Investment framework and opportunities in South Korea

Procedures Relative to Foreign Investment

Freedom of Establishment

Guaranteed

Acquisition of Holdings

Possible

Obligation to Declare

A foreign investment must be reported under the Foreign Investment Promotion Act (FIPA) or the Foreign Exchange Transaction Act. A fast registration process is available for foreign direct investment (FDI) under the FIPA. To apply, an FDI needs to:

invest at least KRW 100 million;
acquire at least 10% of voting shares of a Korean company, or own shares of a Korean company and dispatch or appoint an executive officer to or at such Korean company.

Competent Organisation For the Declaration

Invest Korea

Requests For Specific Authorisations

Most sectors of the economy are open to foreign investment, with the exception of a few key sectors, for example: telecommunications, broadcasting, publishing, banking, naval, aviation, agriculture, natural resources. In these sectors foreign ownership is limited to a percentage ceiling, or subject to regulatory approval for reasons of national security, protection of critical technologies, and so on.

Investment Opportunities

Investment Aid Agency: Invest Korea
Korea Trade Investment Promotion Agency (KOTRA)
Tenders, Projects and Public Procurement: Public Procurement Service, Tenders
DgMarket, Tenders Worldwide
Other Useful Resources: Korean Free Economic Zones

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