(1) Notify Foreign Investment

 

• Why should notify?

 

(a) Remittance shall be guaranteed as the notification clearly shows the purpose of the capital transfer.

(b) Certificate of foreign investment notification is needed when you register incorporation and business.

 

• Where to notify?

 

A designated foreign exchange bank in South Korea

 

• Open a Remittance Account at this step

 

You can use (a) a non-resident account in foreign currency or (b) a temporary account number issued by the designated foreign exchange bank.

We highly recommend (b) a temporary account number because it is required to clearly state the purpose of capital every time the capital is remitted when using a non-resident account.

 

 

(2) Remit Capital into the Account

 

As referred to earlier, the investment capital can be remitted to a non-resident account in foreign currency or a temporary account number.

After the transaction is completed, the bank shall issue a securities subscription deposit certificate which is required when you register the incorporation. 

  

 

(3) Incorporation & Business Registration

 

Firstly, you will register incorporation at a district court within jurisdiction. When registered, a corporation becomes a legal entity that is separate and distinct from its owners.

And then, you will notify and register your business at a tax office within jurisdiction.

 

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(4) Foreign-Invested Company Registration

 

Upon submitting an application, a foreign-invested company registration certificate shall be issued. The certificate is required when you apply for a D-8(business investment) visa. On top of that, the certificate also enables the procedure of overseas remittance of investment profits simplified.

 

• Where to register?

 

A designated foreign exchange bank in South Korea

 

• Why should register?

 

As the purpose of the FOREIGN INVESTMENT PROMOTION ACT is “to promote foreign investment in Korea by providing necessary support and benefit and to contribute to the sound development of the nation's economy”, benefits are given if an investment is the “foreign investment” defined in the law.

 

• What are the benefits?

 

(a) Tax incentives

corporate tax, income tax, acquisition tax, registration tax, property tax and aggregate land tax, may be reduced or exempted

 

(b) Cash grants

A local government and the State may provide cash grants when constructing new factories under certain circumstances (i.e. the effect of technology transfer, the scale of job creation).

 

(c) Lease or sale of State or public property

The State and a local government may allow a foreign-capital invested company to use or profit from land owned by the State, local government at a reasonable price.