What is the direct investment procedure by acquisition of existing shares?

o The direct investment by acquisition of exiting shares, etc. is classified into the subject of filing or permission.

o While the acquisition of existing shares is subject to prior filing, but permit of share acquisition for the defense industry company is subject to the permit. However, in case of acquiring existing shares of listed companies or Kosdaq in accordance with the Securities Exchange Act (excluding companies of which share acquisition is restricted due to the nature of for the public corporation in accordance with article 199(2) of the Act or by individual laws), filing should be 30 days after acquisition and major procedures are as followings: made within

• A foreigner files directly or by an agent (with a power of attorney) to a head office/ branch of a domestic bank or KI and KOTRA (including domestic trade center or overseas 36 base trade centers).

 

– Documents to be submitted

  • A copy of foreign investment report by the method of existing shares, etc.
  • A document which can confirm the related party relationship between assigns when assigns are plural.
  • A certificate of a foreigner’s nationality

 

– The application receipt agency should issue a certificate of filing on confirming the descriptions, omissions, enclosed, etc.

O In order to acquire the existing shares of defense industry, the permit of the Ministry of Knowledge and Economy should be achieved and the procedures are as followings:

– A foreigner should make an application directly or by an agent with a power of attorney to the Investment Policy Team, Ministry of Knowledge and Economy (TEL: 02-2110-5359).

– Documents to be submitted
• The application of foreign investment permission by acquisition of existing shares, etc.
• A document which can evidence the status of related party between assigns in case of plural assigns
• A certificate of nationality

– The processing period shall be 15 days (15 day extension available if unavoidable) and the Minister of Knowledge & Economy should give a notice after deciding the permission by discussion with the competent minister, the Minister of National Defense.