FDI (Foreign Direct Investment) refers to an investment made by a foreigner for the purpose of establishing a continued economic relationship with a Korean corporation or a business owned by a Korean citizen, and is based on the FIPA (Foreign Investment Promotion Act) and other related laws.

• Unless otherwise stipulated by law, a foreigner may carry out foreign investment activities in Korea without restrictions.
• Protection of Foreign Investment.
  • Guarantee of outgoing transfers.
  • Exceptions on safeguards against foreign exchange transactions.
  • Ensuring national treatment.
  • Ensuring no discrimination against tax reduction and exemption

• Acquisition of Shares or Equity of a Domestic Business

  This refers to possession of shares or equity of corporation of the Republic of Korea or a business owned by a Korean citizen for the purpose of establishing a continued economic relationship with the relevant corporation or business (including those being established) through participation in managerial activities.

• Long-term Loans

  An investment is recognized as FDI if the foreign parent company of the foreign-invested company, a foreign investor, or a business under a capital investment relationship with the relevant foreign parent company and the foreign investor provides a loan with a maturity of 5 years or more for the relevant foreign-invested company.

• Contribution of a Non-profit Organization (NPO)

  A contribution to an NPO is recognized as a foreign investment when the NPO has independent research facilities in the field of science and technology, and meets one of the following conditions:

  • Having 5 or more regular employees with 3 or more years of research experience and a bachelor's degree in the field of science and technology or with an advanced degree (master's/Ph.D) in a science and technology field; or,
  • Performing R&D for projects attended with high level technologies according to the Tax Exemptions and Exceptions Act.