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Foreign Investment Procedure

01 | Foreign Investment Notification (KOTRA or foreign currency exchange bank)

▶ Foreign Investment Notification

- Report
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

02 | Investment funds remittance (banks available for foreign currency exchange)

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.

03 | Payments of stocks (banks available for foreign currency exchange)

- 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.

04 | Registration of incorporation (Court registry office)

▶ 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.

05 | Transfer of investment fund to corporate account (banks available for foreign currency exchange)

The bank claims the required documents and transfers the paid-in capital to the newly incorporated account.

06 | Register as a foreign-invested company (first reporting agency)

Registered as a foreign invested company

Application Form : Foreign-invested enterprise application form
Applicant : Foreign investors or foreign invested companies

Required Documents (New Registration)
- One copy of certificate of purchased foreign currency or certificate of deposited foreign currency where remittance is confirmed
- One copy of each of the following documents of the enterprise to register as a foreign-invested enterprise
- A certified copy of corporate register
- A copy of business registration or identification number

Partial registration of foreign invested company
A foreign investor or a foreign-invested company can register as a foreign-invested company if it satisfies the minimum foreign-investment requirements, even before the completion of the payment for investment target or settlement of the acquisition price of stocks.