Investment Process

Living Information

Foreign Direct Investment

The Republic of Korea is a country which welcomes foreign direct investment and has a foreign investment promotion policy focusing on investor support. Foreign investors and foreign-invested companies can conduct business in Korea without restraint, except as otherwise prescribed by law.
※ Please refer to 2025 Business in Korea published by FISC for comprehensive and detailed information on FDI. (About us > Publication)

Forms of FDI

Acquisition of Equity Shares
Acquisition by a foreigner of shares or equity shares of a corporation or a business to establish continuous economic relations with a Korean corporation/business
Long-term Loans
Loan of at least 5 years to foreign invested companies by companies in a capital investment relationship with the foreign or relevant investor

*Long-term loans may be provided only when equity investment has been made, and the average loan period of at least five years must be satisfied.
Contribution to a Non-profit Organization(NPO), etc.
A contribution to an NPO or a company is recognized as FDI where the foreign contribution amount is at least KRW 50 million and accounts for 10% or more of the total amount and where certain conditions are met.
Reinvestment of Unappropriated Retained Earnings
Investment of a foreign-invested company’s unappropriated retained earnings for certain purposes such as construction or expansion of a factory.

Incorporation

Foreigners can do business by acquiring new or existing stocks (including incorporation) pursuant to the Foreign Investment Promotion Act or by establishing a local branch or a liaison office as prescribed in the Foreign Exchange Transaction Act.

How Foreigners Can Start Business in Korea

A foreign-invested company is a domestic corporation established under the Commercial Act and classified as a partnership company, a limited partnership company, a limited liability company, a limited company, or a stock company. The most common types of corporations established by foreign investors are a limited company and a stock company.

2025 Guide to Establishing a Business in Korea.pdf

Industrial Sites

Foreigners can do business by acquiring new or existing stocks (including incorporation) pursuant to the Foreign Investment Promotion Act or by establishing a local branch or a liaison office as prescribed in the Foreign Exchange Transaction Act.
The type and business category of the relevant company should be considered when choosing the optimal location of the factory site of a foreign-invested company. Generally, a manufacturing company chooses an industrial complex where the factory establishment procedure is relatively simple or constructs a factory at an individual site by altering the use of the site.

2025 Industrial Sites in Korea.pdf

Invest KOREA

KOTRA site

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