How to File a Foreign Investment Report

Procedure

Procedure

1. 01

   1. Check whether it counts as foreign investment — It is a foreign investment if the investment amount is 100,000,000 won or more and the investor holds 10% or more of the total voting shares or total contributions, or dispatches or appoints an officer to the company. If 2 or more foreigners invest together, the amount is judged per person. If the requirements are not met, other foreign exchange procedures are reviewed instead of the Foreign Investment Promotion Act.

2. 02

   2. File the foreign investment report before investing — Submit two copies of the foreign investment report with the attached documents to KOTRA or a foreign exchange bank in advance. Once the report is received, a report certificate is issued without delay. In cases set by law, such as acquiring existing shares of a listed company, capitalization of reserves, or inheritance or gift of shares of a registered foreign-invested company, the report may be filed within 60 days after the acquisition.

3. 03

   3. Bring in the investment funds and incorporate or increase capital — Bring the investment funds in from abroad as reported and pay them in as capital for incorporation or as payment for a capital increase. The investment funds may not be used for purposes other than those reported. Keep the remittance and foreign currency purchase records, as they are used again at the registration stage.

4. 04

   4. Register the foreign-invested company (within 60 days) — Register the foreign-invested company within 60 days from the date the payment of the contribution is completed or the share price is settled. If the 100,000,000 won and 10% shareholding requirements are met, registration is possible even before the payment is completed. The registration certificate may not be transferred or lent to anyone else.

5. 05

   5. Change registration and cancellation — File a change registration if the foreign investment ratio, investment amount, the foreign investor's trade name or nationality, the company's trade name or address, or its business changes, or if shares are transferred. If the foreign investor transfers all shares to Korean nationals or loses all shares through a capital reduction, the registration is cancelled.

Filing route

Filing route

Deadlines & processing notes

Deadlines & processing notes

Fees & official charges

Fees & official charges

Included in the basic fee — Initial document review, required-document guidance, basic form preparation, one filing support and one ordinary supplement.

Conditional success fee — For this service, any conditional success fee may be separately agreed within the lawful service scope and stated in a written engagement agreement. No outcome is guaranteed.

Displayed amounts are starting estimates, not statutory or standard rates. The final fee is confirmed after consultation and document review in the engagement agreement. Government fees and actual expenses may change.

Basic documents

Basic documents

Remitting the investment funds before the report can complicate the procedure, so decide the investment method and timing of the report first. If the trade name, address or investment ratio changes after registration, a change registration is needed so that the certificate matches the actual situation.