• go facebook
  • go twitter
  • go blog
  • go youtube
  • go linkedin
  • go rss
상단검색

Date   :

~

Sort   :

FAQ

  • Title
    Are there free Korean language programs for foreign residents in Korea?
  • Content
    Commissioned by the Ministry of Trade, Industry & Energy, Invest Korea has operated the Korean Language School (KLS) since September 2007 to support foreign investors staying in Korea to address language barriers, which has often been one of the biggest problems faced by foreigners living in Korea. 
     
    - Eligibility: A-1, D-4, D-8, E-3, F-2, F-3 visa holders
    - Venue: Invest Korea Plaza
    - Inquiries: 02)3460-7376
     
    <Other Free-Based Korean Language Courses>
    1. Offline only
    Seoul Global Center: http://global.seoul.go.kr
    2. Online/offline
    KOTRA Contact Korea: http://contactkorea.go.kr/en/index.do
    3. Online only
    KBS Let's Learn Korean: http://world.kbs.co.kr/learn_korean2
    Talk To Me in Korean: http://www.talktomeinkorean.com
     
     
    < Other Korean Language Courses (Charged) >
    1. Offline only
    Kyung Hee Univ. IIE: http://eng.iie.ac.kr
    Korean Language & Culture Center Korea University: http://klcc.korea.ac.kr
     
    Hansei Korean Language Institute: http://www.hskli.com/eng/
    Easy Korean Academy: http://www.edukorean.com/english/
     
    2.Online/offline 
    King Sejong Institute: http://www.sejonghakdang.org/
    Sogang Korean Program: http://korean.ac.kr/
    The Korean Language Institute : http://www.yskli.com/
  • Title
    What is object of investment that is recognized as foreign investment?
  • Content

    o "Object of investment" refers to the investment of foreign investor to acquire stocks under the Foreign Investment Promotion Act and that falls under any of the following: 

    - Foreign means of payment or means of domestic payment following the Foreign Exchange Transactions Act 

    - Capital goods

    - Damages occurred by acquiring stocks under the Foreign Investment Promotion Act 

    - Industrial property right, intellectual property right decided by a Presidential decree and other rights related to the usage of relevant technology. 

    - When a foreigner closes a branch office or an office in Korea and transfers it to a domestic corporation or when a domestic corporation where a foreigner holds stocks is shut down, the object of investment is the remaining property distributed to the foreigner following the closing of the relevant branch office or corporation. 

    - Loan or the amount of repayment from abroad under the Foreign Investment Promotion Act 

    - Stocks decided by a Presidential decree

    - Real estate in Korea

    - The payment for selling stocks of a Korean company that are owned by a foreigner or real estate under the Foreign Exchange Transactions Act.

  • Title
    If a foreigner changes his/her address, is a notification of change of address required?
  • Content
    A registered foreigner who has changed his/her place of sojourn should notify the immigration control office having jurisdiction over the sojourn place or the head of the relevant Si/Gun/Gu office within 14 days. 
    - Required documents; Passport, foreigner registration certificate, notification form, lease contract 
    ※ Failure to make a notification within 14 days from the date on which change in place of sojourn occurred is a violation of Article 36 of the Immigration Control Act and shall result in a fine of up to KRW 1 million.
  • Title
    Can a foreigner exchange his/her driver’s license into a Korean driver’s license?
  • Content
    A foreigner who hold a driver’s license issued by an authorized foreign agency can exchange the foreigner’s license with a Korean driver’s license after submitting a certificate from his/her home country’s embassy proving the authenticity of the foreign driver’s license and undergoing a physical exam and/or taking a written test.
    - A foreigner who was issued a driver’s license from a country which recognizes Korean driver’s license may only undergo the physical exam. To see the list of countries which recognize Korean driver’s license, visit the Road Traffic Authority Driver’s License Examination Office (http://dl.koroad.or.kr).
    - To exchange a driver’s license which was issued in a country which does not recognize Korean driver’s license, the license holder should undergo a physical exam and take written test.
    - Required documents: Foreign driver’s license, passport, foreign registration card, three color photos (3x4cm), certificate from home country’s embassy proving the authenticity of foreign driver’s license, KRW 10,000 (processing fee)
     
    ※ Only foreign driver’s license which are not expired are deemed valid, and temporary driver’s license, leaner’s permits and driving permits cannot be exchanged into Korean driver’s license.
    ※ KOTRA’s Inbound Investment Consulting Division provides foreign driver’s license exchange service from March, 2014 (Scheduled)
  • Title
    What businesses that benefit from foreign investment tax deduction can move into the free trade zone?
  • Content

    o Businesses that benefit from foreign investment tax deduction

    - A foreign-invested company in the manufacturing industry and meets the foreign investment standards in accordance with Article 2.2 of the Enforcement Ordinance of the Foreign Investment Promotion Act. However, a foreign-invested company that fails to meet the requirements of Article 2.2.1 of the Enforcement Ordinance of the Foreign Investment Promotion Act after the permission for moving in due to the increase of domestic capital for issuing new stocks will still be reckoned as foreign investment. 

     

    - Business in logistics such as handling, transporting, storing and displaying cargo.

    · Business in complex logistics such as international freight forwarding, international ship transaction and assembling including packaging, repairing and processing. 

    · Business in international logistics including repairing and assembling of ships and aircrafts (includes the equipments for the operation of ships and aircrafts). 

    · Business in supplying fuel, drinking water and meals for ships and aircrafts. 

    · Business in developing and renting logistics facilities. 

     

    o Requirements and details of tax deduction 

    - Requirements for facilities: Only applicable for newly established plant facilities

    - Requirements for amount of money

    · Manufacturing industry: Foreign investment of more than USD 10 million

    · Logistics industry: Foreign investment of more than USD 5 million

     

    o Tax (corporate tax) deduction 

    - For income generated by doing business that receives tax deductions, 100% tax deduction of amount subject to tax reduction* will be applied for the three years from the first tax year (if there is no income within five years from the initial business date, the tax year will be the fifth year of business) and 50% tax deduction will be applied to the next two years of the tax year. 

     

    * Corporate tax of the income generated by doing business that receives tax deductions multiplied by the ratio of foreign investment. 

  • Title
    What are the types of rent in Korea?
  • Content
    1. Deposit-only lease (Jeonse or Key Money Deposit)
    Deposit-only lease is a real property lease system unique to Korea. A substantial amount of money (generally 30 to 60% of the property value) is deposited with the owner, without interest, instead of paying monthly or yearly rent. In general, the typical lease term is two years. Upon expiry or termination of the lease, the deposit is returned in full.
     
    2. Monthly rental (Monthly Payment)
    The tenant pays rent each month on a pre-determined day in addition to depositing a sum equivalent to the total amount of monthly rent for one or two years. The advance deposit is much greater compared with Western standards: however, the greater the amount deposited in advance, the smaller the amount of monthly rent.
    If a tenant or lessee fails to pay the monthly rent, the lessor may deduct the amount from the deposit. The deposit is returned upon expiry of the lease. If a tenant is not able to pay monthly rent, the lessor may deduct the equivalent amount from deposit.
     
    3. Monthly Rent Paid Out of Deposit
    Under this lease, the lessee pays one year's (12 months) rent in advance. No additional deposit is required. The lease period ranges from one to three years as agreed upon by the two parties.
  • Title
    What is the process for direct investment by acquiring existing stocks?
  • Content

    o If a foreigner tries to make foreign investment by acquiring stocks or shares of a Korean corporation, he or she will declare in advance in accordance with the law of the Ministry of Trade, Industry & Energy. 

     

    o Exception of advance declaration

    -For the acquisition of stocks issued by a stock-listed corporation following the Financial Investment Services and Capital Market Act, the foreigner can declare within 30 days of the acquisition and report the modification. 

    - If a foreigner wishes to make foreign investment by acquiring stocks of a defense company, he or she will have to receive permission from the Minister of Trade, Industry & Energy under the law of the Ministry of Trade, Industry & Energy. 

     

    o Application form: [ ] Declaration [ ] Permission of Foreign Investment by Acquisition of Stocks (Attached form 3 of the Enforcement Regulations of the Foreign Investment Promotion Act) 

  • Title
    What are the documents for a foreign investor to prepare?
  • Content
    The documents a foreign investor shall submit differ, depending on whether the investor concerned is an individual or a corporation. A foreign investor of Japan and Taiwan shall submit the same documents with a national of the Republic of Korea and a Korean corporation.
     
                                                               <Documents to be Prepared by an Individual Investor>
    직접처리민원사무

    Seal impression registration certificate

    Put a seal or signature on a report card of seal impression and have it notarized((In case where no certification system exists))

    Certificate of inauguration acceptance

    Certificate of seal impression

    For all individuals to be registered as a director.

    - Korean/Japanese/Taiwanese: nationals shall place their seal on the certificate and attach the seal impression certificate.

    - Other foreign nationals shall sign the certificate and have it notarized.

    Abstracted resident registration or address certificate (for CEOs only)
    The documents shall be attached to the certificate of inauguration acceptance.
     
    - Korean/Japanese/Taiwanese nationals: Abstracted certified copy of resident registration or resident registration card.
    Other foreign nationals: An original copy of certificate of address, and certificate of signature notarized at the country of residence. (Not required for non-representative directors and auditors)

    Power of attorney

    When delegating registration of foreign investment 
    - Korean/Japanese/Taiwanese nationals shall place their seal on the power of attorney and attach the seal impression certificate
    - Other foreign nationals shall put their sign on the power of attorney and have it notarized.

    Copy of passport

    For all foreign nationals.

       

                            <Documents to be Prepared by Corporate Investors>

    직접처리민원사무
    Certified copy of corporate registration
    (Corporation as investors) 
    Korean/Japanese/Taiwanese corporations: 1 certified copy of corporate registration
    Others: Certificate of corporation or notarial certificate that proves the existence of business

    Seal impression registration certificate (for newly-founded corporations)

    Affix personal seal or signature of the representative director on seal impression registration certificate and have it notarized (In case where no certification system exists)

    Inauguration certificate
     
    Seal impression certificate
    For appointed executives of new corporation
    - Korea/Japan/Taiwan: Imprint the seal on the inauguration certificate and attach the seal impression certificate 
    - Other countries: Affix the signature on the inauguration certificate and have it notarized (In case where no certification system exists)
    Abstracted copy of resident registration 
     
    or 
     
    proof or address (for representative directors) 
    Attach to the inauguration certificate 
    - Korea/Japan/Taiwan: Abstract of resident registration or card
    - Other countries: notarized address certificate of respective countries
     (Not required for non-representative directors and auditors)

    Power of attorney

    When entrusting foreign investment registration:
    - Korea/Japan/Taiwan: Imprint the corporate seal on the power of attorney and have it notarized and submit it with seal impression certificate
    - Other countries: Affix the signature of the representative director of the investment corporation on the power of attorney and have it notarized

    Copy of passport

    All foreigners

     

  • Title
    If a foreign-invested company moves into a national industrial complex, would the company receive a reduction in rent fee?
  • Content

    o If a foreign-invested company does business that meets certain requirements, the company can pay reduced rent fee for state-owned land. 

     

    o In the case where the foreign-invested company receives 100% reduction of rent fee:

    - If a foreign investor makes investment that meets a certain criteria and if the foreign-invested company does business in the zone (individual-type foreign investment zone) where the foreign investor wishes to invest. 

    -If the business that benefits from tax deduction under Article 121.2.1.1 of the Restriction of Special Taxation Act has foreign investment of more than USD 1 million. 

    - Business that has foreign investment of more than USD 5 million and is subject to Article 2.1 of the Act on Special Measures for the Promotion of Specialized Enterprises, etc. for Components and Materials.  

     

    o In the case where the foreign-invested company receives 75% reduction of rent fee:

    - Manufacturing business with foreign investment over USD 5 million 

    - Business that contributes significantly to social overhead capital, industrial structure or financial independence of local government and that is decided by the Minister of Trade, Industry & Energy through the deliberation of the Foreign Investment Committee. 

     

    o In the case where the foreign-invested company receives 50% reduction of rent fee:

    -Land, etc. of national industrial complexes under Article 6 of the Industrial Sites and Development Act 

    -Land, etc. of urban high-tech industrial complexes and agricultural industrial complexes under Article 7, 7.2 and 8 of the Industrial Sites and Development Act

  • Title
    What civil affairs can KOTRA Invest Korea officials handle directly?
  • Content

    o The dispatched public servants of Invest Korea and employees of relevant organization are called dispatched officials and they can directly handle works related to civil affairs of foreign investors or foreign-invested companies. This kind of work is defined as “direct handling of civil affairs”. (Article 17.2 of the Foreign Investment Promotion Act)

     

    o Direct handling civil affairs

    Direct handling civil affairs
    Types of civil affairs Applicable laws
    1. Declaration of technology implementation contract Article 25.1 of the Foreign Investment Promotion Act
    2. Conformation of completion of investment in kind Article 30.3 of the Foreign Investment Promotion Act
    3. Business registration Article 8 of the Value-Added Tax Act
    4. Qualification for stay and permission for work Article 20 of the Immigration Act
    5. Revision and addition of place of work Article 21 of the Immigration Act
    6. Grant the qualification for stay Article 23 of the Immigration Act
    7. Permission to revise the qualification for stay Article 24.1 of the Immigration Act
    8. Permission of extending the period of stay Article 25 of the Immigration Act
    9. Permission of reentry Article 30.1 of the Immigration Act
    10. Registration of a foreigner Article 31 of the Immigration Act
    11. Declaration of modification of foreigner registration Article 35 of the Immigration Act
    12. Declaration of changed place of sojourn Article 36 of the Immigration Act
    13. Application for tax deduction Article 121.2.6 of the Restriction of Special Taxation Act
    14. Application for cash support Article 20.3.1 of the Enforcement Decree of the Foreign Investment Promotion Act

     

Share

  • Facebook
  • Twitter
  • Google
  • Twitter
PRINT

Recommended Content

2018 On FDI in Korea Q&A

더보기