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Foreign Direct Investment & Procedure

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.
Donating fund for non-profit corporation

It's required that foreigners' capital investment over 50 million won + Over 10% of the total capital investment + Foreign-invested-company possesses independent research facilities in the field of science and technology.

Long-term loan

Regarded as a foreign direct investment when a company in which foreign investors have invested capital extends a loan to the foreign-invested company over more than five years.


하단에 내용 참고 바랍니다. 하단에 내용 참고 바랍니다.
Investments over 100 million won + Holding over 10% of total voting stocks or total investment ※ Exceptions to investment ratio: When a foreigner is dispatched or appointed to a domestic company
  • Foreign Investment Promotion Act, Enforcement Decree, and Enforcement Rule View Details
  • Regulation on Foreign Investment View Details
  • Tax Reduction Regulation on Foreign Investment, etc. View Details
  • Restriction of Special Taxation Act, Enforcement Decree, and Enforcement Rules View Details
  • Integrated Notification of Foreign Investment
    View Details


  • 01. Foreign Investment Notification (KOTRA or foreign currency exchange bank)
  • 02. Investment funds remittance (banks available for foreign currency exchange)
  • 03. Payments of stocks (banks available for foreign currency exchange)
  • 04. Registration of incorporation (Court registry office)
  • 05. Transfer of investment fund to corporate account (banks available for foreign currency exchange)
  • 06. Register as a foreign-invested company (first reporting agency)