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Foreign investment procedures mainly consist of the following: foreign investment notification, remittance of investment funds, registration of incorporation and business registration, and registration of foreign-invested company. The procedures applied to foreigners are basically the same as those applied to Koreans with the exception of two additional steps: foreign investment notification and registration of foreign-invested company. Where a foreign investor registers a privately-owned business, ‘registration of incorporation’ is not required.

■ Foreign Investment Notification

A foreign investor may notify foreign investment as follows:

  • Notifying person: A foreign investor or his/her agent (A power-of-attorney should be attached in the case of notification by an agent.)
  • Where to notify: Headquarters and branches of domestic banks, domestic branches of delegated foreign banks, KOTRA, or KOTRA’s overseas offices
  • Processing period: On the spot (The certificate of completion of notification is issued without delay.)

Foreign investment notification is classified into pre-notification - notification prior to the acquisition of stocks - and post-notification - notification after the acquisition of stocks or the conclusion of a contract. The details are as follows:

■ Required Documents

Two copies of the foreign investment notification form per investment type (new stocks, existing stocks, long-term loans etc.)

Documents certifying a foreigner's nationality

- A foreign corporation or group: Certificate of incorporation issued by the government or other authorized organizations of the foreign country, or proof that the said corporation or group is based in the said country

- Foreign individuals: Certificate of citizenship, passport, or other proof of a foreign investor's nationality, issued by the government or other authorized organizations of the foreign country

- In case where a foreign investor holds the nationality of the Republic of Korea, the above documents can be replaced by a certificate of evidence of resident status issued by the government or other authorized organizations of the country where he/she stays, or certificate of overseas residence, etc. issued by embassies and legations abroad of the Republic of Korea Additional documents required when necessary

<Additional documents required when necessary >

  • Documents certifying object of investment
  • Documents certifying share acquisition
  • Letter of attorney (where an agent, a foreign investor confers the right of representation, reports the investment and applies for permission)