According to Yonhap News,

(SEOUL=Yonhap News) The duty to report foreign investment changes will be lifted and relevant systems will be simplified.

The government will hold a cabinet meeting presided by Prime Minister Jung Hong-won on December 2 to deliberate and decide the revised bill of the Foreign Investment Promotion Act.

According to the government, foreign investors are obliged to report changes in important details, such as company name and investment amount and ratio.

The government says the revised law will reduce the burden on foreign investors to unnecessarily report changes.

However, they will have to report important changes, such as changes in tax reductions. The provisions for reporting foreign investment changes, which are currently regulated under types of investment, will also be integrated.

The provisions are regulated according to investment type, including acquisition of new stocks, acquisition of existing stocks, mergers, long-term loans and funding.

Regulations for investments in the defense industry are now under a reporting provision, which has confused foreign investors.

Once the revised law goes into effect, provisions for reporting foreign investment changes will be integrated and regulations for the defense industry will be separated from the reporting provision.

The government revised the law to upgrade the current system by simplifying and integrating what was a complicated foreign investment reporting system and eradicating unnecessary or redundant procedures.

The revised law lifts the reporting system for technology adoption agreements to promote the adoption of advanced technology and expands civil affairs services for foreign investors.

The cabinet meeting will handle nine bills, 31 presidential decrees and five general items.

josh@yna.co.kr

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