Report of foreign investment
- Foreign investors (deputy) may report foreign investment in Invest KOREA(KOTRA) or KOTRA / KBC foreign investment base (Korea Business Center), head or branch bank of Korea’s exchange banks, and other appointed foreign banks in Korean branches.
- Person of report : direct report of foreign investor or by a deputy
- Institutions of report registration : head or branch bank of Korea’s exchange banks , foreign banks in Korean branch, Invest KOREA or KOTRA/ KBC foreign investment base (Korea Business Center).
- Period of report : at once (submit documents for report)
- Foreign investment is in the principle of simple transaction reporting system since November of 1998. Report is divided by preliminary report and investment acquisition or ex post report after contract agreement. The following are detail contents of reports.
- Preliminary and Expost
|Preliminary report||• attaining subscription rights or contract method of Registration of foreign investment and report of change in investment||-|
|• Registration of foreign investment for existing investment and report of change in investment||• Exceptionally, acquisition of investment in listed enterprises, within 30 days after acquisition|
|• Registration of foreign investment for long period loan and report of change in investment||• Exceptionally, for Ex post report , within 30 days after acquisition|
|Ex post report||• acquisition report of investment in merger and others||• within 30 days after acquisition|
|- acquisition of free issue of new shares in reserve fund of Foreign investment business, reevaluation reserve, etc|
|- acquisition of merger, business division, comprehensive exchange and transfer of investment|
|- Accidental investment (dividend) from acquired investment|
|- acquisition of purchase, inheritance, bequest|
|- acquisition of convertible bond(CB)· exchange bond(EB)· depository receipt (DR), convert, exchange, receipt|
|• Transfer report of investment||• within 30 days after contract conclusion|
|• Decrement report of investment||• within 30 days from optimum period on date of conclusion for creditor by provision of Article 439 on commercial law|
|• registration of Foreign investment business, change registration, request in cancellation of registration||• within 30 days from private ownership|
- - copy of Foreign investment report by types (new stocks, existing stocks, long-term loan, etc)
- - Nationality certificate of foreigner
- - corporate or association : Confirming document of address from government, or certified registration of authorized organization for foreigner of corporate or association
- - Private : citizenship certificate issued by the government or other authorized organization. Document confirming nationality with passport, etc
- - If a foreign investor has the citizenship of Korea, substitute with alien registration from the government of saying country or other authorized organization as well as overseas resident certificate issued by person in charge of diplomatic offices of Korea.
Additional documents if needed
- - Documentary evidence of investment purpose
- - Other documentary evidence related to stock acquisition
- - Power of attorney (report, apply of license by the deputy of foreign investor’s presentation of power of representation)
Remittance of investment fund
- In principle, the investment fund should be transferred directly by the foreign investor to the exchange bank. Domestic source fund will not be admitted. In the process of payment, the bank issues payment custody certificate (needed for corporate establishment registration) and foreign exchange of purchase certificate (needed for foreign investment business).
Registration of corporate establishment and business registration
- Conclude business registration and corporate establishment with various documents needed to a competent court and tax office.
Corporate credit transfer of paid-in capital
- Once the procedure on Registration of corporate establishment and business registration is completed, the newly-established company is a valid corporate by law, and the bank should claim needed documents to transfer the paid-in capital of the bank account of the newly-established company.
Registration of foreign investment business
- If the following occurs, foreign investor (deputy) or foreign investment business should Register of foreign investment business to the consigning institution within 30 days of the following occurrences.
- Payment completion of investment object (acquisition of new stocks)
- Payment completion of existing stocks (acquisition of existing stocks)
- Stock acquisition from merging (new acquisition of CB transfer, business division)
- Completion in appearance of nonprofit corporation (acquisition of new appearance method)
- - Registration of foreign investment business
- - copy of corporate registration(for corporate business) for foreign investment business or copy of business registration (for private business)
- - certificate of foreign exchange purchase or copy of foreign deposit certificate
- - stockholder's list (corporate seal , compare original ) or documentary evidence of investment payment transfer
Additional documents if needed
- - documentary evidence of investment object
- - copy of completion certificate of investment in kind (for capital goods investment in kinds)
- - Report of commercial law inspector or copy of appraisal report of appraiser (for investment of stock or national real estate)
- - Other documentary evidence related to acquisition of stock
- - Power of attorney for deputy report
- the person in charge
- Local Economy Division Tel.02-3423-5492