• If foreign capital was imported and exchanged into Korean won without investment notification, it is assumed that the capital is used for other purposes than for investment and thus is not accepted as investment capital.
• If a foreign-invested company wants to conduct FDI in Korea, it has to open an account at a foreign exchange bank after investment notification, and the investment capital has to be deposited into that account. However, if the foreign capital was deposited in an account of a non-resident?s foreign currency account in foreign currency, then the money can be seen as investment capital even if it was received before investment notification.
• Furthermore, it is possible to take the money out of the country in foreign currency when it was deposited in a non-resident’s account by showing the receipt of exchange on departure. However, if the investor has left the country leaving behind deposited money in Korean won, re-enters Korea and wants to exchange the deposited money, then it would not be possible to sell the Korean won and buy foreign currency with it.
