Foreign Investment Procedure
▶ Foreign Investment Notification
Minister of Trade, Industry and Energy (branches, offices and trade agencies entrusted by the head of KOTRA or foreign exchange banks)
- When to report
In advance (in case money is sent before the report, it is considered as a pre-report if it is reported within the day of exchange)
- Issuance of a certificate
Upon receipt of a report, a certificate will be issued to the reporter without delay.
- Legal binding of foreign investment notification
Legally not binding
※ The first notification can be changed at any time, if needed.
▶ Documents required for reporting foreign investment
- A report
Report form for each type (available in either Korean or English)
- Power of attorney
A representative who, by granting the right of representation of a foreign investor, applies for permission to report pursuant to legal regulations.
※ Documents certifying the nationality of a foreigner
(Corporations or organizations) A certified copy of register issued by a government or other authority of the country or documents proving that the corporation or organization is located in that country
(Individual) documents that prove the nationality or a citizenship, a passport, etc. issued by the government or other authority of the relevant country
Remittance of investment funds
After the investment report, you can visit the bank and obtain a temporary account.
Foreign investor and remitter on the foreign investment report must be the same person.
In case of medium or large-scale investment, the amount of the initial remittance is limited to 100 million won.
From the second remittance, you can send money as needed.
- Foreign investors must remit investment funds in their own name
* Domestic funds cannot be admitted.
- Foreign investors receive a stock payment certificate and a foreign exchange purchase certificate from the bank.
▶ Registration of incorporation (foreign invested company)
● Need to confirm in advance
- Corporation type : Corporation, Limited liability company
- Company name: Check for existence of an identical name (not available for English name)
* Supreme Court Internet Registry : http://www.iros.go.kr/pos1/html/eng/PEngRegistryIntroH.html
- Secure an office address
- Executives (regardless of nationality or residence in Korea)
Directors : Executive directors (CEOs), non-executive directors and other non-executive directors
(※ must have at least three directors in companies, but possible to have one or two if the capital of a company is less than one billion won)
Audit (no need to appoint when the capital is less than 1 billion won)
- CEO's address certificate
- Foreign investment report (confirmed investor, the amount of investment, business field, etc.)
- Appoint a lawyer or accountant (Matching service is available, if needed.)
▶ Corporate Establishment Report and Business Registration
● Application documents
- Agency : Jurisdiction Tax Office
- Application form : Incorporation report and business registration application
● Required documents
- A copy of articles of Incorporation
- A copy of lease agreement (only when renting a workplace)
- If you rent a part of the mall, which is covered by the law for protection of commercial building tenants, one copy of the relevant architectural drawings is needed.
- A copy of statement of shareholders or investors
- A foreign-invested company needs to open an account by using a business registration number.
The bank claims the required documents and transfers the paid-in capital to the newly incorporated account.