The application form for tax deduction has to be submitted to the Ministry of Finance and Economy, but if the application is submitted together with FDI notification, it can be done at a foreign exchange bank or Invest KOREA.

Generally, the processing time takes about 20 days.

The amount actually paid is the investment amount and the ratio is the investment amount to the total amount. 

It is possible to get a re-issue of the registration certificate, if an application and the reason
for re-issue (no official format) are submitted at the relevant institution together with a memo-
randum or statement. However, the memorandum or statement has to certify that all responsi-
bility regarding situations or events that may occur due to the loss of the registration certifi-
cate will be accepted by the foreign investor. 

♦ The Project Manager (PM) system was set up to efficiently support foreign investors
and foreign-invested companies. The designation of the PM is done directly by the foreign
investor or the company.

♦ The project manager helps the potential foreign investor to successfully enter the Korean
market and for that the PM mediates between the relevant institutions and the investor, as
well as solves emerging problems. The PM also aids in providing research material and
documents requested by the investor. The duties of the PM are as follows:

• Gathering and providing information and documents and well as setting up meetings;
• Providing suggestions pursuant to Art. 9, 13, 14 and 14-2 of FIPA;
• Administrative support pursuant to Art. 15 and 17 of FIPA;
• Supporting the settlement of the foreign investors or executives and employees of the foreign-invested companies and their families in Korea (providing information about schooling and housing).

♦ Other related duties concerning foreign investment. 

♦Yes, it is considered FDI,

– Even if the additional acquisition of stocks of the foreign-invested company is less than
10% or KRW100 mil.
– If the foreign investor transfers a part of the shares to a foreign or Korean national and for
that reason does not meet anymore the conditions regarding foreign investment, it is still
considered foreign investment.
– For example, a foreign investor in possession of 10% of the total shares transfers 3% of
the shares to a third party. The 7% in possession of the foreign investor and the 3%
owned by the third party are still regarded as foreign investment. 

• If the foreign national is a corporate body or company

– Registration issued by the relevant government or other body with authority or other
document verifying that the said corporate body or company is existent in that country.

• If the foreign national is an individual

– Certificate of the citizenship issued by the government or other body with authority verifying the nationality of the individual.

• If an individual with Korean nationality has permanent residence in a foreign country

– Registration certificate of overseas Korean issued by a overseas institution of the Republic
of Korea or a certificate of permanent residence issued by the residing government or other body with authority. 

♦ Yes, it is considered to be foreign investment.
– If the total amount of the shares is more than KRW100 mil., and more than 10% of the total
shares are acquired, then it is subject to FIPA. In this case, the foreign company has to
notify foreign investment through the acquisition of existing shares pursuant to Art.6 of FIPA.

♦ Establishment and function of the foreign investment promotion center:

– In order to efficiently support foreign investors, the foreign investment promotion center shall be established in the central administrative bodies, major metropolitan areas as well as
‘shi’ (cities), ‘gun’ (counties), and ‘gu’ (districts). The center shall set up a cooperative
system with relevant agencies and allow the smooth flow of administrative duties including
approvals, licenses, permissions, certificates, notifications, recommendations, consulta-
tions, etc.

– Duties include the following:

• Checking and supporting administrative processes;
• Filling out and submitting documents related to foreign investment;
• Promoting, attracting and supporting foreign investment;
• Accepting, investigating and processing grievances of foreign investors or foreign-invested companies;
• Exchanging information and cooperating with relevant institutions;
• Other administrative support services.

♦ Establishment and function of the foreign investment promotion committees

– The committees shall be set up in the major metropolitan cities and provinces and conduct the following duties:

• Planning with regard to attracting, promoting and supporting foreign investment;
• Consulting the grievance solution process of foreign investors or foreign-invested companies;
• Consulting administrative duties;
• Other measures that the governors of the metropolitan cities or provinces find necessary to promote foreign investment.