No, it is not accepted as foreign investment. Even if the total investment amount is more than KRW50 mil., it is required that more than 10% of the total shares are acquired by the foreign investor. In this case, only 4,000 out of the total 400,000 shares were acquired, making up only 1%. Thus, it cannot be accepted as foreign investment in accordance with FIPA.
However, in exceptional cases, an investment of more than 100mil. KRW, but less than 10% acquisition of shares, may be considered as foreign investment, if the contract was concluded pursuant to Art.2 (2) 2 of the Enforcement Decree of FIPA:
- A contract for seconding or electing officers
- A contract for supply or purchase of raw materials or products for a period of at least one year
- A contract for providing or introducing technology or for joint research and development