| Article 2 (Definitions of Foreign Investment) |
| (1) | "International economic cooperative organization prescribed by Presidential Decree" in Article 2 (1) 1 of the Foreign Investment Promotion Act (hereinafter referred to as the "Act") means: |
| 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: |
| 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 the same 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> |
| (4) | "Company that has a capital investment relationship prescribed by Presidential Decree" in Article 2 (1) 4 (b) (ii) of the Act means: <Amended on Oct. 5, 2010> |
| 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> |
| 1. | A foreigners' school established under Article 60-2 of the Elementary and Secondary Education Act; |
| 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; |
| 3. | A pharmacy defined under subparagraph 3 of Article 2 of the Pharmaceutical Affairs Act; |
| 4. | Detached housing and multi-family housing referred to in subparagraphs 1 and 2 of attached Table 1 of the Enforcement Decree of the Building 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. |
| (10) | "Intellectual property rights prescribed by Presidential Decree" in Article 2 (1) 8 (d) of the Act means any rights used in the industrial activities among copyrights registered under the Copyright Act and the layout-design rights defined under subparagraph 5 of Article 2 of the Act on the Layout-Designs of Semiconductor Integrated Circuits. <Amended on Oct. 5, 2010; Aug. 5, 2020> |
| (11) | "Stocks prescribed by Presidential Decree" in Article 2 (1) 8 (g) of the Act means the following: <Amended on Oct. 5, 2010; Aug. 5, 2020> |
| 1. | Stocks of foreign corporations listed on foreign securities markets; |
| 2. | Stocks owned by foreigners under the Act or the Foreign Exchange Transactions Act. |
| (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> |