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Foreign Direct Investment

(FDI : Foreign Direct Investment)

Foreign direct investment means that a foreigner acquires stocks or shares of a domestic company for the purpose of establishing a continuous economic relationship,
including participation in management and technical cooperation

Type

Acquisition of shares or stocks of a domestic company

Acquisition of new shares : Greenfield

Establishment of corporation or factory ▶ investing foreign production facilities, technology, know-how, etc.

Acquisition of existing stock : M & A

Foreign investors buy existing domestic corporations ▶ replacement of owners, application of advanced management technologies, etc.

Donating fund for non-profit corporation

It's required that foreigners' capital investment over 50 million won + Over 10% of the total capital investment + Foreign-invested-company possesses independent research facilities in the field of science and technology.

Long-term loan

Regarded as a foreign direct investment when a company in which foreign investors have invested capital extends a loan to the foreign-invested company over more than five years.
Requirements
1) Investments over 100 million won
2) Holding over 10% of total voting stocks or total investment

※ Exceptions to investment ratio: When a foreigner is dispatched or appointed to a domestic company