K&P Law Firm - International Law Firm in Incheon, South Korea

Foreign investors may face various difficulties, caused by political and economic situations of a country in which they operate, besides normal business risks. Given the risk factors, Korea has implemented regimes to protect foreign investors. Meanwhile, Regulations on Foreign Investment and Technology Introduction prescribes the restraints and restricted businesses. 1. Liberalization of Foreign Investment 2. Protection of Foreign Investment 3. Restrictions and Prohibitions on Foreign Investment 1. Liberalization of Foreign Investment Except as otherwise prescribed by the Acts of the Republic of Korea, a foreigner may conduct, without restraint, various activities of foreign investment in the Republic of Korea. Foreigners are restricted from foreign investment in the following cases: where it threatens the maintenance of national safety and public order; where it has harmful effects on public hygiene or the environmental preservation or is against Korean morals and cust...

Foreign investment procedures consist of foreign investment report, remittance of investment fund, registration of incorporation & business, and registration of a foreign-invested company. The procedures applied to foreigners are basically the same as for Koreans except for the two additional steps: foreign investment report and registration of a foreign-invested company. Where a foreign investor registers a privately-owned business, 'registration of incorporation' is not required. 1. Foreign Investment Notification 2. Foreign Investment Report Procedures by Investment Type 1. Foreign Investment Notification  Foreign Investment Notification A foreign investor or an agent may report their investment at KOTRA, Korea Business Centers (KBC) of KOTRA, headquarters and branches of domestic foreign exchange banks, or domestic branches of delegated foreign banks.  Reporting person: A foreign investor or an agent  Delegated agency: Headquarters and bran...