Article 2 of the Enforcement Decree)
  • Acquisition of stocks or equities of local Korean companies
    • If the amount of foreign investment exceeds 100 million won or the investment ratio is more than 10% of the total number of voting rights or the total amount of investment (foreigners must meet the conditions for investing with two or more people)
    • Exceptions to the investment amount are not granted, but exceptions are granted for the foreign investment ratio (if one of the following contracts is signed, even if the foreign investment amount is more than 100 million won or the foreign investment ratio is less than 30%, it will be recognized as a foreign direct investment)

      * Contracts for the appointment of executives or the dispatch of executives
      * Contracts for the delivery or purchase of raw materials or products for a period of more than one year
      * Provision presenting new technologies or a joint R&D contract

  • Long-term Loans
    • A loan of more than 5 years granted to a foreign-invested company by the overseas parent company and a company with a capital investment relationship, owning more than 50/100 of the total number of shares or investment of the foreign-invested company
  • Investments in non-profit organizations
    • It must be equipped with Independent research facilities in the field of science and technology, must have at least 5 full-time staff with the following qualifications: hold a bachelor's degree in the field of science and technology with more than 3 years of research experience, or have a master's degree or higher in science and technology