is Coming to Korea - Korea IT Times

Investment Guide
Investment
Guide
The sixth installment in a seven-part series
3. Corporation Establishment
Types of Foreign Advancement into Korea
Foreign advancement into Korea for business purposes can largely be divided into 4
types; a foreigner (corporation)'s establishment of a local corporation, a foreigner (corporation)'s
establishment of a private business, or a foreign corporation's establishment
of a local branch or a local office.
A Series Schedule
1. FDI System in Korea
1-1 Foreign Direct Investment
1-2 Foreign Investment Promotion
Act
1-3 Foreign Investment Promotion
and Control
2. FDI Procedures
2-1 Foreign Investment
Procedures
2-2 Foreign Investment Report
2-3 Post Management of Foreign
Investment
2-4 Forms
3. Corporation Establishment
4. FDI Incentive
5. FDI Related Law
Foreign-Invested Companies under the Foreign Investment Promotion Act
The Foreign Investment Promotion Act and Korea's domestic commercial law apply to investments that a foreigner (corporation)
makes by establishing a "local corporation" in Korea. To benefit from the protections and benefits of the Foreign Investment
Promotion Act, the foreigner shall invest a minimum of 50 million.
The Foreign Investment Promotion Act will also apply to foreign individuals investing 50 million won and more who operate a business
as a form of "private business." Such an investment will also be recognized as a foreign investment.
Domestic Branch of a Foreign Company by the Foreign Exchange Trade Act
A foreign-invested business that generates profits is categorized as "branch." As it is a foreign corporation, such a branch is not considered
FDI.
60 KOREA IT TIMES | February 2010