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Ordinary procedure for FDI

Report of FDI

• With the effectuation of the Foreigner Investment Promotion Act in November 1998, all a foreigner investor has to do for commencement of business is to submit the report.
• Report: To be submitted by the investor or his/her agent (accompanied by the power of attorney)
• Report:
• To be submitted to the headquarters or a branch of a domestic bank
• Invest KOTRA or KOTRA office either in or out of the country
• Submittal documents
• Report on FDI through acquisition of new stocks
• Power of attorney (in the case of an agent)
• A document verifying the investor’s nationality (i.e. a copy of the passport or of the foreign corporation registry)
• Span of time required for processing the report: Immediately

Transfer of investment fund

• Transfer of fund: 1) Remittance through a bank in the name of the investor, or 2) Carrying personally at the time of entering Korea (It should be reported to customs, which will issue a confirmation letter.)
• It is possible to remit fund to a bank in Korea, even if you have no account in that bank.
• Deposit of the remitted funds with the capital (subscription deposit on securities) account
• The bank’s deposit certificate is required at the time of registration with the court.
• ※ Some banks ask for the submittal of relevant documents (such as a copy of the minutes of the promoters’ meeting, the articles of incorporation, subscription form, notice of stock allotment, etc) for issuance of the deposit certificate. Thus, it is necessary to check it in advance.

Registration as an FDI business

• Place of registration: The institution where you submitted the FDI report
• Deadline for registration: Within 30 days of payment or capital or objects of in-kind investment (such as capital goods, stocks or real estate)
• Submittal documents
• A copy of the application for registration of an FDI business
• A copy of the corporate registry
• A copy of the certificate of purchase/deposit of foreign currency
• A certificate of the registration as an FDI business is immediately issued upon submittal of the application along with the foregoing documents. The registration certificate is required for:
• Remittance of profit from investment out of the country
• The investor’s application for long-term stay visa (D-8)