Ex post management of foreign investment

Registration of change in 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.
    • Stock acquisition from merging(stock acquisition from merging and free issue of shares)
    • Change of holdings and ownership from capital reduction and stock transfer of foreign investors
    • Change of holdings and ownership of foreign investors from capital increase of local
    • Change of name or nationality of foreign investment business or foreign investors
    • Change of registered contents, address of foreign investment business, investment ratio, and other foreign investment fund
ubmitting documents
  • - Registration of foreign investment business (Return existing registration of foreign investment business)
  • - copy of corporate registration of foreign investment business(including reason of cancellation)
  • - 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
Report of investment transfer and capital reduction
  • Within 30 days from contract conclusion for transfer of reduction of stocks and transfer by foreign investor (deputy). For reduction, the optimum period within 30 days for creditor should be reported to consigning institution for transfer and reduction. If the transferee is a foreigner from a different country, please attached the citizenship certificate when transferring in order to omit the procedure of stock acquisition report
Submitting documents
  • - 2 copies of reduction registration of stock, share, and transfer
  • - Copy of transfer contract, documentary evidence of share reduction change, transfer, or reduction
  • - Power of attorney for deputy report
Disposition report of capital goods
  • Introduction of capital goods for tariff exemption of foreign investors or foreign investment business should be transferred or loaned within 5 years from repair of import declaration, or if other purpose are desired for use, it should be reported to the consigning institutions in advance.
Submitting documents
  • - 2 copies of registration of capital disposition
Management of additional business of foreign investment or acquisition of other national business investment
  • Foreign investment business cannot exceed management of additional business on the limited business of foreign investment. However, it is permitted if the ratio of foreign investment for limited business is less than 10-hundredths. Also, foreign investment business cannot exceed management of stocks from other national business, but in exception, the following is permitted.
    • Ratio of Foreign investment being less than 50-hundreths, stock acquisition of national business being the largest shareholder
    • Foreign investment business leading financial business or insurance business to partially or wholly acquire stocks from other business, and acquire stock by the provision of the law.
    • Acquisition within 10-hundredths of total investment in capital stock of national business
Cancellation of registration on foreign investment business
  • When foreign investors transfer partial or whole possessed stock to citizens (law) of Korea, or when foreign investors lose all or partial stock from capital reduction, the registration of foreign investment business will be cancelled. The registration of cancellation can be submitted to the consigning institution of foreign investment business or by foreign investors. The certificate of foreign investment business registration should be returned to the consigning institution. Besides the intended cancellation registration of foreign investor, Knowledge and Economy Minister may cancel registration or cancel license if the following occurs in foreign investment business.
    • Closure or no activities of business over 2 years in registered Foreign investment business
    • Orders of Knowledge and Economy Minister from foreign investor for registered existing stock on business leading Foreign investment business or defense industry Not performing other needed measures
    • Occurrence of disperse in registered Foreign investment business
    • Cancellation registration by foreign investor from the regulation of the president
    • Transfer or loan of registration to other person by Foreign investment business
    • Disguise of payment in investment object to be registered in Foreign investment business
Standard of business opening day
  • - Day of producing goods by each place of production for manufacturing business
  • - Day of mining and collecting minerals by each place of business for mining industry
  • - Day of opening service and goods for other business
  • For capital increase, the regulation for capital increase registration is applied from the date of business opening. For acquiring stock from foreigners of capital transfer such as reserve fund, reevaluation reserve fund, and other are determined in reduction ratio and reduction deadline by the reduction example of occurring grounds. For registration of tax reduction and exemption within 5 years after paid-in capital reduction, the reduction will be determined according to the part of growth in foreign investment ratio before reduction. If reduction is done after capital increase, it is considered to as reduction. However if national business capital increase become a foreign investment business by a foreign investment, it will not be relevant to the capital increase, but will be in new foreign investment.
  • For merging, if foreign investment business merges with national law(excluding foreign investment business in reduction period) during the period of reduction to be reduced in ratio of foreign investment, the foreign investment ratio before the merge of foreign investment business will be applied.
  • If Reevaluation reserve fund and reserve fund which is not a target of new reduction are appointed, there will not be any changes in reduction ratio in the year of capital increase or the next year of business.
the person in charge
Local Economy Division Tel.02-3423-5492