2015 Q&A on FDI in Korea

Contents I. Foreign Investment - Definition and Procedure - Definition - 1. Contribution to a Non-Profit Corporation 2. Amendment of the Commercial Act and the Minimum Foreign Investment Amount 3. Establishment of a Foreign-Invested Company by a Foreign Investment Association (Fund) 4. Investment by a Chinese National Permanently Residing in Korea 5. investment Through a Holding Company (Paper Company) 6. Foreigner's Investment in Mutual Fund 7. Foreign Investment in a Project Financing Vehicle 8. Foreigners' Ownership of Depository Receipt 9. Recognition as Foreign Investment When the Foreign Investment Ratio Falls Short 10. Acquisition of Preferred Stocks and Calculation of Foreign Investment Ratio 11. A Non-Resident Foreign Company's Establishment of a Domestic Branch 12. Recognition of Exercise of Preemptive Rights as Foreign Investment - Object of Investment - 13. Investment of Profit From Portfolio Investment 14. Investment of Funds Sourced From a Korean Bank Located Overseas 15. Investment With a Promissory note or Letter of Credit 16. Investment in-Kind With Used Capital Goods 17. Scope of Capital Goods 18. Investment in-Kind with Patents 19. Recognition of Computer Program Work as Foreign Investment 20. Industrial Property Evaluation Agencies 21. Investment-in-Kind With Domestic Real Estate 22. Investment-in-Kind With Loan Bonds 23. Conversion of Borrowings to Capital 24. Debt-Equity Swap by Set-Off - Long-Term Loans - 25. Calculation of Long-Term Loan Period 26. Prepayment of Long-term Loans With a Maturity of Five Years or Longer 27. Recognition of Loan Contract Extended to Five Years or Longer as Foreign Investment 28. Introduction of a Long-term Loan with Maturity of Five years or Longer From a Joing-Invested Overseas Company 29. Transfer of Loan Receivables to a Third Person 30. Long-Term Loans With Maturity of Five Years or Longer Funded by Domestic Borrowing - Investment Procedure - 31. remittance of Investment Funds 32. Overseas Remittance by a Third-Party Person 33. Cost of Establishing a Stock Company 34. Registration of a Foreign-Invested Company 35. Partial Registration of a Foreign-Invested Company 36. Administrative Procedure for Merging a Domestic Company With a Foreign-invested Company 37. Foreign Investment and Notification of Business Combination 38. Investment-in-Kind of a Foreign-Invested Company's Shares - Recovery of Investment Funds and Reinvestment - 39. Guarantee of Foreign Investors' Overseas Remittance 40. Foreign Investors' Sales of Stocks Through Off-Exchange Transaction 41. Receipt of Proceeds From the Sale of Stocks in KRW Currency 42. Cancellation of Registration of Foreign-Invested Company due to Stock Transfer or Capital Reduction 43. Recognition of Foreign Investment After Transfer of Shares or Capital Reduction 44. Re-Investment of KRW Currency Funds Received Through Capital Decrease for Value 45. Re-Investment of a Foreign-Invested Company's Residual Liquidated Assets 46. Sourcing a Capital Increase for Value with Dividends 47. A Foreign-Invested Company's Re-investment of Earned Surplus - Businesses Restricted from Foreign Investment - 48. Permission of Foreigners to Operate a Housing Site Development and Supply Business 49. Operation of a Massage Business 50. Foreigners' Operation of a Foreign Patient Attraction Business 51. Foreigners' Investment in an Educational Institute for the Purpose of Making Profit 52. Permission of Foreign Investment in the Automotive Financing Business 53. A Foreign-Invested Company's' Acquisition of Stocks of a Meat Wholesale Company II. Incentives for Foreign Investment - General - 54. Permission of Foreign-invested Companies' Short-term Foreign Borrowings 55. Upper Limit on Foreign-invested Companies' Payment of Dividends With Stocks 56. Incentives for Establishing a Foreign School 57. Tax Incentives for Small and Medium-Sized Start-Ups 58. Round-Trip Investment by a Foreigner 59. Tax Incentives for Korean Companies That Withdraw From Overseas Markets and Relocate to Korea (i.e. "U-Turn companies") 60. Tax Incentives for Foreign Engineers 61. Tax Reduction/ Exemption for a Korean Company Owning High Technology 62. Reduction or Exemption of Registration and License Tax for Registering Capital Increase 63. Initial Date in Reckoning the Period of Tax Reduction or Exemption for Captial Increase 64. Initial Date in Reckoning the Period of Tax Reduction and Exemption Where Interest Income is Accrued Before Business Commencement 65. Effectiveness of Decision to Grant Tax Reduction When the Foreign Investor is Changed 66. Tax Reduction or Exemption When Business is Partially Transferred to a Domestic Company 67. Period for Which Customs Duties for Capital Goods are Exempted - Foreign Investment Zones - 68. Installment of New Business Facilities to Qualify for Designation as a Foreign Investment Zone 69. Requirements for a Domestic Company to Move Into a Foreign Investment Zone 70. Businesses Eligible to Move Into a Complex- Type Foreign Investment Zone 71. Upper Limit on the Size of Land that can be Leased in Complex-type Foreign-Investment Zones - Free Economics Zones - 72. Service Businesses Eligible for Tax Reduction/Exemption in a free Economic Zone 73. Designation of a Stand-Alone Type Foreign Investment Zone Within a Free Economic Zone 74. Conditions for Opening a Foreigner-Only Casino in a Free Economic Zone 75. Establishment of a Foreign educational Facility Within a Free Economic Zone 76. Establishment of a Medical Institution Within a Free Economic Zone 77. Establishment of a Foreign Medical Institution in Jeju Special Self-Governing Province III. Management of Foreign Invested Companies - Labor - 78. Social Insurance 79. Statutory Working Hours 80. Extended Work Wages 81. Minimum Wage 82. Retirement Allowance 83. Statutory Holidays 84. Annaual Leave with Pay 85. Rules of Employment 86. Labor-Management Council 87. Fixed-Term Workers 88. Dispatched Workers 89. Substitue Holidays 90. Maternity Leave 91. Probationary Period 92. Compensatory Leave System - Acquisition of Land - 93. Points to Check When Acquiring Land in Korea 94. Foreigners' Real Estate Acquisition Procedure 95. Foreigners' Notification of Land Acquisition 96. Land Acquisition Notification by a Domestic Branch of a Foreign Corporation 97. Land Acquisition Notification by a Company Where No Less Than Half of Its Executives Are Foreign Nationals 98. Real Estate Acquisition by a Domestic Corporation Where No Less Than 50 Percent of Its Shares is Held by Foreigners 99. Foreigner's Land Division - Taxation & Accounting - 100. External Audit Requirement 101. Taxation for a Private Business vs. Corporation 102. Payment of Value Added Tax for Entrepreneurs with Two or More Business 103. Value-Added Tax Refund 104. Value_added Tax for Imported Goods 105. Tax on Import of Liquor 106. insufficient Capital Tax System IV. Settlement 107. Alient Registration 108. Change in Status of Sojourn 109. Extension of Period of Sojourn 110. Foreigners' Obligation to Enroll in National Health insurance 111. Foreigners' registration of Seal Imprint 112. Drivers' Lincense 113. Changes in Alien Registration Matters That Require Notification 114. Notification of Change of Sojourn Place 115. Child and Infant Welfare 116. Medical Care Subsidies for Pregnancy and Childbirth 117. Returning the Alien Registration Card 118. Foreigners' Filing of Income Tax Return 119. Lost or Stolen Cellphone 120. Emergency Medical Call 121. Issuance of a Korean Creidit Card 122. Korean Language Classes 123. Foreigner's Subscription to Mobile Phone Service 124. Foreign Investors' Application for Permanent Residence 125. Confirmation of Foreign Public Documents When Filing for Registration of Incorporation of Foreign-Invested Company 126. Fast-Track Immigration Service for Foreign Investor