Gwangyang Bay Area Free Economic Zone Authority

Procedure of Foreign Investment

1. Foreign Investment Declaration

   invest KOREA(KOTRA).Foreign exchange bank
2. Remit investment amount

   Foreign exchange bank, Hand-carried to customs
3. Register the foundation of corporation

   court Registry Office
4. Declare the establishment of corporatopn and regis-ter the business

   Tax office having jurisdiction of head office location
5. Transfer the paid-in capi-tal to the account of corporation

   Foreign exchange bank
6. Register foreign-investment company

   Institution to which the invest-ment was declared initially

※ In case of registering as individual business, the procedure of 'registry of corporation establishment' is not needed.

Foreign Investment Declaration

• Declarant: Declare by the foreign investor personally or by representative
• Institution to be declared: Head office or branch of domestic bank, domestic branch of foreign bank, Invest KOREA (KOTRA) or domestic office of KOTRA, overseas investment KOTRA office.
• Processing Period: Immediate (Issue declaration certificate) Preliminary or post declaration
• 사전신고 및 사후신고

  사전신고 및 사후신고

  Description	Item to be declared	Remark
  Preliminary Declaration	Declare the foreign investment by the acquisition of new stock or investment methods or declare the change of the investment contents
  	Declare the foreign investment by the acquisition of existing stock or investment methods or declare the change of the investment contents	Exception: In case of acquiring the stocks of the listed company, within 30 days after acquisition
  	Declare the foreign investment in the form of long-term load or declare the change of the investment contents
  Declare the acquisition of stock, etc. by the merger, etc.	Declare the acquisition of stock, etc. by the merger, etc. Acquire by the capital increase without consideration of foreign investment company such as reserve fund, revaluation reserve, etc. Acquire by merger, split off, inclusive share exchange or transfer, etc Invest the fruit (dividend) generated from acquired stocks Acquire by purchase, inheritance, bequest, gift, etc Acquire CB, EB, or transfer, exchange, receive or acquired DR	Within 30 days from the date of acquisition
  	Transfer declaration of the stock, etc	Within 30 days from the date of contract
  	Declare the reduction of stock, etc.	within 30days from expiry date of the period of peremptory notice
  	Register, register the changes, apply the cancelation of the register	Within 30 days from the date occurred the cause

Post Management of Foreign Investment

Register the Changes in Foreign Investment Company

• Foreign Investor (Representive) or the foreign investment company shall register the changes to the relevant institution within 30 days from the date occurred the relevant cause when falls any of following events
  • When acquiring the stocks by the merger, etc. (When acquiring the stocks by the merger, capital increase without consideration, etc)
  • When changing the proportion of investment or the equity possessed by the foreign investor's transfer of the stock or decrease of capital
  • When changing the foereign investor's equity possessed or the proportion of the investment by the capital increase of domestic investor
  • When the trade name, company name of the foreign investment company or the nationality of the foreign investor may be changed
  • When the registered contents may be changed such as foreign investment amount, proportion of investment, the address of the foreign investment company, etc

Declare the transfer of the stock, etc or the decrease of capital

• The foreign investor (or the representative) who transfers or reduces the stock, etc. or the the capital shall declare the transfer of the stock within 30 days from the date of contract In case of transfer, or the decrease within 30 days of expiry date of the period of peremptory notice to the creditors in case of the capital decrease to the competent institution

Declare the disposal of capital goods

• When the foreign investor or the foreign investment company may transfer, rent, or use the capital goods imported exonerating the duty, etc. other than the purpose declared within 5 years from the date received the declaration, it shall declare in advance to the competent institution

Cancelation of foreign investment company registration

• When the entire stock possessed by the foreign investor is disappeared by transferring entire stocks possessed to the Korean or by the capital decrease of relevant company, the registration of the relevant foreign investment company shall be cancelled

Restriction of Foreign Investment

The businesses excluded from Foerign Investment (Annex 1. Regulation of Ministry of Knowledge Economy on the foreign investment and technology introduction)

• Mail business, central bank, personal fraternal insurance business, business fraternal insurance business, pension business, other financial market management business, other financial support service business, etc.
• Legislative organ, justice institution, administrative agency, foreign official institution, other international and foreign organization
• Economic research and development, other liberal arts and social science research and development
• Educational institution (infant, elementary to university, special school, etc)
• Artists, religious organization, industrial experts, environmental campaign, political and labor campaign organizations, etc.

The businesses restricted for foreign investment (Annex 2. Regulation of Ministry of Knowledge Economy on the foreign investment and technology introduction)

• Grain and other food crop cultivation business, livestock business, litoral sea fishery
• Nuclear power generation business, meat wholesale business, magazine and periodical publication business, domestic bank, etc. are needed to preliminary and post declaration