Foreign Direct Investment
(FDI : Foreign Direct Investment)
Foreign direct investment means that a foreigner acquires stocks or shares of a domestic company for the purpose of establishing a continuous economic relationship,
including participation in management and technical cooperation
Acquisition of shares or stocks of a domestic company
Acquisition of new shares : Greenfield
Establishment of corporation or factory ▶ investing foreign production facilities, technology, know-how, etc.
Acquisition of existing stock : M & A
Foreign investors buy existing domestic corporations ▶ replacement of owners, application of advanced management technologies, etc.