Navigating Foreign Direct Investment (FDI) for Success in South Korea

Foreign Direct Investment (FDI) is a pivotal process involving the establishment of new corporations by foreign entities or individuals, or the acquisition of shares in domestic enterprises. This endeavor fosters enduring economic relationships and active participation in management.

Understanding the Various Forms of FDI in South Korea

1. Equity Acquisition in Domestic Enterprises:

- Requires a minimum investment of 100 million won.

- Ownership of 10% or more of total voting shares or investment is essential.

- Exceptions include dispatching executives or contractual arrangements for executive appointments.

2. Long-term Subsidiaries:

- Refers to overseas subsidiaries of foreign invested companies or individuals.

- Involves companies with capital investment ties with such subsidiaries, offering support for five years or more.

3. Contributions to Non-profit Corporations:

- Involves reinvestment of undistributed retained earnings of domestic foreign-invested companies.

Essential Documents for FDI Declaration

- Foreign Investment Report Form (two copies per investment type).

- Proof of nationality for the foreign investor (passport or official government-issued entity certificate).

- Notarized power of attorney and representative identification (if applicable).

- Consent form for personal information and unique identification information collection.

- Additional documents as required for each investment type.

Navigating the Korea FDI Process: A Flowchart

1. Consultation and Investment Declaration Form Preparation (Bank):

- Initial consultation and form preparation.

2. Submission and Investment Declaration Certificate Issuance (Bank):

- Submission of forms and receipt of the investment declaration certificate.

3. Foreign Capital Inflow (Telegraphic Transfer/Cash Importation):

- Transfer or importation of foreign capital into South Korea.

4. Investment Funds Handling (Share Capital Payment/Bank):

- Management of investment funds, including share capital payments.

5. Incorporation Registration and Business Registration (Court Registry Office/Tax Office):

- Registration of incorporation and business at the court registry office and tax office.

6. Certificate of Registration for Foreign-invested Enterprise Issuance (Bank):

- Receipt of the certificate of registration for the foreign-invested enterprise.

Conclusion

Embark on your South Korea FDI journey with confidence. Whether you're exploring investment opportunities, managing documentation, or seeking expert guidance, our team is here to support you every step of the way. Contact us today to unlock the potential of foreign direct investment in South Korea.

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