It is often the case that a foreign-invested company in Korea needs financial support from its overseas parent company from time to time during the initial stage of setup. is the process of capital transfer and accounting more complicated?

There are no differences in the accounting process of a branch office and a foreign-invested company.If capital is transferred from the parent company (operating capital, other financial needs, etc.), the reason for its import and its accountability need to be examined. If the additional capital is to be treated as capital increase, then it has to follow the regulations in the FIPA as newly acquired stocks of an existing company. If the additional capital is to be treated as a loan, a contract with the conditions of the loan has to be signed before the necessary capital can be imported pursuant to the Foreign Exchange Transaction Act.