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Foreign Investment Policy Direction

The Korean government is pursuing foreign investment policies centering on (1) building a one-stop solution system; (2) improving regulations and systems related to foreign investment; (3) reforming regulations blocking invstment; and (4) supporting investment to enhance industrial competitiveness.

Establishing a one-stop solution system

The Korean government has established a system for resolving pain points of foreign-invested companies by holding regular roundtable discussions chaired by the Minister; roundtable discussions with CEOs of foreign-invested companies (chaired by the head of the Trade and Investment Office); roundtable discussions with foreign chambers of commerce in Korea (chaired by an Assistant Deputy Minister); departmental briefings; and seperate committees for interdepartmental coordination.

  • Every half year
    Minister-chaired roundtable discussion
  • Monthly
    Foreign-invested firm CEO meeting
    (Head of Trade and Investment Office)
    Foreign chambers of commerce meeting
    (Assistant Deputy Minister)
  • Labor, Environment,
    Taxation, Location
    Department briefings
  • Major greivances
    Consultative body of
    related agencies

Grievance Resolution

  • Foreign investment
    Foreign Investor
    Support Center

Improving regulations and systems related to foreign investment

The Korean government has been reforming regulations blocking foreign investment by lifting regulations on new industries and revamping regulations on foreign investment.

Lifting regulations on investment in new industries
  • prior entry regulationNegative list approach to regulations on investment in new industries
  • absence of systemEliminating "Grey Zone" of convergence new products and building "Fast Track"
Revamping regulations on foreign investment
  • designating foreign
    investment zones for development
    Expanding scope eligible for foreign investment zones
    to knowledge service industries
  • redefining investment terms for nonprofit organizations
    Clarifying requirments for nonprofit organizations in the field of science technology, academic research and art
  • reviewing investment-restricted industriesReviewing 29 industries where foreign investment is restricted

Supporting investment to enhance industrial competitiveness

The Korean government continues to support investment that enhances the nation’s industrial competitiveness by actively investing in emerging industries and providing foreign-invested companies with various types of incentives such as tax benefits, support for business sites, and support for research and development. 

Supporting investment in new industries (private sector)

Private Sector New Industry

Gov't R&D Investment KRW 11.5 tr ('16-'17)
Injecting KRW 7 tr starting from manufacturing sector
Nurturing talent for new industries in association with national projects
Expanding curriculum for new industries in engineering colleges
Policy financing of KRW 80 tr in '16
Tax benefit for growth industry R&D (75 items)
Creating initial market through public pilot projects
Establishment of 'Micro Factory' for pilot products
Supporting investment in new industries (private sector)
Tax incentivesUpdating High-Tech List
Developing key industries,
restructuring focused on
new energy industries
Support for business locationsExpanding Rent Reduction
Expanding rent reduction
formerly limited to manufacturing sector to new industries
R&D SupportExpanding R&D projects
Increasing joint R&D projects
between foreign companies and domestic institutes
('15 KRW 4.6 Bn → '16 KRW 7 Bn)