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Foreign Direct Investment(FDI) Registration Procedure |
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| General Rules |
Registration of intent to invest has been simplified. Foreign investors, their authorized representatives, or KISC can register at any foreign exchange bank, KOTRA headquarters or any domestic or overseas KOTRA trade office.
The registration procedure itself should take no more than 3 hours |
| Authorization Process |
| The Comprehensive System |
Applications submitted for approval are grouped into five categories: Factory establishment; small and medium-sized business; construction; wastewater; and material disposal facilities. In order to speed up the approval process, if all major requirements are met as outlined in the Foreign Investment Promotion Act, all secondary requirements will be waived. |
| The Automatic Approval System |
If the allotted time for the approval of an application expires (30 days for an application requiring change of land use under national territory use management law; 7 days for factory establishment, and 3 days for construction), the application will be considered automatically approved. |
| Prior Approval System |
Even if the applicant has not submitted all the necessary documents, approval may be given on the condition that the necessary documents are submitted at a later date. |
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Foreign Investment Flow-Chart |
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Head Office & Branches of Korea Foreign Exchange Bank |
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Domestic branches of foreign banks |
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KOTRA overseas & domestic offices |
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Immediate settlement(Within 3 hours) |
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Capital Goods-Customs Clearance |
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Cash Withdraw |
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Registration of Foreign Invested Company |
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- Relevant authorities notification
- Within 30 days of payment date of capital goods |
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Construction:Within 1~3 Years by project |
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Approval & authorization from city or county |
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FDI Ones-stop service |
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- Comprehensive System
- Automatic Approval System
- Prior Approval System |
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| Investment Procedures for Acquisition of Newly Issued Stock |
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Notice is submitted to: |
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- Head offices and branches of Korean banks
- Branches of foreign banks
- KOTRA overseas and domestic offices |
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Immediate settlement (Within 3 hours) |
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Capital goods confirmation with the foreign exchange bank is required if: |
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- Resections or exemptions of custom duties are applied;
- The Import Diversification Program is applicable
(The requirement is to be abolished in June 1999)
- Used capital goods are involved |
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Cash should be used in accordance with the purpose specified in the FDI notification |
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Notice or approval is required during the post-investment period if: |
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- The content of the FDI plan initially submitted changes;
- Use of invested capital is changed from the origin plan
- Dividends declared and received are reinvested;
- Business other than the one specified in the original notice is conducted (*);
- Stocks of other companies are acquired (**);
* Permission is required if this new business falls under the category of business partially liberalized or closed to FDI
** Notice or Permission (in exceptional cases) is required |
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