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FDI = Acquisition of stocks of Korean businesses + Long-term loans
Acquisition of stocks or equity shares of Korean businesses
(The Foreigner Investment Promotion Act, Article 2, Paragraph 1, Subparagraph 4, Item A)
Concerning a foreigner in possession of stocks or equity shares of a Korean corporation (including one being established) or a business run by a Korean to establish continued economic relations with it, including participating in its management activities
- Investing not less than 50 million won (based on the amount of acquisition in the case of acquisition of stocks) per person (under Article 2, Paragraph 2, the Enforcement Ordinance Article, the Foreigner Investment Promotion Act)
- A foreigner in possession of not less than 10% of the total number of stocks with voting rights issued, or of the total amount of investment made, by a Korean corporation or a business run by a Korean (under Article 2, Paragraph 2, Subparagraph 1, the Enforcement Ordinance Article, the Foreigner Investment Promotion Act)
Long-term loan
(under Article 2, Paragraph 1, Subparagraph 4, Item B, the Foreigner Investment Promotion Act)
A 5-year (or longer-term) loan made to a foreigner-invested business in Korea by its parent company out of Korea or a business making capital investment in the parent business
Definition of “a business making capital investment in the parent company” stated in the foregoing
(under Article 2, Paragraph 3, the Enforcement Ordinance Article, the Foreigner Investment Promotion Act)
A business in possession of not less than 50% of the stocks issued, or capital invested, by the parent company
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