Legal basis:
– Foreign Investment Promotion Act;
– Restriction of Special Taxation Act.
- Registration of a foreign-invested company
A foreign investor or a foreign-invested company that falls under any of the following cases (including cases of capital increase) shall file for registration as a foreign-invested company:
– Where he, she, or it has completed payment for the object of investment;
– Where he, she, or it has completed the acquisition of stocks,… (referring to having paid for the stocks,…) by the methods that the foreigner holds stocks or shares (acquisition of stocks,… newly issued by the Korean corporation or enterprise; or acquisition of previously issued stocks or shares);
– Where he, she, or it has completed contribution by the methods that the foreigner contributes to a non-profit corporation in order to establish a continuous cooperative relationship with the corporation in terms of research personnel, facility,… and which is a Korean corporation or enterprise in the field of science and technology; or other contributions to a non-profit corporation by the foreigner.
- Cancelling the registration of a foreign-invested company
The Minister of Trade, Industry and Energy may revoke the permission or cancel the registration if a foreign investor or a foreign-invested company falls under any of the following cases:
– Where the foreign-invested company reports the closure of its business;
– Where the foreign investor has transferred all of the stocks,… owned by himself or herself to a national of the Republic of Korea or a Korean corporation or enterprise, or has ceased to hold all of the stocks,… due to the capital reduction of the relevant foreign-invested company;
– Where he, she or it has filed for registration as a foreign-invested company as if payment for the object of investment were completed.
- Adjust the registration of a foreign-invested company
A foreign investor or a foreign-invested company shall file for registration of modification in any of the following cases:
– Where he, she, or it has filed a report on foreign investment by any of the methods of acquiring stocks;
– Where the object of investment is used or disposed of for a purpose other than the reported purpose;
– Where stocks,… owned by the foreign investor are reduced following transfer of the stocks,… he or she has acquired to a third person, or the capital reduction of the relevant foreign-invested company;
– Where any of the matters prescribed by Ordinance of the Ministry of Trade, Industry and Energy, such as the foreign investment ratio and the trade name or name of the foreign-invested company, is changed.
