ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT
Presidential Decree No. 15931, Nov. 14, 1998
Amended by Presidential Decree No. 16330, May 24, 1999
Presidential Decree No. 16583, Oct. 27, 1999
Presidential Decree No. 16720, Feb. 23, 2000
Presidential Decree No. 17137, Feb. 24, 2001
Presidential Decree No. 17135, Feb. 24, 2001
Presidential Decree No. 17474, Dec. 31, 2001
Presidential Decree No. 17686, Jul. 27, 2002
Presidential Decree No. 17851, Dec. 30, 2002
Presidential Decree No. 18039, jun. 30, 2003
Presidential Decree No. 18222, Jan. 13, 2004
Presidential Decree No. 18343, Mar. 29, 2004
Presidential Decree No. 18662, Dec. 31, 2004
Presidential Decree No. 18736, Mar. 8, 2005
Presidential Decree No. 19321, Feb. 8, 2006
Presidential Decree No. 20947, Jul. 29, 2008
Presidential Decree No. 21098, Oct. 29, 2008
Presidential Decree No. 21181, Dec. 24, 2008
Presidential Decree No. 21182, Dec. 24, 2008
Presidential Decree No. 21214, Dec. 31, 2008
Presidential Decree No. 21515, May 29, 2009
Presidential Decree No. 21590, jun. 30, 2009
Presidential Decree No. 21641, Jul. 27, 2009
Presidential Decree No. 21657, Jul. 30, 2009
Presidential Decree No. 21719, Sep. 9, 2009
Presidential Decree No. 21882, Dec. 14, 2009
Presidential Decree No. 21918, Dec. 30, 2009
Presidential Decree No. 22073, Mar. 9, 2010
Presidential Decree No. 22224, jun. 28, 2010
Presidential Decree No. 22426, Oct. 5, 2010
Presidential Decree No. 22815, Apr. 1, 2011
Presidential Decree No. 23297, Nov. 16, 2011
Presidential Decree No. 23993, Jul. 26, 2012
Presidential Decree No. 24442, Mar. 23, 2013
Presidential Decree No. 24502, Apr. 22, 2013
Presidential Decree No. 24585, jun. 11, 2013
Presidential Decree No. 24638, jun. 28, 2013
Presidential Decree No. 25221, Feb. 27, 2014
Presidential Decree No. 25249, Mar. 11, 2014
Presidential Decree No. 25476, Jul. 16, 2014
Presidential Decree No. 25655, Oct. 15, 2014
Presidential Decree No. 25840, Dec. 9, 2014
Presidential Decree No. 26205, Apr. 20, 2015
Presidential Decree No. 26600, Oct. 23, 2015
Presidential Decree No. 26803, Dec. 30, 2015
Presidential Decree No. 27406, Jul. 28, 2016
Presidential Decree No. 27751, Dec. 30, 2016
Presidential Decree No. 27793, Jan. 17, 2017
Presidential Decree No. 27972, Mar. 29, 2017
Presidential Decree No. 28212, Jul. 26, 2017
Presidential Decree No. 29172, Sep. 18, 2018
Presidential Decree No. 30170, Oct. 29, 2019
Presidential Decree No. 30509, Mar. 3, 2020
Presidential Decree No. 30586, Mar. 31, 2020
Presidential Decree No. 30876, Jul. 28, 2020
Presidential Decree No. 30918, Aug. 5, 2020
Presidential Decree No. 31380, Jan. 5, 2021
Presidential Decree No. 31576, Mar. 30, 2021
Presidential Decree No. 31741, jun. 8, 2021
Presidential Decree No. 31811, jun. 22, 2021
Presidential Decree No. 32091, Oct. 21, 2021
Presidential Decree No. 32274, Dec. 28, 2021
Presidential Decree No. 32733, jun. 28, 2022
Presidential Decree No. 33621, Jul. 7, 2023
Presidential Decree No. 33635, Jul. 18, 2023
CHAPTER I GENERAL PROVISIONS
[This Article Wholly Amended on Jul. 30, 2009]
| Article 2 (Definitions of Foreign Investment) |
| 1. | An agency that conducts foreign economic cooperation affairs on behalf of a foreign government; |
| 2. | An international organization that deals with affairs concerning development finance, such as the International Bank for Reconstruction and Development, the International Financial Corporation, and the Asia Development Bank; |
| 3. | An international organization that deals with affairs concerning foreign investment, whether for itself or others. |
| (2) | "Foreign investment" under Article 2 (1) 4 (a) of the Act refers to any of the following and the investment amount is at least 100 million won: Provided, That where a business fails to meet the requirements of the main clause of this paragraph due to partial transfer of stocks or shares (hereinafter referred to as "stocks, etc.") or capital reduction, etc. after it has been registered as a foreign-invested company under Article 21 (1) and (2) of the Act, it shall be also deemed a foreign investment: <Amended on Oct. 5, 2010; Jul. 28, 2016; Aug. 5, 2020> |
| 1. | Where a foreigner owns at least 10/100 of the total number of voting stocks issued by, or of the total equity investment of, a Korean corporation or enterprise (in cases of a corporation, including a corporation in the process of incorporation; hereinafter the same shall apply); |
| 2. | Where a foreigner who owns stocks, etc. of a Korean corporation or enterprise dispatches or appoints an executive officer (referring to a director, a representative director, a managing general partner, an auditor, or a person in a similar position, who has the authority to participate in decision-making for important management matters; hereinafter the same shall apply) to or at such corporation or company. |
| (3) | "Investment amount" in the main clause, with the exception of the subparagraphs, of paragraph (2) means the acquisition price of stocks, etc. (including where a foreign investor owns stocks as a foreign-invested company capitalizes the earned surplus reserve under Article 458 of the Commercial Act, pursuant to Article 461 of that Act) and, where two or more foreigners make a joint investment, it means an amount invested by each person. In such cases, if a decrease in the amount of stocks, etc. held by a foreign investor is made due to capital reduction without any refund of the foreign-invested company, the investment amount at the time of acquisition of stocks, etc. shall be deemed to remain unchanged. <Newly Inserted on Oct. 5, 2010; Dec. 30, 2015> |
| 1. | A company that holds at least 50/100 of the total number of issued stocks, or of the total equity investment of, its overseas parent company; |
| 2. | A foreign-invested company that holds at least 50/100 of the total number of issued stocks, or of the total equity investment of which, is held by its overseas parent company, and which is either of the following: |
| (a) | Company that holds at least 10/100 of the total number of issued stocks, or of the total equity investment of, its overseas parent company; |
| (b) | Company, at least 50/100 of the total number of issued stocks, or of the total equity investment of which, is held by its overseas parent company or a company referred to in subparagraph 1. |
| (5) | "Company that has a capital investment relationship prescribed by Presidential Decree" in Article 2 (1) 4 (b) (iv) of the Act means a company, at least 50/100 of the total number of issued stocks, or of the total equity investment of which, is held by a foreign investor who holds at least 50/100 of the total number of issued stocks, or of the total equity investment of a foreign-invested company. <Amended on Oct. 5, 2010> |
| (6) | "Standards prescribed by Presidential Decree" in Article 2 (1) 4 (c) of the Act means where a foreigner contributes at least 50 million won, accounting for at least 10/100 of the total amount of contributions to a nonprofit corporation that meets all of the following requirements: <Amended on Oct. 5, 2010; Jun. 11, 2013; Jul. 28, 2016> |
| 1. | It shall have an independent research facility; |
| 2. | It shall meet either of the following requirements: |
| (a) | At least five regular workers defined under Article 11 of the Labor Standards Act (hereinafter referred to as “regular worker”) with a bachelor's degrees in the fields of science and technology and at least three years’ research career, or with a master's or higher degree in the fields of science and technology; |
| (b) | Engaging in research and development activities in the fields of natural science or engineering pursuant to the Korean Standard Industrial Classification prepared and publicly notified by the Commissioner of the Statistics Korea under Article 22 of the Statistics Act (hereinafter referred to as “Korean Standard Industrial Classification”). |
| (7) | "Purposes prescribed by Presidential Decree, such as the creation or extension of its factory facilities" in Article 2 (1) 4 (d) of the Act means any of the following: <Newly Inserted on Aug. 5, 2020> |
| 1. | Factory facilities (referring to a workplace where the business operator operates any business, other than the manufacturing business under the Korea Standard Industrial Classification; hereinafter the same shall apply) or research facilities are newly established or expanded; |
| 2. | Where the relevant company purchases capital goods or research equipment and materials necessary to perform its business. |
| (8) | "Standards prescribed by Presidential Decree" in Article 2 (1) 4 (d) of the Act means where a foreigner contributes at least 50 million won which accounts for at least 10/100 of the total amount of contributions to a nonprofit corporation that is either of the following: <Amended on Oct. 5, 2010; Jul. 28, 2016; Aug. 5, 2020> |
| 1. | A nonprofit corporation that has been established with the purposes of promotion, etc. of science, art, medical services, or education, and continuously performs projects for developing experts in the relevant fields and for expanding international exchanges; |
| 2. | Local headquarters of an international organization performing international cooperation projects between civilians or governments. |
| (9) | "Establishments prescribed by Presidential Decree" in Article 2 (1) 7 of the Act means: <Amended on Oct. 5, 2010; Mar. 23, 2013; Aug. 5, 2020> |
| 2. | A general hospital, hospital, dental hospital, oriental medical hospital, intermediate care hospital, medical clinic, dental clinic, oriental medical clinic, and midwifery clinic referred to in Article 3 (2) of the Medical Service Act; |
| 5. | Other facilities determined and publicly notified by the Minister of Trade, Industry and Energy following deliberation by the Foreign Investment Committee (hereinafter referred to as the "Foreign Investment Committee") established under Article 27 of the Act, such as a business incubation center for foreign investors. |
| 1. | Stocks of foreign corporations listed on foreign securities markets; |
| (12) | "Means of domestic payment prescribed by Presidential Decree" in Article 2 (1) 8 (i) of the Act means proceeds from the sale of stocks, etc. and real estate of a Korean corporation or a company run by a national of the Republic of Korea, held by a foreigner pursuant to the Act and the Foreign Exchange Transactions Act. <Amended on Oct. 5, 2010; Aug. 5, 2020> |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 3 (Definition of Individual Who Holds Permanent Residency in Foreign Country) |
| 1. | A person who has acquired permanent residency in the country where he or she resides; |
| 2. | A person who has acquired a resident permit for four or more years in a country without the permanent residency system; |
| 3. | A person who has resided for four or more years and acquired a resident permit for one or more year in a country which grants a resident permit for less than four years only without the permanent residency system. |
[This Article Wholly Amended on Jul. 28, 2016]
| Article 4 (Remittance of Proceeds to Foreign Countries) |
| (2) | The head of a foreign exchange bank may request cooperation, such as verifying information on the relevant foreign investment, from the Minister of Trade, Industry and Energy, the president of the Korea Trade-Investment Promotion Agency, or the head of a foreign exchange bank entrusted with business affairs referred to in the subparagraphs of Article 40 (2) (hereinafter referred to as “head of an entrusted institution”), if necessary to verify the legitimacy of the remittance to a foreign country under paragraph (1). |
| (3) | Upon completion of the remittance to a foreign country prescribed in paragraph (1), the head of a foreign exchange bank shall notify such fact to the Minister of Trade, Industry and Energy or the head of an entrusted institution without delay. |
[This Article Wholly Amended on Jul. 28, 2016]
| Article 5 (Categories of Businesses with Restricted Foreign Investment) |
| (1) | The types of business in which foreign investment is restricted pursuant to Article 4 (3) of the Act and the details of restrictions shall be as follows: <Amended on Mar. 23, 2013; Oct. 15, 2014; Jul. 28, 2016; Aug. 5, 2020; Jun. 22, 2021> |
| 1. | Each of the following publicly notified by the Minister of Trade, Industry and Energy after consultation with the competent Minister, in consideration of the scope of a reservation concerning domestic direct investment by nonresidents set out in Annex 1 (Reservations of the Code of Liberalization of Capital Movements) to the invitation agreements to join the Convention on the Organization for Economic Cooperation and Development for the Republic of Korea, in the Convention on the Organization for Economic Cooperation and Development, and details of a reservation set out in the Annex to the Convention on the Organization for Economic Cooperation and Development concerning bilateral or multilateral investments: |
| (a) | A type of business (hereinafter referred to as "restricted type of business") in which foreign investment is not permitted or is partially permitted; |
| (b) | The ratio of total foreign investment permitted (hereinafter referred to as "ratio of permissible foreign investment") for each type of business in which foreign investment is partially permitted under item (a); |
| (c) | Qualifications of foreign investors and the parties to domestic joint investment; |
| (d) | Other standards for permission, such as the timing of permission for foreign investment; |
| 2. | Matters determined as threats to national security by the Minister of Trade, Industry and Energy following deliberation by the Foreign Investment Committee, upon a request by the competent Minister or the head of an information and investigation agency to review whether a foreign investment that meets all of the following conditions may threaten national security as prescribed in Article 4 (2) 1 of the Act (hereinafter referred to as "threat to national security"): |
| (a) | Where a foreigner intends to acquire de facto control over the management of an existing domestic company by acquiring its stocks, etc.; |
| (b) | Any of the following cases where: |
| (iv) | International efforts of the United Nations, etc. to maintain international peace and security may be substantially and critically hindered; |
| (2) | Notwithstanding paragraph (1) 1, a foreigner may make an investment in a company, of which turnover ratio of a restricted type of business, does not exceed 1/100 of the total turnover, with no restriction prescribed in paragraph (1) 1. |
| (3) | Where the turnover ratio of a restricted type of business of a company falling under paragraph (2) has exceeded 1/100 of the total turnover of the company after a foreigner acquired stocks, etc. of the company, the stocks, etc. acquired in excess of the ratio of permissible foreign investment shall be transferred to a national of the Republic of Korea or a Korean corporation within six months from the settlement date of final accounts of the business year in which such ratio is exceeded: Provided, That the period of transfer may be extended up to six months with the approval of the Minister of Trade, Industry and Energy in inevitable circumstances. <Amended on Mar. 23, 2013> |
| (4) | No foreigner shall make an investment in any company concurrently running both a category of business in which foreign investment is not permitted and a category of business in which foreign investment is partially permitted under paragraph (1) 1 (a), and where intending to make an investment in any company running at least two categories of business in which foreign investment is partially permitted under paragraph (1) 1 (a), he or she is prohibited from making an investment in the company in excess of the ratio of foreign investment in the category of business in which the ratio of permissible foreign investment is lowest. |
| (5) | No competent Minister or head of an information and investigation agency may make a review request under paragraph (1) 2 after 30 days from the date of reporting on the relevant foreign investment under Article 5 (1) through (3) of the Act. <Amended on Jul. 28, 2016; Aug. 5, 2020> |
| (6) | Before reporting on foreign investment under Article 5 (1) through (3) of the Act, a foreigner may request the competent Minister or the Minister of Trade, Industry and Energy to verify whether the relevant foreign investment is eligible for a review request under the items of paragraph (1) 2, upon fulfilling matters publicly notified by the Minister of Trade, Industry and Energy. In such cases, such request for verification made by a foreigner shall be deemed a report on foreign investment for purposes of paragraphs (1) 2, (5), and (7). <Amended on Mar. 23, 2013; Jul. 28, 2016; Aug. 5, 2020> |
| (7) | Where the Minister of Trade, Industry and Energy deems it necessary to examine whether a foreign investment constitutes a threat to national security as prescribed in paragraph (1) 2, he or she may request the competent Minister or the head of an intelligence and investigation agency to report or submit the details or materials investigated to the Foreign Investment Committee in relation to whether the foreign investment constitutes a threat to national security. <Newly Inserted on Aug. 5, 2020> |
| (8) | The Minister of Trade, Industry and Energy shall determine whether the relevant foreign investment constitutes a threat to national security, following deliberation by the Foreign Investment Committee, within 90 days from the date of the review request made by the competent Minister or the head of an information and investigation agency under paragraph (1) 2. In such cases, the Minister of Trade, Industry and Energy may make a determination allowing the foreign investment classified as a threat to national security, imposing such conditions as dividing and selling a specific part of business or maintaining security, following deliberation by the Foreign Investment Committee, where deemed necessary. <Amended on Mar. 23, 2013; Aug. 5, 2020> |
| (9) | If the Minister of Trade, Industry and Energy makes a determination under paragraph (8), he or she shall, without delay, give a notice of approval or disapproval on the acquisition of stocks, etc. by the relevant foreigner, and publicly announce the following matters, except for State secrets: <Amended on Mar. 23, 2013; Aug. 5, 2020> |
| 1. | Whether such foreign investment constitutes a threat to national security; |
| 2. | Grounds for such determination; |
| 3. | The details of conditions (if imposed under the latter part of paragraph (8)). |
| (10) | Where the Minister of Trade, Industry and Energy has made a determination under the former part of paragraph (8) that a foreign investment constitutes a threat to national security, the relevant foreigner who has already acquired stocks, etc. of companies with the foreign investment shall transfer such stocks, etc. to a national of the Republic of Korea, a Korean Corporation, or a foreigner who poses no threat to national security (hereinafter referred to as "Korean national, etc.") within six months from the date of such determination; where the Minister has made a determination on conditional approval for investment pursuant to the latter part of paragraph (8), the relevant foreigner shall transfer such stocks, etc. to a Korean national, etc. within six month from the date the Minister becomes aware of a violation of the relevant conditions: Provided, That the period of such transfer may be extended up to one year with the approval of the Minister of Trade, Industry and Energy in inevitable circumstances. <Amended on Mar. 23, 2013; Aug. 5, 2020> |
| (11) | Where any details of restrictions on foreign investment publicly announced by the Minister of Trade, Industry and Energy in the preceding year under Article 4 (4) of the Act are modified or added, the head of a relevant administrative agency shall compile such modifications or additions as at January 1 and notify the Minister of Trade, Industry and Energy thereof by the end of January, and the Minister of Trade, Industry and Energy shall compile and publicly announce them by the last day of February each year. <Amended on Mar. 23, 2013; Aug. 5, 2020> |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 5-2 (Requests for Data Necessary for Formulating Plans to Stimulate Foreign Investment) |
"The heads of relevant financial institutions prescribed by Presidential Decree" in Article 4-2 (5) of the Act means the heads of financial institutions (limited to requests for data constituting the details determined by Minister of Trade, Industry and Energy in prior consultation with the Minister of Economy and Finance or the Chairperson of the Financial Services Commission) determined by the Governor of the Bank of Korea (limited to requests for data on the current status of receipt of remuneration for supply of technology by kind) and the Minister of Trade, Industry and Energy after consultation with the Minister of Economy and Finance or the Chairperson of the Financial Services Commission. <Amended on Oct. 5, 2010; Mar. 23, 2013> [This Article Wholly Amended on Jul. 30, 2009]
CHAPTER II PROCEDURES FOR FOREIGN INVESTMENT
| Article 6 (Reporting on Foreign Investment) |
| (1) | "Specially related persons prescribed by Presidential Decree" in Article 5 (1) and the former part of Article 6 (1) of the Act means any of the following persons: |
| 1. | Spouse and lineal ascendants and descendants of the relevant foreigner (including lineal ascendants and descendants of the spouse of the relevant foreigner); |
| 2. | A foreign corporation where the relevant foreigner and persons in such relationship as prescribed in subparagraph 1 or 3 together hold at least 50/100 of the total number of issued stocks or the total equity investment, or a foreign corporation virtually controlled by the relevant foreigner and said persons; |
| 3. | Employees of the relevant foreigner and persons prescribed in subparagraph 2 or 4 (referring to executive officers in the case of a corporation; in the case of an individual, they shall refer to trade employees, other employed persons through an employment contract, or persons who maintain their livelihood by means of money or property of the individual); |
| 4. | A foreign corporation where such a corporation prescribed in subparagraph 2, the relevant foreigner, and persons prescribed in subparagraphs 1 and 3 together hold at least 50/100 of the total number of issued stocks or the total equity investment. |
| (2) | Where a report on modification filed under Article 5 (3) of the Act contains matters concerning early redemption of loans, the Minister of Trade, Industry and Energy shall, without delay, notify the details of such report to the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the Special Metropolitan City Mayor, Metropolitan City Mayors, the Special Self-Governing City Mayor, Do Governors, and the Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor"). In such cases, the Mayors/Do Governors shall, without delay, notify the head of the agency that manages the relevant foreign investment zone of the details, as prescribed in Article 18-3 (1) of the Act. <Amended on Aug. 5, 2020> |
[This Article Wholly Amended on Jul. 28, 2016]
| Article 7 (Permission of Foreign Investment) |
| (2) | The processing period for determining whether to grant permission pursuant to Article 6 (2) of the Act shall be 15 days from the date of receiving an application for permission: Provided, That such processing period may be extended by up to 15 days only on one occasion in inevitable circumstances. |
| (3) | Where the Minister of Trade, Industry and Energy deems that an application for permission for foreign investment filed under Article 6 (1) of the Act needs supplementing or correcting, he or she may require the relevant applicant to supplement or correct the application within a prescribed period for such supplement or correction. In such cases, the period spent for supplementing or correcting any information on the application shall be disregarded for the purpose of calculating the processing period referred to paragraph (2). |
| (4) | The Minister of Trade, Industry and Energy shall request the Minister of National Defense to consult on an application for permission for foreign investment under Article 6 (1) of the Act pursuant to paragraph (3) of that Article, and the Minister of National Defense in receipt of such request for consultation shall present his or her opinions on the application to the Minister of Trade, Industry and Energy within 10 days of receipt of such request. |
| (5) | Where the Minister of National Defense in receipt of the request pursuant to paragraph (4) deems that defense materials produced by a defense industry company applied for permission are replaceable by products of other domestic companies or that granting permission will not significantly affect national security, he or she shall consent to granting of such permission. |
| (6) | In presenting his or her opinions under paragraph (4), the Minister of National Defense may request that the Minister of Trade, Industry and Energy grant permission on either of the following conditions: |
| 1. | Conditions necessary for continuous production of the relevant defense materials and for the maintenance of security; |
| 2. | The condition of dividing and selling defense industry facilities defined under subparagraph 11 of Article 3 of the Defense Acquisition Program Act (hereinafter referred to as “defense industry facilities”) to a national of the Republic of Korea or a Korean corporation. |
| (7) | Where permission is granted on the condition prescribed in paragraph (6) 2, a foreigner who has acquired the stocks, etc. before the sale of the defense industry facilities completes shall not participate in the management of the relevant defense industry company. <Amended on Aug. 5, 2020> |
| (8) | Pursuant to Article 6 (6) of the Act, the Minister of Trade, Industry and Energy shall order a person who has acquired stocks, etc. in violation of Article 6 (1) or (4) of the Act to transfer such stocks, etc. to a national of the Republic of Korea or a Korean corporation within one month from the date he or she becomes aware of the violation. In such cases, the period for transfer shall be determined by the Minister of Trade, Industry and Energy within six months and such period may be extended by up to six months where it is acknowledged that inevitable circumstances exist. <Amended on Aug. 5, 2020> |
[This Article Wholly Amended on Jul. 28, 2016]
| Article 8 Deleted. <Jul. 28, 2016> |
CHAPTER III MEASURES FOR SUPPORTING FOREIGN INVESTMENT
| Article 9 Deleted. <May 24, 1999> |
| Article 10 Deleted. <May 24, 1999> |
| Article 11 Deleted. <May 24, 1999> |
| Article 12 Deleted. <May 24, 1999> |
| Article 13 Deleted. <May 24, 1999> |
| Article 14 Deleted. <May 24, 1999> |
| Article 15 Deleted. <May 24, 1999> |
| Article 16 Deleted. <May 24, 1999> |
| Article 17 Deleted. <May 24, 1999> |
| Article 18 Deleted. <May 24, 1999> |
| Article 19 (Lease of State or Public Property) |
| (1) | “Companies meeting the minimum foreign investment ratio prescribed by Presidential Decree” in the main clause of Article 13 (2) of the Act means any foreign-invested company, at least 30 percent of the total number of voting stocks or total equity investment of which, is owned by a foreign investor. For the purpose of calculating the minimum foreign investment ratios, the stockholding ratio computed by the calculation methods provided for in Article 116-2 (11) and (12) of the Enforcement Decree of the Act on Restriction on Special Cases concerning Taxation shall not be included in the case of a foreign corporation, the stocks or equity investment of which is directly or indirectly owned by a national of the Republic of Korea (excluding those falling under Article 3) or a Korean corporation. <Newly Inserted on Jun. 11, 2013; Jul. 28, 2016> |
| (3) | “Number of regular workers prescribed by Presidential Decree” in Article 13 (2) 1 of the Act means the number of regular workers referred to in Article 20-2 (4) and attached Table 2, and “investment amount prescribed by Presidential Decree” in Article 13 (2) 2 of the Act means the amount of foreign investment provided for in Article 25 (1). <Amended on Jul. 28, 2016; Aug. 5, 2020> |
| (4) | The rents for land, etc. referred to in Article 13 (5) of the Act shall be the amount computed by multiplying the value of such land, etc. by the rate of at least 10/1,000: Provided, That the rent rates for land, etc. in the area referred to in Article 18 (1) 1 of the Act, designated as a foreign investment zone pursuant to the former part of that paragraph, shall be as follows: <Amended on Mar. 23, 2013; Jun. 11, 2013> |
| 1. | If the relevant land, etc. is State property, the rates determined by the Minister of Trade, Industry and Energy after consulting the Minister of Economy and Finance; |
| 2. | If the relevant land, etc. is public property, the rates determined by the Minister of Trade, Industry and Energy after consulting the head of the local government that is the owner of such land, etc. |
| (5) | Deleted. <Aug. 5, 2020> |
| (6) | "Foreign-invested company that runs a business prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 13-2 (1) of the Act means any company that builds a new factory facility to run any of the following businesses: <Amended on Mar. 23, 2013; Jun. 11, 2013; Oct. 15, 2014; Jul. 28, 2016; Aug. 5, 2020; Jul. 18, 2023> |
| 1. | Any of the following businesses that make a substantial contribution to the national economy, such as employment growth: |
| (a) | A business run by a foreign-invested company in any of the zones prescribed in subparagraphs 2 through 4 of Article 18 (1) the Act, designated as a foreign investment zone under the former part, with the exception of the subparagraphs, of that paragraph; |
| (c) | A business in which a foreign investment of at least five million U.S. dollars has been made, and which intends to be engaged in manufacturing (referring to the manufacturing business under the Korean Standard Industrial Classification; hereinafter the same shall apply); |
| (d) | A business which meets all of the following conditions: |
| (i) | The amount of foreign investment shall be at least 2.5 million U.S. dollars; |
| (ii) | The number of regular workers shall be 70 or more; |
| (iii) | It shall run a business provided for in any of subparagraph 1 through 3 of Article 25 (1) or a facility referred to in subparagraph 4 of that paragraph; |
| 2. | A business that makes a substantial contribution to the expansion of social overhead capital, industrial restructuring, financial independence of local governments, etc., which is determined by the Minister of Trade, Industry and Energy following deliberation by the Foreign Investment Committee. |
| (7) | "Repatriating enterprise in a non-Seoul metropolitan area that runs a business prescribed by Presidential Decree" in the provision, with the exception of the subparagraphs, of Article 13-2 (1) of the Act means repatriating enterprises running any of the following business: <Newly Inserted on Jun. 22, 2021> |
| 1. | Any of the following businesses that make a substantial contribution to the national economy, such as employment growth: |
| (a) | A business whose amount of investment related to repatriation (hereinafter referred to as "amount of investment for repatriation") calculated by the method prescribed and publicly notified by the Minister of Trade, Industry and Energy, including the amount of purchase of land and investment in facilities, is at least one billion won: |
| (i) | A product or service that utilizes advanced technologies under Article 5 (1) of the Industrial Development Act or a business producing advanced products under that paragraph (limited to those recognized as advanced technologies or advanced products, as determined and publicly notified by the Minister of Trade, Industry and Energy); |
| (b) | A manufacturing business with an amount of repatriation investment of at least five billion won; |
| (c) | A business which meets all the following requirements: |
| (i) | The amount of repatriation investment shall be at least 2.5 billion won; |
| (ii) | The number of regular workers in workplaces newly established or expanded in Korea shall be 70 or more; |
| (iii) | It shall operate any of the following business or facilities: |
| a. | Manufacturing business; |
| b. | Computer programing, system integration, and maintenance business under the Korean Standard Industrial Classification; |
| c. | Data processing, hosting (referring to services such as lease or operation of servers), and other related service activities out of information service business under the Korean Standard Industrial Classification; |
| d. | Facilities which meet all the requirements referred to in the items of Article 25 (1) 4; |
| 2. | A business that makes a substantial contribution to the expansion of social overhead capital, industrial restructuring, financial independence of local governments, etc., which is determined by the Minister of Trade, Industry and Energy, subject to deliberation by the Committee for Assisting Repatriating Enterprises established under Article 6 of the Act on Assistance to Korean Offshore Enterprises in Repatriation. |
| (8) | The reduction or exemption rate of rents for State-owned land, etc. under Article 13-2 (1) of the Act shall be determined by the head of the central government agency having the jurisdiction of the State-owned land, etc. (including persons to whom duties have been delegated or entrusted pursuant to Article 28 or 42 (1) of the State Property Act; hereinafter the same shall apply) within the limit set forth below: <Amended on Apr. 1, 2011; Jun. 11, 2013; Oct. 15, 2014; Apr. 20, 2015; Jul. 28, 2016; Mar. 31, 2020; Aug. 5, 2020; Jun. 22, 2021> |
| (a) | 100/100 of rents for the relevant land, etc. in the case of the following businesses: |
| (i) | A business run by a foreign-invested company in a foreign investment zone designated under Article 18 (1) 2 of the Act out of businesses provided for in paragraph (6) 1 (a), and a business provided for in paragraph (6) 1 (b) or (7) 1 (a); |
| (iii) | A business with at least 200 regular workers, of the businesses provided for in paragraph (6) 1 (d) or (7) 1 (c); |
| (b) | 90/100 of rents for the relevant land, etc. in the case of a business with at least 150 but no more than 200 regular workers, of the businesses provided for in paragraph (6) 1 (d) or (7) 1 (c); |
| (c) | 75/100 of rents for the relevant land, etc. in the case of the following businesses: |
| (i) | A business prescribed in paragraph (6) 1 (c) [excluding a business eligible for reduction or exemption under item (a) (ii)] or a business prescribed in paragraph (7) 1 (b); |
| (ii) | A business with at least 70 but no more than 150 regular workers, of the businesses provided for in paragraph (6) 1 (d) or (7) 1 (c); |
| (iii) | A business referred to in paragraph (6) 2 or paragraph (7) 2; |
| (d) | 50/100 of rents for the relevant land, etc. in the case of a business run by a foreign-invested company in a foreign investment zone designated under Article 18 (1) 3 or 4 of the Act among the businesses provided for in paragraph (6) 1 (a); |
| (9) | The reduction or exemption rate of rents for State-owned land, etc. under Article 13-2 (2) of the Act shall be determined by the head of the central government agency having the jurisdiction over the relevant State property within 100/100. <Amended on Apr. 1, 2011; Jun. 11, 2013; Aug. 5, 2020; Jun. 22, 2021> |
| (10) | A foreign-invested company, a repatriating enterprise in a non-Seoul metropolitan area, or an operator of a facility Improving Foreign Investment Environment who intends to receive a rent reduction or exemption for land, etc. owned by the State under Article 13-2 (1) or (2) shall file an application for such reduction or exemption with the head of the central government agency having jurisdiction over the relevant State property; <Amended on Apr. 1, 2011; Jun. 11, 2013; Aug. 5, 2020; Jun. 22, 2021> |
| (11) | A foreign-invested company or operator of establishments built to improve a foreign-investment environment (hereafter in this Article, referred to as "foreign-invested company, etc.") who intends to receive a rent reduction or exemption for land, etc. owned by a local government under Article 13-2 (3) of the Act shall file an application for such reduction or exemption with the head of the relevant local government; <Amended on Jun. 11, 2013; Aug. 5, 2020; Jun. 22, 2021> |
| (12) | A foreign-invested company, etc. that intends to receive a rent reduction or exemption for land, etc. owned by a local government pursuant to Article 13-2 (3) of the Act shall meet both of the following requirements: <Newly Inserted on Jul. 28, 2016; Aug. 5, 2020; Jun. 22, 2021> |
| 1. | When the foreign-invested company, etc. falls under the main clause of Article 13 (2) of the Act: it shall meet the minimum foreign investment ratio referred to in paragraph (1) during the lease term: Provided, That it shall maintain the foreign investment ratio at 10/100 or higher when domestic capital increases without any decrease of the amount of foreign investment after concluding a contract; |
| 2. | When the foreign-invested company, etc. falls under the proviso of Article 13 (2) of the Act: it shall maintain the foreign investment ratio at 10/100 or higher. |
| (13) | Except as provided in paragraphs (11) and (12), specific matters, such as the types of businesses eligible for rent reductions or exemptions for land, etc. owned by a local government, the reduction or exemption rate of rents, shall be determined by municipal ordinance of a local government, taking into account the economic effects of the relevant foreign investment, such as the creation of employment, the transfer of technology, and the effect on the financial independence of the relevant local government. <Amended on Jun. 11, 2013; Jul. 28, 2016; Jun. 22, 2021> |
| (14) | Upon receipt of an application for a rent reduction or exemption for land, etc. owned by the State or a local government filed under paragraph (10) or (11), the head of the central government agency or the head of the local government having the jurisdiction of such State-owned property shall determine whether to grant a rent reduction or exemption to the relevant applicant after reviewing whether the application meets the requirements for reduction or exemption prescribed in paragraphs (6) through (9) and (12), and verify if the relevant foreign-invested company remains in compliance with the requirements for reduction or exemption at least once a year. <Newly Inserted on Jul. 28, 2016; Jun. 22, 2021> |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 19-2 (Sale of State or Public Property) |
| (1) | "A company which satisfies the minimum foreign investment ratio prescribed by Presidential Decree" in the main clause of Article 13-3 (2) of the Act means a company which satisfies the requirements under Article 19 (1). |
| (3) | The deferred payment of the purchase price of land, etc. or the payment in installments under Article 13-3 (3) of the Act shall be made by the methods referred to in the following subparagraphs. In such cases, the applicable interest rate shall not exceed four percent per annum: |
| 1. | Where the relevant land, etc. is owned by the State: Payment may be deferred up to one year or payment in installments up to 20 years may be allowed; |
| 2. | Where the relevant land, etc. is owned by a local government: Payment may be deferred or made in installments, as prescribed by municipal ordinance. |
[This Article Newly Inserted on Aug. 5, 2020]
| Article 20 (Criteria for Support to Local Governments) |
| (1) | The criteria for financial support to be provided by the State to a local government in accordance with Article 14 (1) of the Act shall be determined by the Foreign Investment Committee after taking a comprehensive account of the potential economic effects that will be brought about by the foreign investment concerned, such as the creation of employment and the transfer of technology, and the region which the relevant foreign-invested company will move into. |
| (2) | The head of a central administrative agency who has received a request for financial support by a local government shall render support as requested in accordance with the criteria for financial support as determined by the Foreign Investment Committee. |
| 1. | Employment subsidy that is paid according to the creation scale of new employment of a foreign-invested company; |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 20-2 (Uses of Cash Grants for Foreign Investment) |
| (1) | "Ratio prescribed by Presidential Decree" in the provision, with the exception of the subparagraphs, of Article 14-2 (1) of the Act means 30/100. <Newly Inserted on Aug. 5, 2020> |
| (2) | "Uses prescribed by Presidential Decree, including the creation or extension of factory facilities" in the provision, with the exception of the subparagraphs, of Article 14-2 (1) of the Act means any of the following uses: <Amended on Oct. 5, 2010; Aug. 5, 2020> |
| 1. | Purchase costs of, or rents for, land or buildings for establishing a factory facility or research facility; |
| 2. | Building costs of a factory facility or research facility; |
| 3. | Purchase costs of capital goods, research equipment and materials to be used for projects or research at a factory facility or research facility; |
| 4. | Installation costs of infrastructure, such as electricity and communications facilities necessary for establishing a factory facility or research facility; |
| 5. | Employment subsidies or education and training subsidies. |
| (3) | "Materials, components, and equipment ... prescribed by Presidential Decree" in Article 14-2 (1) 3 of the Act means materials, components, and equipment as defined in Article 2 of the Enforcement Decree of the Act on Special Measures for Strengthening the Competitiveness of Materials, Components, and Equipment Industries. <Amended on Oct. 15, 2014; Apr. 20, 2015; Mar. 31, 2020; Aug. 5, 2020> |
| (4) | The number of regular workers referred to in Article 14-2 (1) 4 of the Act shall be as specified in attached Table 2. <Amended on Aug. 5, 2020> |
| (5) | "Standards prescribed by Presidential Decree" in Article 14-2 (1) 6 of the Act means where a foreign investor falls under any of the following cases: <Amended on Mar. 11, 2014; Oct. 15, 2014; Sep. 18, 2018; Aug. 5, 2020; Jul. 7, 2023; Jul. 18, 2023> |
| 1. | Where the foreign investor, in its capacity as a domestic corporation that serves as a support and control tower for at least two foreign corporations in terms of their production, sales, distribution, personnel affairs, and other core corporate functions, establishes a local headquarters in the Republic of Korea that meets the criteria and procedure requirements prescribed by Ordinance of the Ministry of Trade, Industry and Energy on regular workers, holding company, etc.; |
| 2. | Where the foreign investor engages in a local specialized industry defined in subparagraph 6 of Article 2 of the Special Act on Local Autonomy, Decentralization and Balanced Regional Development or mega-region industry defined in subparagraph 8 of that Article, and such industry is deemed likely to contribute to developing the regional economy; |
| 4. | Where the foreign investor intends to replace the existing factory facilities with new ones falling under any of the following, which are deemed to meet the standards publicly notified by the Minister of Trade, Industry and Energy and to significantly contribute to the development of the domestic industry and technology: |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 20-3 (Applications for, and Payment of, Cash Grants for Foreign Investment) |
| (1) | A foreigner who intends to obtain a cash grant from the State pursuant to Article 14-2 (1) of the Act shall file an application for cash grant in the form prescribed by Ordinance of the Ministry of Trade, Industry and Energy, which shall be accompanied by an investment plan that includes the following matters, with the Minister of Trade, Industry and Energy: <Amended on Mar. 23, 2013; Jul. 28, 2016> |
| 1. | Total amount of investment and details thereof; |
| 3. | Effects of technological diffusion; |
| 4. | Level of contribution to the local economy; |
| 5. | Other matters determined by the Minister of Trade, Industry and Energy. |
| (2) | Upon receipt of an application filed under paragraph (1), the Minister of Trade, Industry and Energy shall evaluate the investment plan and consult with the Minister of Economy and Finance on whether to award a cash grant, the grant amount, etc. after negotiating with the relevant foreigner. <Amended on Mar. 23, 2013; Dec. 30, 2015> |
| (3) | The Minister of Trade, Industry and Energy may pay a cash grant in lump sum within one year from the date on which a decision to award the cash grant is made, or in up to 10 installments within five years from the date of such decision. <Amended on Mar. 23, 2013> |
| (4) | Where the Minister of Trade, Industry and Energy pays a cash grant in installments under paragraph (3), he or she may adjust the amount and timing for the cash grant paid in installments, taking into account any modification to the investment plan and the outcomes of executing the cash grant paid in installments. <Amended on Mar. 23, 2013> |
| (5) | Except as provided for in paragraphs (1) through (4), matters necessary for providing cash grants and other matters shall be determined by the Minister of Trade, Industry and Energy following deliberation by the Foreign Investment Committee. <Amended on Mar. 23, 2013> |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 20-4 (Cancellation, Withdrawal, Reduction, and Recovery of Cash Grants for Foreign Investment) |
| (1) | "Where an applicant ... files the application by fraud or other improper means or any other ground prescribed by Presidential Decree occurs" in Article 14-2 (5) of the Act means any of the following: |
| 1. | Where an applicant files an application for cash grants by fraud or other improper means; |
| 2. | Where the duties under the contract for cash grant are not performed; |
| 3. | Where it is no longer possible for the corporation or enterprise to engage in the relevant business during the contract period due to the bankruptcy, closure, or the like. |
| (2) | Matters necessary for the methods and procedures for cancellation, withdrawal, reduction, recovery, etc. of cash grants for the applicant and other matters shall be determined and publicly notified by the Minister of Trade, Industry and Energy following deliberation by the Foreign Investment Committee. |
[This Article Newly Inserted on Aug. 5, 2020]
| Article 21 (Administration of Foreign Investment Support Center) |
| (1) | Public officials or executive officers or employees of a foreign investment-related agency who have been dispatched to the Foreign Investment Support Center (hereinafter referred to as the "Investment Support Center") under Article 15 (2) of the Act (hereinafter referred to as "dispatched officers") shall be subject to direction and supervision by the president of the Korea Trade-Investment Promotion Agency with respect to their services. <Amended on Jul. 30, 2009> |
| (2) | The president of the Korea Trade-Investment Promotion Agency shall prepare a written opinion on performance evaluation of the public officials dispatched under paragraph (1) in accordance with Article 17 (3) of the Regulations on Performance Evaluation of Public Officials or Article 31-3 (3) of the Decree on the Appointment of Local Public Officials, and forward the written opinion to the heads of the relevant administrative agencies to which such public officials belong, and the heads of the relevant administrative agencies in receipt of such written opinions shall take them into consideration when evaluating the performance of the relevant public officials. <Amended on Jul. 30, 2009> |
| (3) | In order to efficiently perform foreign investment supporting affairs, the president of the Korea Trade-Investment Promotion Agency may operate a general administrative support center that mainly consist of dispatched officers and teams exclusively responsible for foreign investment inducement that mainly consist of officers and employees of the Korea Trade-Investment Promotion Agency, and may require the dispatched officers to concurrently perform the duties of the staff in exclusive charge of complaint settlement pursuant to Article 21-4 (5). <Amended on Jul. 30, 2009; Oct. 5, 2010> |
| (4) | The president of the Korea Trade-Investment Promotion Agency shall prepare an annual comprehensive plan for foreign investment inducement and submit it to the Minister of Trade, Industry and Energy by January 31 each year, and shall analyze quarterly foreign investment achievements and report the results thereof to the Minister of Trade, Industry and Energy within one month after the expiration of each quarter. <Amended on Jul. 30, 2009; Mar. 23, 2013> |
| (5) | Deleted. <Oct. 27, 1999> |
| (6) | Deleted. <Oct. 27, 1999> |
| (7) | Deleted. <Oct. 27, 1999> |
| (8) | Except as provided in paragraphs (1) through (4), matters necessary for the organization and operation of the Investment Support Center shall be determined by the president of the Korea Trade-Investment Promotion Agency following deliberation by the Foreign Investment Committee. <Amended on Jul. 30, 2009> |
| Article 21-2 (Designation and Duties of Project Managers) |
| (1) | The president of the Korea Trade-Investment Promotion Agency may designate any of the following persons as a project manager for each foreign investor or each foreign-invested company in order to render efficient support to investment affairs of a foreign investor or foreign-invested company. In such cases, the president of the Korea Trade-Investment Promotion Agency shall notify the relevant foreign investor or foreign-invested company of the designated project manager: |
| 1. | Employees of the Korea Trade-Investment Promotion Agency; |
| 3. | Public officials or employees of a central administrative agency, local government, and public institution provided for in the Act on the Management of Public Institutions (hereinafter referred to as "public institution") related to foreign investment. In such cases, he or she shall obtain approval from the head of the relevant agency, government or institution. |
| (2) | The president of the Korea Trade-Investment Promotion Agency may notify the central administrative agency, local governments and public institutions in charge of foreign investment-related affairs (referred to as "related administrative agencies, etc." hereafter in this Article) of the project manager designated for each foreign investor or foreign- invested company under paragraph (1) (hereinafter referred to as "project manager"). |
| (3) | The related administrative agencies, etc. upon receipt of the notification under paragraph (2) shall positively cooperate therewith when a project manager requests cooperation with respect to the provision of materials and handing of civil affairs related to a foreign investment. |
| (4) | A project manager shall perform the following duties: |
| 1. | Collection and provision of data or information and arranging interviews at the request of a foreign investor or foreign- invested company; |
| 4. | Assistance in resettlement of the officers, employees and their families of a foreign investor or foreign- invested company, such as housing rental and guidance for school admission; |
| 5. | Other affairs related to foreign investments. |
| (5) | The president of the Korea Trade-Investment Promotion Agency may constitute and operate a consultative council for support purposes with foreign investors, related administrative agencies, etc., if necessary to ensure that project managers efficiently perform their duties specified in paragraph (4). <Newly Inserted on Dec. 30, 2015> |
| (6) | The president of the Korea Trade-Investment Promotion Agency shall provide project managers with opportunities for education necessary to improve their quality and expertise. <Amended on Dec. 30, 2015> |
| (7) | The president of the Korea Trade-Investment Promotion Agency may accord preferential treatment to project managers in relation to promotion, transfer, and reward. <Amended on Dec. 30, 2015> |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 21-3 (Functions of Foreign Investment Ombudsman) |
| (1) | The term of office of a foreign investment ombudsman commissioned under Article 15-2 (1) of the Act (hereinafter referred to as the "foreign investment ombudsman") shall be three years. <Amended on Oct. 5, 2010> |
| (2) | A foreign investment ombudsman shall perform the following duties: <Amended on Oct. 5, 2010> |
| 1. | Investigation and handling of complaints from foreign investors and foreign-invested companies; |
| 2. | Preparation of policy measures for improving a foreign investment system and recommendation on the implementation thereof to the relevant administrative agencies and public agencies; |
| 3. | Other necessary matters for handling complaints from foreign investors and foreign-invested companies. |
| 1. | Where it is necessary for investigating whether a foreign investment-related system complies with international practices or standards; |
| 2. | Where it is necessary for tackling difficulties experienced by foreign-invested companies in their management or improving the related systems; |
| 3. | Where it is necessary for improving the living conditions of foreign investors and foreigners working for foreign-invested companies. |
| (4) | A recommendation for corrective measures under Article 15-2 (4) of the Act (hereafter referred to as "recommendation for corrective measures" in this Article) shall be made in a document specifying the following matters: <Newly Inserted on Oct. 5, 2010> |
| 1. | Current status and problems of related statutes and regulations, systems, and policies; |
| 2. | Details of recommendation for corrective measures; |
| 3. | Matters recognized by the foreign investment ombudsman as being necessary, such as the reply deadline for related administrative agencies and public agencies. |
| (6) | The foreign investment ombudsman may check and inspect the performance of the details of recommendations for corrective measures. <Newly Inserted on Oct. 5, 2010; Jun. 11, 2013> |
| (7) | The foreign investment ombudsman shall prepare an annual report including the following matters pursuant to Article 15-2 (7) of the Act and submit it to the Foreign Investment Committee by the end of February of the following year: <Newly Inserted on Jun. 11, 2013> |
| 1. | Current status of the regulations and systems raised as grievances by foreign investors and foreign-invested companies; |
| 2. | Results of improvement of the regulations and systems by the foreign investment ombudsman in the previous year; |
| 3. | Other matters concerning supportive activities to tackle grievances of foreign investors and foreign-invested companies. |
[This Article Wholly Amended on Jul. 30, 2009]
[Moved from Article 21-4; previous Article 21-3 moved to Article 21-4 <Oct. 5, 2010>]
| Article 21-4 (Operation of Grievance Committee) |
| (1) | Deleted. <Feb. 24, 2001> |
| (2) | The foreign investment ombudsman shall be the head of the grievance committee established under Article 15-2 (10) of the Act (hereinafter referred to as "grievance committee"). <Amended on Oct. 5, 2010; Jun. 11, 2013> |
| (3) | The head of the grievance committee may request cooperation from a relevant administrative agency or a foreign-investment related agency to settle complaints from foreign investors and foreign-invested companies. In such cases, the agency upon receipt of a request for cooperation shall present the results of resolving complaints or its opinion on such matters within seven days after receipt of the request. <Amended on Jul. 30, 2009; Oct. 5, 2010> |
| (4) | Deleted. <Dec. 31, 2001> |
| (5) | In order to efficiently settle complaints from foreign investors and foreign-invested companies, the head of the grievance committee may designate the staff in exclusive charge of settling complaints for each region or foreign-invested company, and may administer such staff. <Amended on Oct. 5, 2010> |
| (6) | Where an employee belonging to the grievance committee hears opinions or visits a site under Article 15-2 (3) of the Act to support the duties of the foreign investment ombudsman, he or she shall carry identification indicating his or her authority and present it to relevant persons. <Newly Inserted on Oct. 5, 2010> |
| (7) | The head of the grievance committee shall analyze the results of settling complaints raised by foreign-invested companies on a quarterly basis and report them to the Minister of Trade, Industry and Energy within one month after expiration of each quarter. <Amended on Jul. 30, 2009; Mar. 23, 2013> |
| (8) | Except as provided for in paragraphs (2), (3), (5), (6), and (7), matters necessary for the organization and operation of the grievance committee shall be determined by the president of the Korea Trade-Investment Promotion Agency following deliberation by the Foreign Investment Committee. <Amended on Jul. 30, 2009; Oct. 5, 2010> |
[This Article Newly Inserted on Oct. 27, 1999]
[Moved from Article 21-3; previous Article 21-4 moved to Article 21-3 <Oct. 5, 2010>]
| Article 22 (Responsibilities of Foreign Investment Promotion Offices) |
| 1. | Encouragement and verification of the proper treatment of civil petitions transmitted in accordance with Article 17 (3) of the Act; |
| 2. | The discharge of civil petition duties on behalf of others, such as preparation and submission of civil petition documents concerning foreign investment; |
| 3. | Inducement of, advertisement on, and support for foreign investment; |
| 4. | Receipt, examination, and resolution of difficulties suffered or propositions expressed by foreign investors or foreign-invested companies; |
| 5. | Exchange of information, communication for business purposes, and administrative cooperation with the Investment Support Center, the trade centers, branches and offices of the Korea Trade-Investment Promotion Agency, and other agencies related to the inducement of foreign investment; |
| 6. | Examination of the legitimacy of reasons for refusal to grant permission as notified in accordance with the latter part of Article 17 (5) of the Act; |
| 7. | Operation of the Foreign Investment Inducement Council as prescribed in Article 23; |
| 8. | Other kinds of administrative support concerning foreign investment. |
| (2) | Every foreign investment promotion official shall, upon receipt of a request from the head of a grievance committee to submit the current status of the receipt, examination and resolution of difficulties prescribed in paragraph (1) 4, cooperate with the head of the grievance committee by submitting it within 10 days after the end of every quarter. <Amended on Oct. 5, 2010> |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 23 (Foreign Investment Inducement Council) |
| (1) | In order to deliberate and decide on the following matters, a Foreign Investment Inducement Council (hereinafter referred to as the "Council") may be established in the Special Metropolitan City, a Metropolitan City, the Special Self-Governing City, a Do, and the Special Self-Governing Province (hereinafter referred to as "City/Do"): <Amended on Oct. 15, 2014> |
| 1. | A plan to induce, publicize and support foreign investments; |
| 2. | Consultation for settling grievances of foreign investors or foreign-invested companies; |
| 3. | Matters concerning consultation for proper handling of civil petitions as prescribed in Article 17 of the Act; |
| 4. | Other matters deemed necessary by the Mayor/Do Governor for inducing foreign investments. |
| (2) | A public official in the position of director or higher position among those who belong to the City/Do shall serve as the chairperson of the Council, and the following persons shall serve as the members thereof: |
| 1. | Persons designated by the Mayor/Do Governor from among the public officials of the City/Do; |
| 2. | From among the public officials or other employees of the competent Si/Gun/Gu (Gu refers to an autonomous Gu) or special local administrative agency or of agencies related to the handling of civil petitions as prescribed in attached Tables 1 and 2 of the Act, persons designated by the head of the competent Si/Gun/Gu (the head of a Gu refers to the head of autonomous Gu; hereinafter the same shall apply), the head of the competent special local administrative agency, or the head of the relevant agency, upon the request of the Mayor/Do Governor; |
| 3. | From among the heads of the trade centers, branches, and offices of the Korea Trade-Investment Promotion Agency, persons designated by the head of the Investment Support Center at the request of the Mayor/Do Governor; |
| 4. | Persons commissioned by the Mayor/Do Governor from among persons with extensive experience in and knowledge of the field of foreign investment. |
| (3) | In designating or commissioning members of the Council as prescribed in paragraph (2), members who can participate in all the meetings of the Council and members who, according to the decision of the Chairperson of the Council, can participate in those meetings only at which matters relevant to the members concerned are discussed may be divided in the process of the designation or commission. <Amended on Jan. 5, 2021> |
| (4) | The resolution of a meeting of the Council shall require the presence of a majority of members who can participate in such meeting pursuant to paragraph (3) and the consent of a majority of members present. |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for the operation of the Council shall be determined by the Mayor/ Do Governor subject to resolution by the Council. |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 24 (Handling of Civil Petitions by Foreign Investors) |
| (1) | The scope of civil petitions to be handled directly, and the handling period, as prescribed in Article 17 (2) and (5) of the Act, shall be as specified in attached Table 3. <Amended on Jul. 30, 2009> |
| (2) | The handling period for civil petitions to be handled in bulk and civil petitions to be individually handled as prescribed in Article 17 (5) of the Act shall be as follows: <Amended on Jul. 30, 2009> |
| 1. | For civil petitions to be handled in bulk: the period specified in attached Table 4: Provided, That where civil petitions concerning permission, etc. on the right column of attached Table 1 of the Act are individually received, the handling period under the relevant statutes and regulations; |
| 2. | For the civil petitions to be handled individually: the handling period under the relevant statutes and regulations. |
| (3) | Where the head of a civil affairs administrative agency, having received civil petitions to be handled in bulk, has requested consultation with the head of a relevant agency in accordance with Article 17 (4) of the Act, the head of the relevant agency shall submit his or her opinions to the head of the civil affairs administrative agency by the day preceding the date on which such handling period as specified in attached Table 4 expires (where the handling period as specified in attached Table 4 exceeds seven days, by two days before the last day of the handling period). <Amended on Jul. 30, 2009> |
| (4) | The record date for calculating the handling period under paragraphs (1) and (2) shall be the day of the receipt of the civil petition concerned by the head of the civil affairs administrative agency or the dispatched officer concerned. <Amended on Jul. 30, 2009> |
| (5) | "Permission, etc. as prescribed by Presidential Decree" in subparagraph 13 of attached Table 2 of the Act means such business matters of civil petitions as specified in attached Table 5. <Amended on Jul. 30, 2009> |
| (6) | Where the head of a civil affairs administrative agency or a dispatched officer makes notification of his or her refusal to grant permission in accordance with the latter part of Article 17 (5) of the Act, he or she shall specify the reasons and the legal basis for the refusal. <Amended on Jul. 30, 2009> |
| (7) | "Period prescribed by Presidential Decree" in the former part of Article 17 (7) of the Act means three days. <Amended on Jul. 30, 2009> |
| (8) | Where the head of a civil affairs administrative agency grants permission with conditions attached in accordance with Article 17 (10) of the Act, he or she shall attach a condition that insufficient points be supplemented by the time as prescribed by one of the following subparagraphs: <Amended on Jul. 30, 2009> |
| 1. | For permission, etc. prescribed in subparagraph 1 or 2 of attached Table 1 of the Act: the time of the application for construction permission (where construction permission is considered to have been granted, the time of the report on the commencement of construction); |
| 2. | For permission, etc. prescribed in subparagraph 3 of attached Table 1 of the Act: the time of the report on the commencement of construction; |
| 3. | For permission, etc. prescribed in subparagraph 4 of attached Table 1 of the Act: the time of the report on the commencement of operations; |
| 4. | For permission, etc. prescribed in subparagraph 5 of attached Table 1 of the Act: the time of the registration into the building ledger. |
| (9) | Where the person who receives permission, etc. with conditions attached in accordance with Article 17 (10) of the Act files an application for permission, etc. under any of subparagraphs of paragraph (8), he or she shall submit to the head of the civil affairs administrative agency a written confirmation that he or she has fully implemented the aforementioned conditions. <Amended on Jul. 30, 2009> |
| (10) | Deleted. <Jan. 13, 2004> |
| (11) | Where a reasonable and objective ground is deemed to exist for not being able to properly handle civil petitions within the handling period prescribed in paragraph (1) or (2), the head of a civil affairs administrative agency may extend the handling period only once. In such cases, the head of the civil affairs administrative agency concerned shall determine an additional period to be extended by estimating the necessary time for the proper handling, and notify the applicant for the permission, etc. concerned (where the application for permission has been filed vicariously by the Investment Support Center, the head of the Investment Support Center) of the extended handling period and the reasons for the extension of the handling period, and where the head of the Investment Support Center has received the notification, he or she shall, without delay, notify the original applicant for the permission, etc. concerned of the details of said notification. <Amended on Jul. 30, 2009> |
| (12) | Where supplement or correction is deemed to be necessary with respect to the contents of the application for the handling of civil petitions to be handled in bulk, civil petitions to be individually handled, or civil petitions to be directly handled as prescribed in Article 17 of the Act, the head of a civil affairs administrative agency or a dispatched officer may determine the period for the supplementation or correction and request the person concerned to supplement or correct them within such period. In such cases, the period consumed for such supplementation or correction shall not be included in the handling period as prescribed in paragraphs (1) and (2). <Amended on Jul. 30, 2009> |
| (13) | Except as provided in the Act or this Decree, the handling of civil petitions which are concerned with foreign investment shall be governed by the Civil Petitions Treatment Act. <Amended on Jul. 30, 2009; Jun. 22, 2021> |
CHAPTER IV FOREIGN INVESTMENT ZONES
| Article 25 (Designation of Foreign Investment Zones) |
| (1) | "Foreign investment meeting the standards prescribed by Presidential Decree" in Article 18 (1) 2 of the Act means any of the following foreign investments. In such cases, an amount of money equivalent to the holding ratio calculated by the methods provided for in Article 116-2 (11) and (12) of the Enforcement Decree of the Act on Restriction on Special Cases concerning Taxation shall be disregarded for the purpose of computing the amount of foreign investment in cases of a foreign corporation, the stocks or equity shares of which, are directly or indirectly owned by a national of the Republic of Korea (excluding persons falling under Article 3) or a Korean corporation: <Amended on Sep. 9, 2009; Dec. 14, 2009; Mar. 23, 2013; Jun. 11, 2013; Oct. 15, 2014; Jul. 28, 2016; Mar. 29, 2017; Jul. 28, 2020; Aug. 5, 2020; Jan. 5, 2021; Jun. 22, 2021> |
| 1. | Where the amount of foreign investment is at least 30 million U.S. dollars and new factory facilities are established to engage in any of the following businesses: |
| (a) | Manufacturing business; |
| (c) | Computer programming business, system integration and management business in the knowledge service industry, and data processing business, hosting (referring to services such as lease and operation of servers), and related service-providing business in the information service industry under the Korean Standard Industrial Classification; |
| 2. | Where the amount of foreign investment is at least 20 million U.S. dollars and new facilities are established engage in any of the following businesses: |
| (b) | Any of the following tourist businesses: |
| (c) | Deleted; <Jul. 28, 2016> |
| (e) | Deleted; <Jun. 22, 2021> |
| 3. | Where the amount of foreign investment is at least 10 million U.S. dollars and new facilities are established to engage in any of the following businesses: |
| 4. | Where the amount of foreign investment is at least 20 million U.S. dollars and a facility that meets each of the following is established or added, among research and development facilities that meets the criteria and procedure requirements prescribed by Ordinance of the Ministry of Trade, Industry and Energy in terms of the amount of facility investment, personnel in exclusive charge of research, etc.: |
| (b) | Deleted; <Jul. 28, 2016> |
| (c) | The number of regular workers dedicated to research with at least a master's degree related to the business and at least three years’ research career shall be at least 10 persons. |
| (2) | "Areas prescribed by Presidential Decree ... such as special research and development zones under subparagraph 1 of Article 2 of the Special Act on Promotion of Special Research and Development Zones" in Article 18 (1) 3 of the Act means any of the following areas: <Newly Inserted on Oct. 5, 2010; Jul. 26, 2012; Oct. 29, 2019; Jun. 22, 2021> |
| 4. | A high-tech medical complex defined under subparagraph 1 of Article 2 of the Special Act on the Promotion of High-Tech Medical Complexes. |
| (3) | "Service business ... prescribed by Presidential Decree" in the former part of Article 18 (1) 4 of the Act means the following service businesses: <Newly Inserted on Oct. 5, 2010; Jun. 11, 2013; Jul. 28, 2016; Jul. 18, 2023> |
| 1. | Finance and insurance business under the Korea Standard Industrial Classification; |
| 1-2. | Company headquarters under the Korean Standard Industrial Classification (limited to cases where the headquarters functions as a local headquarters under Article 20-2 (5) 1); |
| 3. | Deleted; <Jun. 22, 2021> |
| (4) | "Percentage prescribed by Presidential Decree" in the latter part of Article 18 (1) 4 of the Act means 50/100. <Amended on Oct. 5, 2010> |
| (5) | "Standards prescribed by Presidential Decree" in Article 18 (2) of the Act means all of the following matters: <Amended on Oct. 5, 2010; Nov. 16, 2011; Dec. 30, 2015; Jul. 28, 2016> |
| 1. | The total amount of money invested by two or more foreign investors shall be no less than the amount of foreign investment prescribed for each type of business in the subparagraphs of paragraph (1) (in the case of subparagraph 4, it means a facility; hereinafter the same shall apply); |
| 2. | The category of business or business being engaged in shall correspond to the category of business or business referred to in any subparagraph of paragraph (1); |
| 3. | The facilities referred to in the subparagraphs of paragraph (1) shall be placed adjacent to each another. |
| (6) | "Matters prescribed by Presidential Decree" in Article 18 (3) 6 of the Act means matters classified below: <Newly Inserted on Oct. 5, 2010; Mar. 23, 2013> |
| (a) | The implementer and the managing institution of the development project; |
| (b) | A land utilization plan and a plan for major infrastructure; |
| (c) | Other matters determined by the Foreign Investment Committee based on the characteristics of each region; |
| 2. | The following matters when designating any area referred to in Article 18 (1) 2 of the Act as a foreign investment zone: Provided, That the matters referred to in items (f) through (i) may be omitted when designating the whole or any part of a national industrial complex, general industrial complex, or urban high-tech industrial complex, the development of which has already been completed, as a foreign investment zone: |
| (a) | Details of investment, scale of employment, and details of business of foreign-invested companies to take occupancy in the foreign investment zone; |
| (b) | Viability of foreign investment to be induced; |
| (d) | Plans for supporting major facilities in the foreign investment zone; |
| (e) | Managing institution; |
| (f) | The implementer of the development project; |
| (g) | A land utilization plan and a plan for major infrastructure; |
| (h) | Specified details of land, buildings, other articles or, if any, rights to be expropriated or used; |
| (i) | Deleted; <Jul. 28, 2016> |
| (j) | Other matters prescribed by the Foreign Investment Committee; |
| (a) | Matters provided for in subparagraph 2 (c) through (h); |
| (b) | Measures to stabilize real estate prices in the foreign investment zone and adjacent areas; |
| (d) | Other matters prescribed by the Foreign Investment Committee. |
| (7) | When formulating a development plan pursuant to the latter part of Article 18 (1) of the Act, the development plan and a designation plan referred to in Article 18 (3) of the Act (hereinafter referred to as "designation plan") shall be also formulated, by including the matters referred to in the subparagraphs of Article 18 (3) of the Act and the items of paragraph (6) 2 of this Decree into such development plan. <Newly Inserted on Oct. 5, 2010> |
| (8) | A Mayor/Do Governor who intends to formulate a designation plan shall hear opinions from the head of the relevant Si/Gun/Gu, residents, and relevant experts. <Amended on Oct. 5, 2010> |
| (9) | The Foreign Investment Committee shall deliberate on whether to designate the relevant area as a foreign investment zone, comprehensively considering effects on the national economy, such as the feasibility of the foreign investment to be induced, balanced regional development, efficient utilization of the national territory, and employment growth based on the relevant designation plan. |
| (10) | Where the designation is deemed unnecessary after deliberation under paragraph (9), a Mayor/Do Governor shall not designate the relevant area as a foreign investment zone. <Amended on Oct. 5, 2010> |
| (11) | A foreign-invested company shall satisfy the standards referred to in paragraphs (1) and (5) according to the relevant designation plan within five years from the date of public notice under Article 18 (4) of the Act. <Amended on Oct. 5, 2010> |
| (12) | "Matters prescribed by Presidential Decree" in Article 18 (4) 5 of the Act means all of the following matters: <Amended on Oct. 5, 2010> |
| 1. | Objectives for which a foreign investment zone is designated; |
| 2. | Period for development of a foreign investment zone; |
| 3. | Qualifications for enterprises to take occupancy and categories of business to be attracted (limited to where the area referred to in Article 18 (1) 1 of the Act has been designated as a foreign investment zone); |
| 4. | Methods for perusing relevant drawings and documents (limited to where the area referred to in Article 18 (1) 1 of the Act has been designated as a foreign investment zone). |
| (13) | "Minor alterations prescribed by Presidential Decree" in the proviso of Article 18 (5) of the Act means any of the following alterations: <Amended on Oct. 5, 2010; Jun. 11, 2013; Aug. 5, 2020> |
| 1. | An alteration to the area of a foreign investment zone (limited to an alteration by up to 30/100); |
| 2. | An increase, or a decrease by up to 30/100, in the amount of foreign investment (limited to where the requirements for designation of foreign investment zones set out in Article 18 (1) of the Act are met even after such increase or decrease); |
| 3. | An alteration to the scale of employment by the relevant foreign-invested company; |
| 4. | An alteration to the main categories of business to be attracted (limited to where the area referred to in Article 18 (1) 1 of the Act has been designated as a foreign investment zone); |
| 5. | An alteration to the details of business of the relevant foreign-invested company (limited where the area referred to in Article 18 (1) 2 of the Act has been designated as a foreign investment zone); |
| 6. | Other matters determined by the Foreign Investment Committee. |
| (14) | A Mayor/Do Governor shall seek prior consultation with the Minister of Trade, Industry and Energy on an alteration referred to in any subparagraph of Article 13. <Amended on Oct. 5, 2010; Mar. 23, 2013> |
| (15) | Except as provided in paragraphs (1) through (14), matters necessary for the designation and development of foreign investment zones shall be determined by the Foreign Investment Committee. <Amended on Oct. 5, 2010> |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 26 (Cancellation of Designation of Foreign Investment Zones) |
| (1) | Where a foreign-invested company taking occupancy in an area referred to in Article 18 (1) 2 of the Act, designated as a foreign investment zone, or an area referred to in Article 18 (1) 3 or 4 fails to meet the standards for designation provided for in Article 25, the competent Mayor/Do Governor shall take the following measures pursuant to Article 18-2 of the Act: <Amended on Oct. 5, 2010; Mar. 23, 2013; Jul. 28, 2016> |
An order requiring that the relevant foreign-invested company meet such standards within a specified period not exceeding six months (hereinafter referred to as "implementation period"). In such cases, such implementation period may be extended only on one occasion by up to the period originally specified where it is deemed that there is any unavoidable cause;
The relevant foreign-invested company shall meet such standards within a specified period not exceeding six months, after consulting with the Minister of Trade, Industry and Energy. In such cases, the competent Mayor/Do Governor may extend such implementation period only on one occasion by up to the period originally specified, after consulting with the Minister of Trade, Industry and Energy where there is any unavoidable circumstance.
| (2) | Where a foreign-invested company or a foreign investment zone still fails to meet the standards for designation within the implementation period specified under the subparagraphs of paragraph (1), the competent Mayor/Do Governor shall request the Foreign Investment Committee to deliberate on the cancellation of designation within 30 days. <Amended on Oct. 5, 2010; Jul. 28, 2016> |
| (3) | Except as provided in paragraphs (1) and (2), matters necessary for cancellation of designation of foreign investment zones shall be determined by the Foreign Investment Committee. |
[This Article Wholly Amended on Jul. 30, 2009]
[Moved from Article 26-2; previous Article 26 moved to Article 26-2 <Aug. 5, 2020>]
| Article 26-2 (Management of Foreign Investment Zones) |
| (1) | The agency in charge of the management of foreign investment zones (hereafter referred to as the "management agency" in this Article) pursuant to Article 18-3 (1) of the Act shall manage the foreign investment zones in accordance with the designation plan. <Amended on Oct. 5, 2010; Aug. 5, 2020> |
| (2) | The management agency, which manages foreign investment zones in accordance with paragraph (1), shall preferentially take into account the convenience of foreign investors or foreign-invested companies and shall endeavor to render support for securing various infrastructure needed for supporting the business of the foreign-invested companies in the zones, such as financial institutions, information and communications facilities, and logistics facilities, as well as support for securing medical facilities, educational facilities, and housing. |
| (3) | Any person who intends to run a business in a foreign investment zone shall enter into an occupancy agreement (hereafter referred to as "occupancy agreement" in this Article) with the management agency: Provided, That a person who has ownership or a right to use a site or a building in the relevant foreign investment zone need not enter into an occupancy agreement. <Newly Inserted on Aug. 5, 2020> |
| (5) | Where any person who has entered into an occupancy contract falls under any of the following subparagraphs, the management agency shall issue an order to rectify the relevant item within a specified period not exceeding six months, and if he or she fails to comply with such order within the relevant period, it may terminate the occupancy contract: Provided, That in cases of subparagraphs 3, 4 and 7, a contract for occupancy may be terminated immediately without a corrective order: <Newly Inserted on Aug. 5, 2020> |
| 1. | Where he or she fails to commence construction of such factory, etc. or to start business within a period prescribed by Ordinance of the Ministry of Trade, Industry and Energy without good cause after concluding an occupancy agreement; |
| 2. | Where he or she ceases to meet the requirements for occupancy; |
| 3. | Where he or she sells, leases, exchanges, or in any other way disposes of the leased site, building, or facility on his or her own discretion; |
| 5. | Where he or she suspends or closes his or her business continuously at least one year; |
| 6. | Where he or she fails to pay the rent for at least one year; |
| 7. | Where it is deemed impractical to achieve the purpose of the occupancy agreement due to violation of an Act or a material breach of the occupancy contract. |
| (6) | The management agency shall hold a hearing when it intends to terminate an occupancy agreement pursuant to paragraph (5). <Newly Inserted on Aug. 5, 2020> |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for providing cash grants and other matters shall be determined by the Minister of Trade, Industry and Energy following deliberation by the Foreign Investment Committee. <Amended on Aug. 5, 2020> |
[This Article Wholly Amended on Jul. 30, 2009]
[Moved from Article 26; previous Article 26-2 moved to Article 26 <Aug. 5, 2020>]
CHAPTER V FOLLOW-UP MANAGEMENT OF FOREIGN INVESTMENT
| Article 27 (Procedures for Registration of Foreign-Invested Companies) |
| (1) | A foreign investor or a foreign-invested company shall file for registration as a foreign-invested company with the Minister of Trade, Industry and Energy, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy, within 60 days from the occurrence of the relevant ground provided for in the subparagraphs of Article 21 (1) of the Act: Provided, That where a foreigner who contributes to a nonprofit corporation completes his or her contribution under Article 2 (1) 4 (c) of the Act, and the nonprofit corporation fails to meet any of the standards provided for in the subparagraphs of Article 2 (6), the foreigner shall file for registration within 30 days upon meeting such standards. <Amended on Mar. 23, 2013; Jun. 11, 2013; Jul. 28, 2016> |
| (2) | “When a foreign investor or foreign-invested company ... meets requirements prescribed by Presidential Decree, such as the investment amount” in Article 21 (2) of the Act means where both of the following are met: <Amended on Jul. 28, 2016> |
| 1. | The amount of investment referred to in the main clause of Article 2 (2) shall be at least 100 million won; |
| 2. | A foreigner shall own at least 10/100 of either the total number of voting stocks or the total equity investment as prescribed in Article 2 (2) 1. |
[This Article Wholly Amended on Jul. 30, 2009]
[Title Amended on Jul. 28, 2016]
| Article 28 (Cancellation of Registration of Foreign-Invested Companies) |
| (1) | Pursuant to Article 21 (4) of the Act, the Minister of Trade, Industry and Energy shall examine whether any of the grounds provided for in the subparagraphs of Article 21 (4) of the Act has arisen at least once a year. |
| (2) | In order to cancel registration under Article 21 (4) of the Act, the Minister of Trade, Industry and Energy shall notify the relevant foreign-invested company of such cancellation or make a public announcement thereof, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. |
| (3) | Upon canceling the registration of a foreign-invested company under Article 21 (4) of the Act, the Minister of Trade, Industry and Energy shall inform the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, and the head of the local government which has supported the foreign-invested company under Chapter III of the Act of the details of such cancellation. |
| (4) | "Cases meeting the criteria prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 21 (5) of the Act means any of the following cases: <Amended on Oct. 21, 2021> |
| 1. | In cases falling under Article 21 (5) 1 of the Act: When the foreign investment ratio is less than 10/100; |
| 2. | In cases falling under Article 21 (5) 2 of the Act: Any of the following cases: |
| (a) | Where a company, the foreign investment ratio in which is less than 50/100 and the largest stockholder of which is not a foreign investor (including specially related persons under Article 6 (1)), acquires the stocks, etc. of a domestic company; |
| (b) | Where a foreign-invested company (excluding an institutional private equity fund referred to in Article 9 (19) 1 of the Financial Investment Services and Capital Markets Act), which runs a financial business or insurance business and all or some of the business activities of which consists of acquisition of stocks, etc. of other companies pursuant to other statutes or regulations; |
| (c) | Where a foreign-invested company acquires no more than 10/100 of the total number of the stocks, etc. issued by, or the total equity investment of, a domestic company. |
[This Article Wholly Amended on Jul. 28, 2016]
| Article 29 Deleted. <Jul. 28, 2016> |
| Article 30 Deleted. <Jul. 28, 2016> |
| Article 31 Deleted. <Jul. 28, 2016> |
| Article 32 Deleted. <Jul. 28, 2016> |
| Article 33 Deleted. <May 24, 1999> |
CHAPTER VII SUPPLEMENTARY PROVISIONS
| Article 34 (Operation of Foreign Investment Committee) |
| (1) | Deleted. <May 24, 1999> |
| (2) | The Chairperson of the Foreign Investment Committee shall exercise general control over various business affairs of the Committee, represent the Committee, and call and preside over meetings of the Committee. Where the Chairperson is unable to perform his or her duties for any inevitable reason, a member of the Committee designated by the Chairperson shall perform such duties on behalf of the Chairperson. <Amended on Jul. 30, 2009; Jan. 5, 2021> |
| (3) | The president of the Korea Trade-Investment Promotion Agency, the foreign investment ombudsman, and the project managers may attend the meetings of the Committee and state their opinions. <Amended on Jul. 30, 2009> |
| (4) | Meetings of the Committee shall be held with the attendance of a majority of the members who are entitled to participate in said meetings, and resolutions shall be passed with the affirmative vote of a majority of those present. <Amended on Jul. 30, 2009> |
| (5) | The Committee may require relevant persons to state their opinions, if deemed necessary. <Amended on Jul. 30, 2009> |
| (6) | Where the Chairperson call a meeting of the Committee, he or she shall notify each member of the Committee of the date and time, place, and purpose of the meeting by no later than three days before the beginning of such meeting: Provided, That this shall not apply in an emergency. <Amended on Jul. 30, 2009> |
| (7) | A secretary shall be assigned to the Committee to handle its administrative affairs, and the secretary shall be appointed by the Minister of Trade, Industry and Energy from among public officials belonging to the Ministry of Trade, Industry and Energy. <Amended on Jul. 30, 2009; Mar. 23, 2013> |
| Article 35 (Establishment and Operation of Foreign Investment Working Committee) |
| (1) | Matters entrusted to a Foreign Investment Working Committee (hereinafter referred to as "Working Committee") by the Foreign Investment Committee pursuant to Article 27 (3) of the Act are as follows: <Amended on Oct. 5, 2010; Aug. 5, 2020> |
| 3. | Matters regarding the establishment and operation of the Investment Support Center under Article 21 (8); |
| 4. | Matters regarding the establishment and operation of the grievance committee under Article 21-4 (8); |
| 5. | Other matters deemed necessary following deliberation by the Committee. |
| (2) | The Minister for Trade shall be the Chairperson of the Working Committee, and the following persons shall be the members thereof: <Amended on Mar. 23, 2013; Jun. 11, 2013; Mar. 30, 2017> |
| 1. | A person designated, upon the request of the Minister of Trade, Industry and Energy, by a relevant Minister from among public officials in general service who are members of the Senior Executive Service in the Ministry of Trade, Industry and Energy or any other relevant Ministry; |
| 2. | A Vice-Mayor or Vice-Governor of a relevant City/Do (in the case of Seoul Special Metropolitan City, referring to a person designated by the Mayor, from among public officials of Grade I in the Metropolitan Government) and a person commissioned by the Chairperson from among those with abundant experience and knowledge in the field of foreign investment; |
| 3. | The head of the Investment Support Center and the foreign investment ombudsman. |
| (3) | A secretary shall be assigned to the Working Committee to handle its administrative affairs, and the secretary shall be appointed by the Minister of Trade, Industry and Energy from among the public officials belonging to the Ministry of Trade, Industry and Energy. <Amended on Mar. 23, 2013> |
| (4) | The Committee shall establish, under the jurisdiction of the Working Committee, a Foreign Investment Inducement Subcommittee with a member of the Working Committee belonging to the Ministry of Trade, Industry and Energy as its Chairperson, for the integration and management of foreign investment inducement, the encouragement and inspection of the settlement of civil petitions concerning foreign investment, and the review of the agenda of the Working Committee concerning foreign investment inducement activities. <Amended on Mar. 23, 2013> |
| (5) | Except as provided in this Decree, matters necessary for the operation of the Committee, the Working Committee, and the Subcommittee shall be determined by the Chairperson of the Committee following a resolution by the Committee. |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 36 (Reporting on Data on Current Status of Foreign Investment) |
| (1) | The Governor of the Bank of Korea shall integrate the current status of the outflow and inflow of foreign investment funds each month, and shall report it to the Minister of Trade, Industry and Energy by the tenth of the following month. <Amended on Mar. 23, 2013; Jul. 28, 2016> |
| (2) | The Minister of Trade, Industry and Energy shall compile data on the current status of foreign investment and foreign-invested companies on a regular basis and forward such data to agencies related to foreign investment inducement. <Amended on Mar. 23, 2013> |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 37 (Disposal of Capital Goods) |
| (1) | Where the head of any customs office intends to sell capital goods pursuant to Article 28 (7) of the Act, he or she shall submit a list of the capital goods for sale to the Minister of Trade, Industry and Energy via the Commissioner of the Korea Customs Service. <Amended on Mar. 23, 2013; Jul. 28, 2016> |
| (2) | The Minister of Trade, Industry and Energy may request the head of the relevant customs office to postpone the sale of capital goods under paragraph (1) after consulting with the head of the relevant agency. In such cases, a request to the head of a customs office shall be made within 20 days of receipt of a list of the capital goods to be sold. <Amended on Mar. 23, 2013> |
| (3) | Where no request for postponement is made within the period prescribed in the latter part of paragraph (2), the head of the relevant customs office shall sell the relevant capital goods and report thereon to the Minister of Trade, Industry and Energy. <Amended on Mar. 23, 2013> |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 38 (Examination and Confirmation of Introduced Capital Goods) |
| (1) | "Capital goods which meet the criteria prescribed by Presidential Decree, such as capital goods introduced into Korea under this Act which are subject to tax reductions or exemption" in Article 29 (1) of the Act means any of the following: <Amended on Mar. 23, 2013; Jul. 18, 2023> |
| 2. | Capital goods introduced into the Republic of Korea by a foreign investor as an object of investment (including contributions; hereafter in this Article the same shall apply); |
| 3. | Capital goods introduced into the Republic of Korea by a foreign-invested company using a means of international payment with investment made by a foreign investor or a means of domestic payment obtained from the exchange of the means of international payment, among the goods designated and publicly notified by the Minister of Trade, Industry and Energy pursuant to Article 11 (1) of the Foreign Trade Act. |
| (2) | Any person who intends to introduce into the Republic of Korea capital goods prescribed in the subparagraphs of paragraph (1) and goods, other than the capital goods introduced for the foreign investment as defined in Article 2 (1) 4 (c) and (d) of the Act (referred to as "capital goods, etc." hereafter in this paragraph), shall prepare a written specification of the goods, etc. to be introduced, which states their quantities, standard sizes, prices and manufacturers, and apply for the examination and confirmation thereof to the competent Minister before their import declarations are accepted under Article 241 (1) of the Customs Act. <Amended on Oct. 15, 2014; Aug. 5, 2020> |
| (3) | Notwithstanding paragraph (2), if either of the following events occurs, a person may apply for the examination and confirmation of a written specification of capital goods, etc. within the time frame classified below: <Newly Inserted on Oct. 15, 2014> |
| 2. | Where the capital goods, etc. are not shipped out from the bonded area: Within 15 days from the acceptance of the relevant import declarations. |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 39 (Confirmation of Completion of Investment in Kind) |
| (1) | Where the Commissioner of the Korea Customs Service has confirmed the completion of the investment in kind in accordance with Article 30 (3) of the Act, he or she shall, without delay, notify the Governor of the Bank of Korea. |
[This Article Wholly Amended on Jul. 30, 2009]
| Article 39-2 (Prior Deliberation on Second-Tier Company’s Holding Stocks of Joint Stock Corporation) |
The requirements subject to prior deliberation by the Fair Trade Commission under the latter part of Article 30 (7) of the Act shall be as follows: <Amended on Dec. 28, 2021; Jul. 18, 2023> | 3. | The business that a joint stock corporation under Article 30 (6) of the Act intends to carry out shall have any kind of business relevance described below with the business of a second-tier company that has control over its business contents: |
| (a) | The business shall be of making or selling products or services with products or services of the second-tier company as its major production elements; |
| (b) | The business shall be of providing raw materials, services, or other production elements required by the second-tier company; |
| (c) | The business shall be of conducting research and development concerning raw materials or services produced by the second-tier company; |
| (d) | The business shall be of making or selling products or services identical, or sharing most of the production technology, with the products or services produced by the second-tier company; |
| (e) | The business shall otherwise have close relevance with the business contents of the second-tier company; |
| 4. | The business that a joint stock corporation under Article 30 (6) of the Act intends to carry out shall have more relevance with the business of a second-tier company than with the business of a subsidiary (referring to a subsidiary defined in subparagraph 8 of Article 2 of the Monopoly Regulation and Fair Trade Act) of a general holding company, so that the second-tier company is qualified to become a stakeholder in the joint stock corporation; |
[This Article Newly Inserted on Feb. 27, 2014]
| Article 39-3 (Re-Examination of Regulation) |
| (1) | The Minister of Trade, Industry and Energy shall examine the feasibility of the requirements subject to prior deliberation specified in Article 39-2 every three years, beginning on January 1, 2014 (meaning until the date before January 1 of every third year) and shall take measures, such as making improvements. |
| (2) | The Minister of Trade, Industry and Energy shall examine the appropriateness of the following matters every two years counting from each base date specified in the following (referring to the period that ends on the day before the base date of every second year) and shall take necessary measures, such as making improvements: <Amended on Aug. 5, 2020> |
| 1. | Deleted; <Jul. 28, 2016> |
| 2. | Scope of the service businesses that can be designated as a foreign investment zone under Article 25 (3): January 1, 2015; |
| 3. | Standards and procedures for cancellation of designation of foreign investment zones under Article 26: January 1, 2015; |
| 4. | Deleted; <Jul. 28, 2016> |
| 5. | Deleted; <Jul. 28, 2016> |
| 6. | Deleted; <Jul. 28, 2016> |
| 7. | Deleted; <Jul. 28, 2016> |
| 8. | Deleted. <Jul. 28, 2016> |
| (3) | Deleted. <Mar. 3, 2020> |
[This Article Wholly Amended on Dec. 9, 2014]
| Article 40 (Delegation or Entrustment of Authority) |
| (1) | Pursuant to Article 31 of the Act, the Minister of Trade, Industry and Energy shall delegate or entrust his or her authority as classified below: <Amended on Mar. 23, 2013; Jul. 28, 2016> |
| 1. | Deleted; <Jul. 28, 2016> |
| 4. | Authority prescribed in Article 28 of the Act, other than those prescribed in subparagraphs 2 and 3 above, concerning the investigations into the status of implementing the terms of permission for, or details of reports by foreigners, foreign investors, and foreign-invested companies, and corrective orders therefor shall be delegated or entrusted to the competent Minister, the Commissioner of the National Tax Service, or the Commissioner of the Korea Customs Service according to their jurisdictions. |
| (2) | Pursuant to Article 31 of the Act, the Minister of Trade, Industry and Energy shall entrust his or her authority over the following affairs to the president of the Korea Trade-Investment Promotion Agency (including the heads of the trade-centers, branches, and offices designated by the president of the Korea Trade-Investment Promotion Agency; hereinafter the same shall apply) and the head of a foreign exchange bank (including the heads of such branches of the foreign exchange bank as designated by the head of the foreign exchange bank; hereinafter the same shall apply): <Amended on Mar. 23, 2013; Jul. 28, 2016> |
| 1. | Receipt of reports on, and modifications to, foreign investment and the issuance of certificates of completion of reports under Article 5 of the Act; |
| 5. | Notification or public announcement of cancellation of registration under Article 28 (2) and (3) to foreign-invested companies and the Commissioner of the National Tax Service. |
| (3) | The competent Minister shall entrust business matters concerning the examination and confirmation under Article 38 (2) to the head of a foreign exchange bank and the president of the Korea Trade-Investment Promotion Agency. |
| (5) | People who have been delegated or entrusted under paragraphs (1) and (2) shall notify, or report on, the results of performing such delegated or entrusted affairs to the Minister of Trade, Industry and Energy; persons who have been entrusted under paragraph (3) to the competent Minister; and persons who have been entrusted under paragraph (4) to the competent Mayor/Do Governor. <Amended on Mar. 23, 2013> |
| (6) | The Minister of Trade, Industry and Energy may determine details necessary for performing affairs delegated or entrusted under paragraphs (1) through (3). <Amended on Mar. 23, 2013> |
[This Article Wholly Amended on Jul. 30, 2009]
CHAPTER VIII ADMINISTRATIVE FINES
| Article 41 (Criteria for Imposition of Administrative Fines) |
Standards for imposition of administrative fines under Article 37 of the Act shall be as specified in attached Table 6. [This Article Wholly Amended on Jul. 30, 2009]
ADDENDA <Presidential Decree No. 15931, Nov. 14, 1998>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 17, 1998.
Article 2 (Repeal of Other Statutes and Regulations)
The Enforcement Decree of the Foreign Investment and Foreign Capital Inducement Act is hereby repealed.
Article 3 (Applicability to Designation of Foreign Investment Zones)
| (1) | The provisions of Article 25 (1) 1 (d) and 2 shall apply to foreign investments reported on or after the date this Decree enters into force. |
| (2) | The application of the provisions of Article 25 (1) 2 shall be limited to foreign investments which will have been reported by December 31, 2003, and in which the payment of the objects of the investments will have completed by December 31, 2005. |
Article 4 (Transitional Measures concerning Public Announcement of Provisions concerning Restrictions on Foreign Investment)
Notwithstanding the provisions of Article 5 (2), the head of a relevant administrative agency shall make a public announcement to the Minister of Finance and Economy of the contents of the provisions restricting foreign investment within one month after this Decree enters into force, and the Minister of Finance and Economy shall integrate the notified details and issue public notice of the consolidated contents thereof within two months after this Decree enters into force.
Article 5 (Relationship to Other Statutes and Regulations)
Where other statutes and regulations contain, at the time this Decree enters into force, a citation of such provisions as relate to foreign investment among the previous Enforcement Decree of the Foreign Investment and Foreign Capital Inducement Act and the previous Enforcement Decree of the Foreign Capital Inducement Act, and where there are provisions corresponding to those cited in this Decree, those statutes and regulations shall be regarded as having cited the corresponding provisions of this Decree.
ADDENDA <Presidential Decree No. 16330, May 24, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 16583, Oct. 27, 1999>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16720, Feb. 23, 2000>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Applicability for Designation of Foreign Investment Zone) The amendments to Article 25 (1) 2 shall apply to foreign investments with respect to which the designation plan is submitted in accordance with Article 25 (2) on or after the date this Decree enters into force. |
ADDENDUM <Presidential Decree No. 17135, Feb. 24, 2001>
This Decree shall enter into force on the date of its promulgation: Provided, That the amendments to the proviso of Article 2 (2) shall enter into force three months after the date of its promulgation.
ADDENDA <Presidential Decree No. 17137, Feb. 24, 2001>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 17474, Dec. 31, 2001>
| (1) | (Enforcement Date) This Decree shall enter into force on January 1, 2002. |
| (2) | (Applicable Cases for Rental Fee of State or Public Property) The amendments to Article 19 (3) shall apply to foreign investments reported on or after the date this Decree enters into force. |
| (3) | (Applicable Cases for Requirements for Designation of Foreign Investment Zone) The amendments to Article 25 (1) 1 through 3 shall apply to foreign investments reported on or after the date this Decree enters into force. |
ADDENDA <Presidential Decree No. 17686, Jul. 27, 2002>
| (1) | (Enforcement Date) This Decree shall enter into force on July 27, 2002. |
ADDENDA <Presidential Decree No. 17851, Dec. 30, 2002>
| (1) | (Enforcement Date) This Decree shall enter into force on January 1, 2003. |
| (2) | (Applicability to Designation of Foreign Investment Zones) The amended provisions of Article 25 (1) 1 (a) and 4 shall begin to apply to the foreign investment reported on and after the date when this Decree enters into force. |
ADDENDA <Presidential Decree No. 18039, Jun. 30, 2003>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2003.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 18222, Jan. 13, 2004>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 25 (1) 3 (b) shall enter into force on February 1, 2004. |
| (2) | (Applicability of Reduction of or Exemption from Rents for Foreign-Invested Companies) The amended provisions of Article 19 (4) 2 shall begin to apply to the first application for reduction of or exemption from the rent first filed after this Decree enters into force. |
| (3) | (Applicability of Foreign Investment Zone) The amended provisions of Article 25 shall begin to apply to a report first made on foreign investment after this Decree enters into force. |
ADDENDA <Presidential Decree No. 18343, Mar. 29, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2004.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 18662, Dec. 31, 2004>
This Decree shall enter into force on January 1, 2005.
ADDENDA <Presidential Decree No. 18736, Mar. 8, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 19321, Feb. 8, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 19639, Aug. 4, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 5, 2006.
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 19826, Jan. 5, 2007>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20257, Sep. 10, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20258, Sep. 10, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20289, Sep. 27, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 28, 2007.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20290, Sep. 27, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 28, 2007.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 20331, Oct. 23, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 28, 2007. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 20344, Oct. 26, 2007>
This Decree shall enter into force on October 28, 2007.
ADDENDA <Presidential Decree No. 20516, Dec. 31, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2008.
Articles 2 through 7 Omitted.
ADDENDUM <Presidential Decree No. 20646, Feb. 22, 2008>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 5 shall enter into force three month after the date of its promulgation.
ADDENDA <Presidential Decree No. 20678, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 21098, Oct. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21181, Dec. 24, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2009.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21182, Dec. 24, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21214, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21515, May 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21590, Jun. 30, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2009. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 21641, Jul. 27, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 31, 2009. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 21657, Jul. 30, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 31, 2009.
Article 2 (Applicability)
The amended provisions of Article 29 (2) 2 (b) shall begin to apply to the acquisition of stocks, etc. of other companies by a private equity fund first made after this Decree enters into force.
Article 3 Omitted.
ADDENDA <Presidential Decree No. 21719, Sep. 9, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 10, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21882, Dec. 14, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 21918, Dec. 30, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2010. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22073, Mar. 9, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 10, 2010. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22224, Jun. 28, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22426, Oct. 5, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 6, 2010.
Article 2 (Transitional Measures for Foreign Investment Amount)
Notwithstanding the amended provisions of Article 2 (2) concerning foreign investment amount, the previous provisions shall apply to foreign investment reported as at the time this Decree enters into force.
Article 3 (Applicability to Capitalization of Earned Surplus Reserve)
The amended provisions of Article 2 (3) shall begin to apply to reporting first made on foreign investment after this Act enters into force.
ADDENDA <Presidential Decree No. 22815, Apr. 1, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2011.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 23297, Nov. 16, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23993, Jul. 26, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 27, 2012.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 24442, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 24502, Apr. 22, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 24, 2013.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24585, Jun. 11, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 19, 21-3 (5) through (7), 21-4 (2), 35 (2) 2, and attached Table 6 shall enter into force on June 12, 2013.
Article 2 (Applicability to Notification of Handling Results)
The amended provisions of Article 21-3 (5) shall begin to apply to a recommendation to take corrective measures from the foreign investment ombusman on or after the date this Decree enters into force.
Article 3 (Applicability to Designation of Foreign Investment Zones)
The amended provisions of Article 25 (1) shall begin to apply to an application for designation of a foreign investment zone filed on or after the date this Decree enters into force.
ADDENDA <Presidential Decree No. 24638, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2013.
Articles 2 through 17 Omitted.
ADDENDUM <Presidential Decree No. 25221, Feb. 27, 2014>
This Decree shall enter into force on March 11, 2014.
ADDENDA <Presidential Decree No. 25249, Mar. 11, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 25476, Jul. 16, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on Jul. 31, 2014.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25655, Oct. 15, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 48 of attached Table 5 (limited to the matters relating to the licensing of operating research reactors, etc.) shall enter into force on November 22, 2014.
Article 2 (Applicability to Rates of Reduction or Exemption of Rents)
The amended provisions of Article 19 (6) 1 (d) and (7) 1 shall apply with regard to the conclusion of a lease contract or renewal contract made after this Decree enters into force.
Article 3 (Applicability to Exemption from Duty to Report in Case of Disposal of Capital Goods Subject to Tax Reduction or Exemption)
| (1) | The amended provisions of Article 29 (1) 1 and 2 shall also apply where a person has obtained the approval or confirmation of the head of the relevant customs office under Article 108 (4) or 109 (1) of the Customs Act before this Decree enters into force. |
| (2) | The amended provisions of Article 38 (3) 1 shall apply where a person receives a notice of payment under Article 39 (3) of the Customs Act on or after the date this Decree enters into force. |
| (3) | The amended provisions of Article 38 (3) 2 shall apply where import declarations have been accepted under Article 241 (1) of the Customs Act before this Decree enters into force. |
Article 4 (Transitional Measures for Cash Grants for Local Headquarters)
Notwithstanding the amended provisions of Article 20-2 (4) 1, the former provisions shall apply with regard to the local headquarters to which cash grants have been awarded under former Article 20-2 (4) 1 as at the time this Decree enters into force.
Article 5 (Transitional Measures for Designation of Foreign Investment Zone of Research Facilities)
Notwithstanding the amended provisions of Article 25 (1) 4, the former provisions shall apply with regard to the research facilities designated as a foreign investment zone under former Article 25 (1) 4 as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on Jan. 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 26205, Apr. 20, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on Apr. 29, 2015.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 26600, Oct. 23, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on Oct. 25, 2015. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDUM <Presidential Decree No. 26803, Dec. 30, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 27406, Jul. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Reduction of, or Exemption from, Rents for Public Property)
The amended Article 19 (11) shall apply, beginning with a lease contract concluded or renewed after this Decree enters into force.
Article 3 (Transitional Measures concerning Definitions of Foreign Investment)
Any foreign investment reported or permitted under the former provisions before this Decree enters into force shall be deemed a foreign investment that complies with the amended Article 2 (2) 2, (6), and (7).
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 27793, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 20, 2017.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27972, Mar. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2017.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 28212, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 29172, Sep. 18, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 21, 2018.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 30170, Oct. 29, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on Nov. 1, 2019.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 30509, Mar. 3, 2020>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 30586, Mar. 31, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2020. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 30876, Jul. 28, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 30, 2020.
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 30918, Aug. 5, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 5, 2010.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 31576, Mar. 30, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2021. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 31741, Jun. 8, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 9, 2021.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 31811, Jun. 22, 2021>
This Decree shall enter into force on June 23, 2016.
ADDENDA <Presidential Decree No. 32091, Oct. 21, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 21, 2021.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 32274, Dec. 28, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 30, 2021.
Articles 2 through 14 Omitted.
ADDENDA <Presidential Decree No. 32733, Jun. 28, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 29, 2022.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 33621, Jul. 7, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 10, 2023.
Articles 2 through 14 Omitted.
ADDENDA <Presidential Decree No. 33635, Jul. 18, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Businesses Eligible for Reduction of, or Exemption from, Rent for State Property)
Notwithstanding the amended provisions of Article 19 (6) 1 (b), the previous provisions shall apply to the reduction of or exemption from a rent for State property for the business for which a decision of tax reduction or exemption has been made before this Decree enters into force.