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54 Country starter pack Business practicalities in Korea 5. Business practicalities in Korea
Country starter pack Business practicalities in Korea 55 Australians conducting business in Korea need to deal with a host of local legal provisions, including laws and regulations covering tax, employment, importing, foreign investment, property, banking, and repatriation of profits. This chapter provides an overview of the main areas that need to be considered in the Korean business environment. However, in addition to consulting this guide, you should also seek professional advice in the area for which you require specific information. Laws and regulations that may apply to your business in Korea are also subject to frequent changes as the Government moves to attract more foreign investment and business operations to Korea. Further reforms are expected in January 2016. 5.1 LAWS AND REGULATIONS Investment rules Foreign investment in Korea is governed by the Foreign Investment Promotion Act (FIPA). This act provides the legal basis for tax incentives and numerous benefits relating to foreign direct investment, while also underpinning the procedures for investment in Korea. Unless stated otherwise in the FIPA, the Foreign Exchange Transaction Law (FIPL) and related regulations will apply to matters related to foreign exchange and external dealings related to foreign investments. Foreign companies may invest in all but a small number of protected sectors, mainly involving communications and broadcasting. In some sectors, a joint venture (JV) with Korean companies may be required, although this has become less common in recent years. To be considered a foreign investment company under FIPA, foreign companies must invest at least KRW 100 million and acquire 10 per cent or more of the voting shares or interest of a Korean company. Since foreign-invested companies are local corporations established under domestic laws, the same laws that apply to purely domestic corporations will apply even if the foreign-invested company has gone through the processes as prescribed in the FIPA. Therefore, approval and permission may be required under each law before business may be conducted. The Government organisation: Invest Korea, provides extensive services free of charge to foreign businesses, including consultation, assistance with investment notification and corporate establishment, support for business activities in Korea, and grievance resolution. Invest Korea also conducts investment promotion activities abroad. If you are considering investing in Korea, it is highly recommended you consult Invest Korea.
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REPUBLIC OF Korea COUNTRY STARTER P
Page 3 and 4: SURFACE AREA 99,400 square kmS GDP
Page 5 and 6: Country starter pack Introduction t
Page 21 and 22: Country starter pack Getting starte
Page 39 and 40: Country starter pack Sales & market
Page 47 and 48: Country starter pack Conducting bus
Page 53: Country starter pack Conducting bus
Page 57 and 58: Country starter pack Business pract
Page 83 and 84: Country starter pack Visiting Korea
Page 97 and 98: Country starter pack Engage with us
Page 99 and 100: Country starter pack Engage with us
Page 102: © August 2015, Asialink Business.
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Korea

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