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Online Consulting

2018-11-30
tyler
[Investment Registration] mr
Hi,

Can a foreigner own shares in a Korean company? 
Can the foreigner own shares in a Korean company without needing to invest a minimum of at least $100,000 USD?
If so are there any requirements that the foreign investor must adhere to? does the foreigner have to have a specific visa?

If a foreigner can own shares in a Korean company without having to invest $100,000 USD, can the same foreigner work for the company that he/she owns shares in?

Kind regards 

Reply

2018-11-30
Consultant :
백진종
Hello !

Foreign investment under the Foreign Investment Promotion Act is defined as follows.

A foreigner needs to invest $ 100,000 or more in a Korean company and holds at least 10% of the company's stake. If the foreign investment amount is less than $ 100,000, it is deemed not to be a foreign investment.

Of course foreigners can invest less than 100,000 in Korean companies. However, because these investments are not investments for managerial purposes, Korean immigration authorities do not issue visas to them. 

These investments are not subject to the Foreign Investment Promotion Act, but are subject to the Foreign Exchange Transactions Act. Of course, in this case, if the company makes money, the investors will receive a dividend based on the percentage of shares held by them. 

Jay BAEK
Consultant
KOTRA