O The foreign investment by acquisition of new shares, etc. means i) establishment of a new corporation either alone or as a joint venture or ii) participation in the capital increase of domestic enterprises including foreign-invested enterprises.
o Investment procedures
- A foreigner submit the report of foreign investment to a head office/ branch of a domestic bank or KOTRA (including domestic trade center or overseas 36 base trade centers) and receives a certificate of filing and
- after get a certificate of foreign currency purchase after receiving the foreign currency or get a certificate of like kind contribution completion after receiving the capital goods
- Register the incorporation to the district register through the support of a judicial scrivener or IK comprehensive administrative office
- Even before payment completion of investment object or calculation of acquisition amount for existing shares, the investment of more than 100 million won or 10%, the registration of invested company is possible (partial registration)
※ However, the foreign-invested enterprise which received the tax reduction decision before the commencement of business operations, should make an application for the business registration to the competent tax office within 30 days from the date of corporate foundation registration (It is recommended to register the business license before the customs clearance or agreement for the like kind investment or real estate acquisition)
※ Also in case of getting capital goods such as like-kind investment, etc., the application of business license should be made before the capital goods receipt and incorporation registration to get VAT deduction, and the business license may be applied to IK administrative support office.
O When the establishment of a factory is required, the license/ permit, filing and registration should be made but may be requested to the IK comprehensive administrative office.
