In the laws related to the free economic zone and free trade zone, the regulations of Foreign Investment Promotion Act shall be applied to the concepts of the foreigner and the foreign investment
IForeigner (Article 2 of Foreign Investment Promotion Act and Article 2 of Enforcement Ordinance)
Individual having foreign nationality
Company established by the laws of foreign countries (foreign company)
Organization of international economic cooperation
Acting institutions of external economic cooperation affairs of foreign government
International organization dealing with the affairs on the development financing such as IBRD, IFC, ADB, etc.
International organization dealing with or acting external investment affairs
Individual having the nationality of Republic of Korea who resides in foreign country
Refers to the company invested by the foreign investors
Administrator of the foreign-investment environment improvement facilities
Those who manage the facilities to improve the foreign-investment environment such as foreign school, medical institution, residence, business incubation center for foreign investors, etc.
Type of Foreign-Investment
Acquisition of domestic companies' stock or equity
In case that the foreign-investment is more than 0.1 billion won and possesses 30% or more of the total number of the stocks having voting right or total investment amount
⇒ When 2 or more foreigners invest, each one should meet the requirement
The exception for the investment amount shall not acknowledged but the exception on the investment proportion shall be acknowledged.
⇒ In case of entering into any of following contracts, it will be acknowledged as direct investment of the foreigners although the foreign-investment is less than 0.1 billion won or the proportion of foreign investment is less than 30%
Contract that the foreigner can send the executive or appoint the executive
Contract that sells the raw materials or products or purchase during the period more than 1 year
Contract that provides or introduces the technologies or for the joint research and development
5 or more years of loan provided to relevant foreign-investment company by the company having investment relationship with the overseas parent company of relevant foreign-investment company, holding total stocks or 50% or more of the total investment amount of the parent company
Investment to the non-profitable corporation
The corporation equipped with independent research facilities in the science and technology fields having more than 5 permanent employees who have 3 years of research career or more having bachelor degree or the degree of master or higher in the science and technology fields, etc.
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