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ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT — 법갈피

영문법령 / ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT

ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT

대통령령타법개정시행 2025-10-01산업통상부 · 제35803호 · 공포 2025-10-01

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Foreign Investment Promotion Act and matters necessary for the enforcement thereof.

[This Article Wholly Amended on Jul. 30, 2009]

Article 2(Definitions of foreign investment) #

(1) "International economic cooperative organization prescribed by Presidential Decree" in Article 2 (1) 1 of the Foreign Investment Promotion Act (hereinafter referred to as the "Act") means:

1. An agency that conducts foreign economic cooperation affairs on behalf of a foreign government;

2. An international organization that deals with affairs concerning development finance, such as the International Bank for Reconstruction and Development, the International Financial Corporation, and the Asia Development Bank;

3. An international organization that deals with affairs concerning foreign investment, whether for itself or others.

(2) "Foreign investment" under Article 2 (1) 4 (a) of the Act refers to any of the following and the investment amount is at least 100 million won; provided, where a business fails to meet the requirements of the main clause of this paragraph due to partial transfer of stocks or shares (hereinafter referred to as "stocks, etc.") or capital reduction, etc. after it has been registered as a foreign-invested company under Article 21 (1) and (2) of the Act, it shall be also deemed a foreign investment: <Amended on Oct. 5, 2010; Jul. 28, 2016; Aug. 5, 2020>

1. Where a foreigner owns at least 10/100 of the total number of voting stocks issued by, or of the total equity investment of, a Korean corporation or enterprise (in cases of a corporation, including a corporation in the process of incorporation; hereinafter the same shall apply);

2. Where a foreigner who owns stocks, etc. of a Korean corporation or enterprise dispatches or appoints an executive officer (referring to a director, a representative director, a managing general partner, an auditor, or a person in a similar position, who has the authority to participate in decision-making for important management matters; hereinafter the same shall apply) to or at such corporation or company.

Article 5(Categories of businesses with restricted foreign investment) #

(1) The types of business in which foreign investment is restricted pursuant to Article 4 (3) of the Act and the details of restrictions shall be as follows: <Amended on Mar. 23, 2013; Oct. 15, 2014; Jul. 28, 2016; Aug. 5, 2020; Jun. 22, 2021; Aug. 27, 2024; Oct. 8, 2024; Oct. 1, 2025>

1. Each of the following publicly notified by the Minister of Trade, Industry and Resources after consultation with the competent Minister, in consideration of the scope of a reservation concerning domestic direct investment by nonresidents set out in Annex 1 (Reservations of the Code of Liberalization of Capital Movements) to the invitation agreements to join the Convention on the Organization for Economic Cooperation and Development for the Republic of Korea, in the Convention on the Organization for Economic Cooperation and Development, and details of a reservation set out in the Annex to the Convention on the Organization for Economic Cooperation and Development concerning bilateral or multilateral investments:

(a) A type of business (hereinafter referred to as "restricted type of business") in which foreign investment is not permitted or is partially permitted;

(b) The ratio of total foreign investment permitted (hereinafter referred to as "ratio of permissible foreign investment") for each type of business in which foreign investment is partially permitted under item (a);

(d) Other standards for permission, such as the timing of permission for foreign investment;

2. Matters determined by the Minister of Trade, Industry and Resources under Article 5-2 (3) where any of the following foreign investments falling under all of the following cases causes an impediment to the maintenance of national security under Article 4 (2) 1 of the Act (hereinafter referred to as "national security risk"):

(a) Where a foreigner intends to acquire de facto control over the management of an existing domestic company by acquiring its stocks, etc.;

(b) Any of the following cases where:

(i) Manufacturing defense materials defined under subparagraph 7 of Article 3 of the Defense Acquisition Program Act (hereinafter referred to as "defense materials") may be hindered;

(ii) Goods, etc. or technologies subject to permission or approval for exportation under Article 19-2 of the Foreign Trade Act are likely to be used for military purposes;

(iii) Contents of a contract, etc. classified as a State secret under Article 4 (1) 2 of the National Intelligence Service Act (hereinafter referred to as "State secret") are likely to be disclosed;

(iv) International efforts of the United Nations, etc. to maintain international peace and security may be substantially and critically hindered;

(v) The divulgence of the national core technology defined in subparagraph 2 of Article 2 of the Act on Prevention of Divulgence and Protection of Industrial Technology is highly likely;

(iv) A national high-tech strategic technology defined in subparagraph 1 of Article 2 of the Act on Special Measures for Strengthening and Protection of Competitiveness of National High-Tech Strategic Industry is highly likely to be leaked;

(2) Notwithstanding paragraph (1) 1, a foreigner may make an investment in a company, of which turnover ratio of a restricted type of business, does not exceed 1/100 of the total turnover, with no restriction prescribed in paragraph (1) 1.

(3) When the turnover ratio of a restricted type of business of a company falling under paragraph (2) has exceeded 1/100 of the total turnover of the company after a foreigner acquired stocks, etc. of the company, the stocks, etc. acquired in excess of the ratio of permissible foreign investment shall be transferred to a national of the Republic of Korea or a Korean corporation within 6 months from the settlement date of final accounts of the business year in which such ratio is exceeded; provided, the period of transfer may be extended up to 6 months with the approval of the Minister of Trade, Industry and Resources in unavoidable circumstances. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(4) No foreigner shall make an investment in any company concurrently running both a category of business in which foreign investment is not permitted and a category of business in which foreign investment is partially permitted under paragraph (1) 1 (a), and where intending to make an investment in any company running at least two categories of business in which foreign investment is partially permitted under paragraph (1) 1 (a), he or she is prohibited from making an investment in the company in excess of the ratio of foreign investment in the category of business in which the ratio of permissible foreign investment is lowest.

(5) Deleted. <Aug. 27, 2024>

(6) Deleted. <Aug. 27, 2024>

(7) Deleted. <Aug. 27, 2024>

(8) Deleted. <Aug. 27, 2024>

(9) Deleted. <Aug. 27, 2024>

(10) Deleted. <Aug. 27, 2024>

(11) Where any details of restrictions on foreign investment publicly announced by the Minister of Trade, Industry and Resources in the preceding year under Article 4 (4) of the Act are modified or added, the head of a relevant administrative agency shall compile such modifications or additions as at January 1 and notify the Minister of Trade, Industry and Resources thereof by the end of January, and the Minister of Trade, Industry and Resources shall compile and publicly announce them by the last day of February each year. <Amended on Mar. 23, 2013; Aug. 5, 2020; Oct. 1, 2025>

[This Article Wholly Amended on Jul. 30, 2009]

Article 5-2(Determination on whether foreign investment constitutes national security risk) #

(1) Before filing a report on foreign investment under Article 5 (1) through (3) of the Act, a foreigner may request the competent Minister or the Minister of Trade, Industry and Resources to verify whether the relevant foreign investment falls under all items of Article 5 (1) 2 by satisfying the matters determined and publicly notified by the Minister of Trade, Industry and Resources. In such cases, upon receipt of a request for verification, the competent Minister shall, without delay, request the Minister of Trade, Industry and Resources to verify whether the relevant foreign investment falls under the items of Article 5 (1) 2. <Amended on Oct. 1, 2025>

(2) If the Minister of Trade, Industry and Resources receives a request for verification under paragraph (1) (including where the Minister of Trade, Industry and Resources receives a request for verification from the competent Minister under the latter part of that paragraph), he or she shall notify the relevant foreigner of whether the relevant foreign investment falls under all items of Article 5 (1) 2 within 30 days from the date he or she requests verification to the competent Minister or the Minister of Trade, Industry and Resources; provided, if the Minister of Trade, Industry and Resources requests the foreigner to complement data for verification, the period required to complement the relevant data shall not be included in the period prescribed in the main clause. <Amended on Oct. 1, 2025>

(3) In any of the following cases, the Minister of Trade, Industry and Resources shall determine whether it constitutes a national security risk, subject to deliberation by the Foreign Investment Committee; in such cases, he or she shall undergo prior review by the expert committee under Article 34-2 (1) (hereinafter referred to as the "expert committee") before deliberation by the Foreign Investment Committee: <Amended on Oct. 1, 2025>

1. Where a foreigner reports that the relevant foreign investment falls under all items of Article 5 (1) 2;

2. Any of the following cases, other than those referred to in subparagraph 1:

(a) Where the competent Minister or the Director of the National Intelligence Service makes a request to examine whether it constitutes a national security risk;

(b) Where the Minister of Trade, Industry and Resources deems it necessary.

(4) The expert committee shall report the results thereof to the Foreign Investment Committee within 90 days from the date of receipt of a request for prior review without delay under the latter part, with the exception of the subparagraphs, of paragraph (3); provided, in unavoidable circumstances, the period may be extended only once by up to 30 days.

(5) The Minister of Trade, Industry and Resources shall determine whether the relevant foreign investment constitutes a national security risk within 45 days from the date on which the results of the preliminary examination are reported under paragraph (4) following deliberation by the Foreign Investment Committee. In such cases, if the Minister of Trade, Industry and Resources deems it necessary, he or she may determine to permit foreign investment following deliberation by the Foreign Investment Committee, attaching conditions, such as separate sale of a particular business part or compliance with security maintenance, etc. <Amended on Oct. 1, 2025>

(6) Upon making a determination under paragraph (5), the Minister of Trade, Industry and Resources shall, without delay, give notice to the relevant foreigner that he or she disallows or permits the relevant foreigner to acquire stocks, etc., specifying the following matters: <Amended on Oct. 1, 2025>

1. Whether such foreign investment constitutes a threat to national security;

2. Grounds for such determination;

3. Details of conditions (only applicable where conditions are attached pursuant to the latter part of paragraph (5)).

(7) If the Minister of Trade, Industry and Resources has made a determination under the former part of paragraph (5) that a foreign investment constitutes a threat to national security, the relevant foreigner who has already acquired stocks, etc. of companies with the foreign investment shall transfer such stocks, etc. to a national of the Republic of Korea, a Korean Corporation, or a foreigner who poses no threat to national security (hereinafter referred to as "Korean national, etc.") within six months from the date of such determination; where the Minister has made a determination on conditional approval for investment pursuant to the latter part of paragraph (5), the relevant foreigner shall transfer such stocks, etc. to a Korean national, etc. within six month from the date the Minister becomes aware of a violation of the relevant conditions; provided, the period of such transfer may be extended up to one year with the approval of the Minister of Trade, Industry and Resources in inevitable circumstances. <Amended on Oct. 1, 2025>

(8) If 3 years have elapsed from the date on which the Minister of Trade, Industry and Resources gives the following notification, the Minister of Trade, Industry and Resources may not deliberate on or determine whether the foreign investment constitutes a national security risk under paragraph (3); provided, this shall not apply where the Minister of Trade, Industry and Resources deems it necessary to conduct deliberation or make a determination again under paragraph (3) due to significant changes in circumstances after the following notification is made: <Amended on Oct. 1, 2025>

1. Where it is notified pursuant to paragraph (2) that the relevant foreign investment does not fall under any item of Article 5 (1) 2;

2. Where it is notified that the relevant foreigner is permitted to acquire stocks, etc. pursuant to paragraph (6).

(9) If the Minister of Trade, Industry and Resources deems it necessary for verification under the main clause of paragraph (2) and deliberation and determination under paragraph (3), he or she may request the heads of relevant administrative agencies and the Director of the National Intelligence Service to report or submit the details or data investigated in connection with whether a foreign investment constitutes a national security risk, and may request the President of the Korea Trade-Investment Promotion Agency and the heads of relevant public institutions to verify facts necessary for determining whether a foreign investment constitutes a national security risk. <Amended on Oct. 1, 2025>

(10) If a foreign investment is approved following deliberation under other statutes and regulations, the Minister of Trade, Industry and Resources may omit the procedures for deliberation and determination under paragraph (3) [limited to cases falling under Article 5 (1) 2 (b) (v) or (vi)]. <Amended on Oct. 1, 2025>

(11) Except as provided in paragraphs (1) through (10), details necessary for the procedures, methods, etc. for deliberation and determination on whether a foreign investment constitutes a national security risk under paragraph (3) shall be determined by the Minister of Trade, Industry and Resources. <Amended on Oct. 1, 2025>

[This Article Added on Aug. 27, 2024]

[(Previous) Article 5-2 moved to Article 5-3 <Aug. 27, 2024>]

Article 6(Reporting on foreign investment) #

(1) "Specially related persons prescribed by Presidential Decree" in Article 5 (1) and the former part of Article 6 (1) of the Act means any of the following persons:

1. Spouse and lineal ascendants and descendants of the relevant foreigner (including lineal ascendants and descendants of the spouse of the relevant foreigner);

2. A foreign corporation where the relevant foreigner and persons in such relationship as prescribed in subparagraph 1 or 3 together hold at least 50/100 of the total number of issued stocks or the total equity investment, or a foreign corporation virtually controlled by the relevant foreigner and said persons;

3. Employees of the relevant foreigner and persons prescribed in subparagraph 2 or 4 (referring to executive officers in the case of a corporation; in the case of an individual, they shall refer to trade employees, other employed persons through an employment contract, or persons who maintain their livelihood by means of money or property of the individual);

4. A foreign corporation where such a corporation prescribed in subparagraph 2, the relevant foreigner, and persons prescribed in subparagraphs 1 and 3 together hold at least 50/100 of the total number of issued stocks or the total equity investment.

(2) Where a report on modification filed under Article 5 (3) of the Act contains matters concerning early redemption of loans, the Minister of Trade, Industry and Resources shall, without delay, notify the details of such report to the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the Special Metropolitan City Mayor, Metropolitan City Mayors, the Special Self-Governing City Mayor, Do Governors, and the Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor"). In such cases, the Mayors/Do Governors shall, without delay, notify the head of the agency that manages the relevant foreign investment zone of the details under Article 18-3 (1) of the Act. <Amended on Aug. 5, 2020; Oct. 1, 2025>

[This Article Wholly Amended on Jul. 28, 2016]

Article 7(Permission of foreign investment) #

(1) "Defense industry company prescribed by Presidential Decree" in Article 6 (1) of the Act means a defense industry company defined under subparagraph 9 of Article 3 of the Defense Acquisition Program Act.

(2) The processing period for determining whether to grant permission pursuant to Article 6 (2) of the Act shall be 15 days from the date of receiving an application for permission; provided, such processing period may be extended by up to 15 days only on one occasion in inevitable circumstances.

(3) If the Minister of Trade, Industry and Resources deems that an application for permission for foreign investment filed under Article 6 (1) of the Act needs supplementing or correcting, he or she may require the relevant applicant to supplement or correct the application within a prescribed period for such supplement or correction. In such cases, the period spent for supplementing or correcting any information on the application shall be disregarded for the purpose of calculating the processing period under paragraph (2). <Amended on Oct. 1, 2025>

(4) The Minister of Trade, Industry and Resources shall request the Minister of National Defense to consult on an application for permission for foreign investment under Article 6 (1) of the Act pursuant to paragraph (3) of that Article, and the Minister of National Defense in receipt of such request for consultation shall present his or her opinions on the application to the Minister of Trade, Industry and Resources within 10 days of receipt of such request. <Amended on Oct. 1, 2025>

(5) Where the Minister of National Defense in receipt of the request pursuant to paragraph (4) deems that defense materials produced by a defense industry company applied for permission are replaceable by products of other domestic companies or that granting permission will not significantly affect national security, he or she shall consent to granting of such permission.

(6) In presenting his or her opinions under paragraph (4), the Minister of National Defense may request that the Minister of Trade, Industry and Resources grant permission on either of the following conditions: <Amended on Oct. 1, 2025>

1. Conditions necessary for continuous production of the relevant defense materials and for the maintenance of security;

2. The condition of dividing and selling defense industry facilities defined under subparagraph 11 of Article 3 of the Defense Acquisition Program Act (hereinafter referred to as "defense industry facilities") to a national of the Republic of Korea or a Korean corporation.

(7) Where permission is granted on the condition prescribed in paragraph (6) 2, a foreigner who has acquired the stocks, etc. before the sale of the defense industry facilities completes shall not participate in the management of the relevant defense industry company. <Amended on Aug. 5, 2020>

(8) Pursuant to Article 6 (6) of the Act, the Minister of Trade, Industry and Resources shall order a person who has acquired stocks, etc. in violation of Article 6 (1) or (4) of the Act to transfer such stocks, etc. to a national of the Republic of Korea or a Korean corporation within 1 month from the date he or she becomes aware of the violation. In such cases, the period for transfer shall be determined by the Minister of Trade, Industry and Resources within 6 months and such period may be extended by up to 6 months where it is acknowledged that inevitable circumstances exist. <Amended on Aug. 5, 2020; Oct. 1, 2025>

[This Article Wholly Amended on Jul. 28, 2016]

Article 19(Lease of state or public property) #

(1) "Companies meeting the minimum foreign investment ratio prescribed by Presidential Decree" in the main clause of Article 13 (2) of the Act means any foreign-invested company, at least 30/100 of the total number of voting stocks or total equity investment of which, is owned by a foreign investor. For the purpose of calculating the minimum foreign investment ratios, the stockholding ratio computed by the calculation methods provided for in Article 116-2 (11) and (12) of the Enforcement Decree of the Act on Restriction on Special Cases concerning Taxation shall not be included in the case of a foreign corporation, the stocks or equity investment of which is directly or indirectly owned by a national of the Republic of Korea (excluding those falling under Article 3) or a Korean corporation. <Added on Jun. 11, 2013; Jul. 28, 2016>

(2) "Period prescribed by Presidential Decree" in the main clause of Article 13 (2) of the Act means five years from the date of conclusion of a negotiated contract under Article 13 (1) of the Act. <Added on Jun. 11, 2013>

(3) "Number of regular workers prescribed by Presidential Decree" in Article 13 (2) 1 of the Act means the number of regular workers referred to in Article 20-2 (4) and Appendix 2, and "investment amount prescribed by Presidential Decree" in Article 13 (2) 2 of the Act means the amount of foreign investment provided for in Article 25 (1). <Amended on Jul. 28, 2016; Aug. 5, 2020>

(4) The rents for land, etc. under Article 13 (5) of the Act shall be the amount computed by multiplying the value of such land, etc. by the rate of at least 10/1000; provided, the rent rates for land, etc. in the area under Article 18 (1) 1 of the Act, designated as a foreign investment zone under the former part of that paragraph, shall be as follows: <Amended on Mar. 23, 2013; Jun. 11, 2013; Oct.1, 2025>

1. If the relevant land, etc. is State property, the rates determined by the Minister of Trade, Industry and Resources after consulting the Minister of Economy and Finance;

2. If the relevant land, etc. is public property, the rates determined by the Minister of Trade, Industry and Resources after consulting the head of the local government that is the owner of such land, etc.

(5) Deleted. <Aug. 5, 2020>

(6) "Foreign-invested company that runs a business prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 13-2 (1) of the Act means any company that builds a new factory facility to run any of the following businesses: <Amended on Mar. 23, 2013; Jun. 11, 2013; Oct. 15, 2014; Jul. 28, 2016; Aug. 5, 2020; Jul. 18, 2023; Oct. 1, 2025>

1. Any of the following businesses that make a substantial contribution to the national economy, such as employment growth:

(a) A business run by a foreign-invested company in any of the zones prescribed in subparagraphs 2 through 4 of Article 18 (1) the Act, designated as a foreign investment zone under the former part, with the exception of the subparagraphs, of that paragraph;

(b) A business granted tax reductions or exemptions pursuant to Article 121-2 (1) 1 of the Act on Restriction on Special Cases concerning Taxation;

(c) A business in which a foreign investment of at least five million U.S. dollars has been made, and which intends to be engaged in manufacturing (referring to the manufacturing business under the Korean Standard Industrial Classification; hereinafter the same shall apply);

(d) A business which meets all of the following conditions:

(i) The amount of foreign investment shall be at least 2.5 million U.S. dollars;

(ii) The number of regular workers shall be 70 or more;

(iii) It shall run a business provided for in any of subparagraph 1 through 3 of Article 25 (1) or a facility referred to in subparagraph 4 of that paragraph;

2. A business that makes a substantial contribution to the expansion of social overhead capital, industrial restructuring, financial independence of local governments, etc., which is determined by the Minister of Trade, Industry and Resources following deliberation by the Foreign Investment Committee.

(7) "Repatriating enterprise in a non-Seoul metropolitan area that runs a business prescribed by Presidential Decree" in the provision, with the exception of the subparagraphs, of Article 13-2 (1) of the Act means repatriating enterprises running any of the following business: <Added on Jun. 22, 2021; Oct. 1, 2025>

1. Any of the following businesses that make a substantial contribution to the national economy, such as employment growth:

(a) A business whose amount of investment related to repatriation (hereinafter referred to as "amount of investment for repatriation") calculated by the method determined and publicly notified by the Minister of Trade, Industry and Resources, including the amount of purchase of land and investment in facilities, is at least 1 billion won:

(i) A product or service that utilizes advanced technologies under Article 5 (1) of the Industrial Development Act or a business producing advanced products under that paragraph (limited to those recognized as advanced technologies or advanced products, as determined and publicly notified by the Minister of Trade, Industry and Resources);

(ii) A business referred to in Article 121-2 (1) 1 of the Act on Restriction on Special Cases concerning Taxation;

(b) A manufacturing business with an amount of repatriation investment of at least five billion won;

(i) The amount of repatriation investment shall be at least 2.5 billion won;

(ii) The number of regular workers in workplaces newly established or expanded in Korea shall be 70 or more;

(iii) It shall operate any of the following business or facilities:

2. A business that makes a substantial contribution to the expansion of social overhead capital, industrial restructuring, financial independence of local governments, etc., which is determined by the Minister of Trade, Industry and Resources, subject to deliberation by the Committee for Assisting Repatriating Enterprises established under Article 6 of the Act on Assistance to Korean Offshore Enterprises in Repatriation.

(8) The reduction or exemption rate of rents for State-owned land, etc. under Article 13-2 (1) of the Act shall be determined by the head of the central government agency having the jurisdiction of the State-owned land, etc. (including persons to whom duties have been delegated or entrusted pursuant to Article 28 or 42 (1) of the State Property Act; hereinafter the same shall apply) within the limit set forth below: <Amended on Apr. 1, 2011; Jun. 11, 2013; Oct. 15, 2014; Apr. 20, 2015; Jul. 28, 2016; Mar. 31, 2020; Aug. 5, 2020; Jun. 22, 2021; Dec. 5, 2023>

1. For land, etc. referred to in Article 13-2 (1) 1 of the Act: Reduction or exemption rates shall be as follows:

(a) 100/100 of rents for the relevant land, etc. in the case of the following businesses:

(i) A business run by a foreign-invested company in a foreign investment zone designated under Article 18 (1) 2 of the Act out of businesses provided for in paragraph (6) 1 (a), and a business provided for in paragraph (6) 1 (b) or (7) 1 (a);

(ii) A business producing materials, components, or equipment defined under subparagraph 1 or 2 of Article 2 of the Act on Special Measures for Strengthening the Competitiveness of Materials, Components, and Equipment Industries (limited to a business taking occupancy in a foreign investment zone developed under Article 18 of the Act for the purpose of leasing or selling to foreign-invested companies which produce materials, components, or equipment defined under subparagraph 1 or 2 of Article 2 of the Act on Special Measures to Strengthen Competitiveness and Stabilize Supply Chain of Materials, Components, and Equipment Industries out of businesses provided for in paragraph (6) 1 (c));

(iii) A business with at least 200 regular workers, of the businesses provided for in paragraph (6) 1 (d) or (7) 1 (c);

(b) 90/100 of rents for the relevant land, etc. in the case of a business with at least 150 but no more than 200 regular workers, of the businesses provided for in paragraph (6) 1 (d) or (7) 1 (c);

(i) A business prescribed in paragraph (6) 1 (c) [excluding a business eligible for reduction or exemption under item (a) (ii)] or a business prescribed in paragraph (7) 1 (b);

(ii) A business with at least 70 but no more than 150 regular workers, of the businesses provided for in paragraph (6) 1 (d) or (7) 1 (c);

(iii) A business referred to in paragraph (6) 2 or paragraph (7) 2;

(d) 50/100 of rents for the relevant land, etc. in the case of a business run by a foreign-invested company in a foreign investment zone designated under Article 18 (1) 3 or 4 of the Act among the businesses provided for in paragraph (6) 1 (a);

2. For land, etc. referred to in Article 13-2 (1) 2 and 3 of the Act: 50/100 of rents for the relevant land, etc.

(9) The reduction or exemption rate of rents for State-owned land, etc. under Article 13-2 (2) of the Act shall be determined by the head of the central government agency having the jurisdiction over the relevant State property within 100/100. <Amended on Apr. 1, 2011; Jun. 11, 2013; Aug. 5, 2020; Jun. 22, 2021>

(10) A foreign-invested company, a repatriating enterprise in a non-Seoul metropolitan area, or an operator of a facility Improving Foreign Investment Environment who intends to receive a rent reduction or exemption for land, etc. owned by the State under Article 13-2 (1) or (2) shall file an application for such reduction or exemption with the head of the central government agency having jurisdiction over the relevant State property. <Amended on Apr. 1, 2011; Jun. 11, 2013; Aug. 5, 2020; Jun. 22, 2021>

(11) A foreign-invested company or operator of establishments built to improve a foreign-investment environment (hereafter in this Article, referred to as "foreign-invested company, etc.") who intends to receive a rent reduction or exemption for land, etc. owned by a local government under Article 13-2 (3) of the Act shall file an application for such reduction or exemption with the head of the relevant local government; <Amended on Jun. 11, 2013; Aug. 5, 2020; Jun. 22, 2021>

(12) A foreign-invested company, etc. that intends to receive a rent reduction or exemption for land, etc. owned by a local government pursuant to Article 13-2 (3) of the Act shall meet both of the following requirements: <Added on Jul. 28, 2016; Aug. 5, 2020; Jun. 22, 2021>

1. When the foreign-invested company, etc. falls under the main clause of Article 13 (2) of the Act: it shall meet the minimum foreign investment ratio referred to in paragraph (1) during the lease term; provided, it shall maintain the foreign investment ratio at 10/100 or higher when domestic capital increases without any decrease of the amount of foreign investment after concluding a contract;

2. When the foreign-invested company, etc. falls under the proviso of Article 13 (2) of the Act: it shall maintain the foreign investment ratio at 10/100 or higher.

(13) Except as provided in paragraphs (11) and (12), specific matters, such as the types of businesses eligible for rent reductions or exemptions for land, etc. owned by a local government, the reduction or exemption rate of rents, shall be determined by municipal ordinance of a local government, taking into account the economic effects of the relevant foreign investment, such as the creation of employment, the transfer of technology, and the effect on the financial independence of the relevant local government. <Amended on Jun. 11, 2013; Jul. 28, 2016; Jun. 22, 2021>

(14) Upon receipt of an application for a rent reduction or exemption for land, etc. owned by the State or a local government filed under paragraph (10) or (11), the head of the central government agency or the head of the local government having the jurisdiction of such State-owned property shall determine whether to grant a rent reduction or exemption to the relevant applicant after reviewing whether the application meets the requirements for reduction or exemption prescribed in paragraphs (6) through (9) and (12), and verify if the relevant foreign-invested company remains in compliance with the requirements for reduction or exemption at least once a year. <Added on Jul. 28, 2016; Jun. 22, 2021>

[This Article Wholly Amended on Jul. 30, 2009]

Article 20-2(Uses of cash grants for foreign investment) #

(1) "Ratio prescribed by Presidential Decree" in the provision, with the exception of the subparagraphs, of Article 14-2 (1) of the Act means 30/100. <Added on Aug. 5, 2020>

(2) "Uses prescribed by Presidential Decree, including the creation or extension of factory facilities" in the provisions, with the exception of the subparagraphs, of Article 14-2 (1) of the Act means any of the following uses: <Amended on Oct. 5, 2010; Aug. 5, 2020>

1. Purchase costs of, or rents for, land or buildings for establishing a factory facility or research facility;

2. Building costs of a factory facility or research facility;

3. Purchase costs of capital goods, research equipment and materials to be used for projects or research at a factory facility or research facility;

4. Installation costs of infrastructure, such as electricity and communications facilities necessary for establishing a factory facility or research facility;

5. Employment subsidies or education and training subsidies.

(3) "Materials, components, and equipment ... prescribed by Presidential Decree" in Article 14-2 (1) 3 of the Act means materials, components, and equipment as defined in Article 2 of the Enforcement Decree of the Act on Special Measures to Strengthen Competitiveness and Stabilize Supply Chain of Materials, Components, and Equipment Industries. <Amended on Oct. 15, 2014; Apr. 20, 2015; Mar. 31, 2020; Aug. 5, 2020; Dec. 5, 2023>

(4) The number of regular workers referred to in Article 14-2 (1) 4 of the Act shall be as specified in Appendix 2. <Amended on Aug. 5, 2020>

(5) "Standards prescribed by Presidential Decree" in Article 14-2 (1) 6 of the Act means where a foreign investor falls under any of the following cases: <Amended on Mar. 11, 2014; Oct. 15, 2014; Sep. 18, 2018; Aug. 5, 2020; Jul. 7, 2023; Jul. 18, 2023; Oct. 1, 2025>

1. Where the foreign investor, in its capacity as a domestic corporation that serves as a support and control tower for at least 2 foreign corporations in terms of their production, sales, distribution, personnel affairs, and other core corporate functions, establishes a local headquarters in the Republic of Korea that meets the criteria and procedure requirements prescribed by Decree of the Ministry of Trade, Industry and Resources on regular workers, holding company, etc.;

2. Where the foreign investor engages in a local specialized industry defined in subparagraph 6 of Article 2 of the Special Act on Local Autonomy, Decentralization and Balanced Regional Development or mega-region industry defined in subparagraph 8 of that Article, and such industry is deemed likely to contribute to developing the regional economy;

3. Where it is recognized that the foreign investor will significantly contribute to the development of domestic industry and technology by researching and developing technologies referred to in Article 121-2 (1) 1 of the Act on Restriction on Special Cases concerning Taxation or advanced technologies or advanced products referred to in Article 5 (1) of the Industrial Development Act.

4. Where the foreign investor intends to replace the existing factory facilities with new ones falling under any of the following, which are deemed to meet the standards publicly notified by the Minister of Trade, Industry and Resources and to significantly contribute to the development of the domestic industry and technology:

(a) Facilities for commercializing national strategic technology under Article 24 (1) 2 (a) (ii) of the Act on Restriction on Special Cases concerning Taxation;

(b) Factory facilities to run a business under Article 121-2 (1) 1 of the Act on Restriction on Special Cases concerning Taxation;

(c) Factory facilities to run a business utilizing advanced technology and advanced products under Article 5 (1) of the Industrial Development Act.

[This Article Wholly Amended on Jul. 30, 2009]

Article 20-3(Applications for, and payment of, cash grants for foreign investment) #

(1) A foreigner who intends to obtain a cash grant from the State pursuant to Article 14-2 (1) of the Act shall file an application for cash grant in the form prescribed by Decree of the Ministry of Trade, Industry and Resources, which shall be accompanied by an investment plan that includes the following matters, with the Minister of Trade, Industry and Resources: <Amended on Mar. 23, 2013; Jul. 28, 2016; Oct. 1, 2025>

1. Total amount of investment and details thereof;

2. Scale of employment;

3. Effects of technological diffusion;

4. Level of contribution to the local economy;

5. Other matters determined by the Minister of Trade, Industry and Resources.

(2) Upon receipt of an application filed under paragraph (1), the Minister of Trade, Industry and Resources shall evaluate the investment plan and consult with the Minister of Economy and Finance on whether to award a cash grant, the grant amount, etc. after negotiating with the relevant foreigner. <Amended on Mar. 23, 2013; Dec. 30, 2015; Oct. 1, 2025>

(3) The Minister of Trade, Industry and Resources may pay a cash grant in lump sum within one year from the date on which a decision to award the cash grant is made, or in up to 10 installments within 5 years from the date of such decision. <Amended on Mar. 23, 2013, Oct. 1, 2025>

(4) Where the Minister of Trade, Industry and Resources pays a cash grant in installments under paragraph (3), he or she may adjust the amount and timing for the cash grant paid in installments, taking into account any modification to the investment plan and the outcomes of executing the cash grant paid in installments. <Amended on Mar. 23, 2013, Oct. 1, 2025>

(5) Except as provided in paragraphs (1) through (4), matters necessary for providing cash grants and other matters shall be determined by the Minister of Trade, Industry and Resources following deliberation by the Foreign Investment Committee. <Amended on Mar. 23, 2013, Oct. 1, 2025>

[This Article Wholly Amended on Jul. 30, 2009]

Article 21(Administration of foreign investment support center) #

(1) Public officials or executive officers or employees of a foreign investment-related agency who have been dispatched to the Foreign Investment Support Center (hereinafter referred to as the "Investment Support Center") under Article 15 (2) of the Act (hereinafter referred to as "dispatched officers") shall be subject to direction and supervision by the president of the Korea Trade-Investment Promotion Agency with respect to their services. <Amended on Jul. 30, 2009>

(2) The president of the Korea Trade-Investment Promotion Agency shall prepare a written opinion on performance evaluation of the public officials dispatched under paragraph (1) in accordance with Article 17 (3) of the Regulations on Performance Evaluation of Public Officials or Article 31-3 (3) of the Decree on the Appointment of Local Public Officials, and forward the written opinion to the heads of the relevant administrative agencies to which such public officials belong, and the heads of the relevant administrative agencies in receipt of such written opinions shall take them into consideration when evaluating the performance of the relevant public officials. <Amended on Jul. 30, 2009>

(3) In order to efficiently perform foreign investment supporting affairs, the president of the Korea Trade-Investment Promotion Agency may operate a general administrative support center that mainly consist of dispatched officers and teams exclusively responsible for foreign investment inducement that mainly consist of officers and employees of the Korea Trade-Investment Promotion Agency, and may require the dispatched officers to concurrently perform the duties of the staff in exclusive charge of complaint settlement pursuant to Article 21-4 (5). <Amended on Jul. 30, 2009; Oct. 5, 2010>

(4) The president of the Korea Trade-Investment Promotion Agency shall prepare an annual comprehensive plan for foreign investment inducement and submit it to the Minister of Trade, Industry and Resources by January 31 each year, and shall analyze quarterly foreign investment achievements and report the results thereof to the Minister of Trade, Industry and Resources within 1 month after the expiration of each quarter. <Amended on Jul. 30, 2009; Mar. 23, 2013; Oct. 1, 2025>

(5) Deleted. <Oct. 27, 1999>

(6) Deleted. <Oct. 27, 1999>

(7) Deleted. <Oct. 27, 1999>

(8) Except as provided in paragraphs (1) through (4), matters necessary for the organization and operation of the Investment Support Center shall be determined by the president of the Korea Trade-Investment Promotion Agency following deliberation by the Foreign Investment Committee. <Amended on Jul. 30, 2009>

Article 21-2(Designation and duties of project managers) #

(1) The president of the Korea Trade-Investment Promotion Agency may designate any of the following persons as a project manager for each foreign investor or each foreign-invested company in order to render efficient support to investment affairs of a foreign investor or foreign-invested company. In such cases, the president of the Korea Trade-Investment Promotion Agency shall notify the relevant foreign investor or foreign-invested company of the designated project manager:

1. Employees of the Korea Trade-Investment Promotion Agency;

2. Dispatched officers;

3. Public officials or employees of a central administrative agency, local government, and public institution provided for in the Act on the Management of Public Institutions (hereinafter referred to as "public institution") related to foreign investment. In such cases, he or she shall obtain approval from the head of the relevant agency, government or institution.

(2) The president of the Korea Trade-Investment Promotion Agency may notify the central administrative agency, local governments and public institutions in charge of foreign investment-related affairs (referred to as "related administrative agencies, etc." hereafter in this Article) of the project manager designated for each foreign investor or foreign- invested company under paragraph (1) (hereinafter referred to as "project manager").

(3) The related administrative agencies, etc. upon receipt of the notification under paragraph (2) shall positively cooperate therewith when a project manager requests cooperation with respect to the provision of materials and handing of civil affairs related to a foreign investment.

(4) A project manager shall perform the following duties:

1. Collection and provision of data or information and arranging interviews at the request of a foreign investor or foreign- invested company;

2. Presentation of opinions regarding support related to foreign investments under Articles 9, 13, 14 and 14-2 of the Act;

3. Assistance in the affairs and vicarious execution of civil affairs related to foreign investments under Articles 15 and 17 of the Act;

4. Assistance in resettlement of the officers, employees and their families of a foreign investor or foreign- invested company, such as housing rental and guidance for school admission;

5. Other affairs related to foreign investments.

(5) The president of the Korea Trade-Investment Promotion Agency may constitute and operate a consultative council for support purposes with foreign investors, related administrative agencies, etc., if necessary to ensure that project managers efficiently perform their duties specified in paragraph (4). <Added on Dec. 30, 2015>

(6) The president of the Korea Trade-Investment Promotion Agency shall provide project managers with opportunities for education necessary to improve their quality and expertise. <Amended on Dec. 30, 2015>

(7) The president of the Korea Trade-Investment Promotion Agency may accord preferential treatment to project managers in relation to promotion, transfer, and reward. <Amended on Dec. 30, 2015>

[This Article Wholly Amended on Jul. 30, 2009]

Article 21-3(Functions of foreign investment ombudsman) #

(1) The term of office of a foreign investment ombudsman commissioned under Article 15-2 (1) of the Act (hereinafter referred to as the "foreign investment ombudsman") shall be three years. <Amended on Oct. 5, 2010>

(2) A foreign investment ombudsman shall perform the following duties: <Amended on Oct. 5, 2010>

1. Investigation and handling of complaints from foreign investors and foreign-invested companies;

2. Preparation of policy measures for improving a foreign investment system and recommendation on the implementation thereof to the relevant administrative agencies and public agencies;

3. Other necessary matters for handling complaints from foreign investors and foreign-invested companies.

(3) "Standards prescribed by Presidential Decree" in Article 15-2 (3) 1 of the Act means any of the following: <Amended on Oct. 5, 2010>

1. Where it is necessary for investigating whether a foreign investment-related system complies with international practices or standards;

2. Where it is necessary for tackling difficulties experienced by foreign-invested companies in their management or improving the related systems;

3. Where it is necessary for improving the living conditions of foreign investors and foreigners working for foreign-invested companies.

(4) A recommendation for corrective measures under Article 15-2 (4) of the Act (hereafter referred to as "recommendation for corrective measures" in this Article) shall be made in a document specifying the following matters: <Added on Oct. 5, 2010>

1. Current status and problems of related statutes and regulations, systems, and policies;

2. Details of recommendation for corrective measures;

3. Matters recognized by the foreign investment ombudsman as being necessary, such as the reply deadline for related administrative agencies and public agencies.

(5) "Period prescribed by Presidential Decree" in Article 15-2 (5) of the Act means 30 days after receipt of a recommendation to take corrective measures from the foreign investment ombudsman pursuant to Article 15-2 (4) of the Act. <Added on Jun. 11, 2013>

(6) The foreign investment ombudsman may check and inspect the performance of the details of recommendations for corrective measures. <Added on Oct. 5, 2010; Jun. 11, 2013>

(7) The foreign investment ombudsman shall prepare an annual report including the following matters pursuant to Article 15-2 (7) of the Act and submit it to the Foreign Investment Committee by the end of February of the following year: <Added on Jun. 11, 2013>

1. Current status of the regulations and systems raised as grievances by foreign investors and foreign-invested companies;

2. Results of improvement of the regulations and systems by the foreign investment ombudsman in the previous year;

3. Other matters concerning supportive activities to tackle grievances of foreign investors and foreign-invested companies.

[This Article Wholly Amended on Jul. 30, 2009]

[Moved from Article 21-4; (Previous) Article 21-3 moved to Article 21-4 <Oct. 5, 2010>]

Article 21-4(Operation of grievance committee) #

(1) Deleted. <Feb. 24, 2001>

(2) The foreign investment ombudsman shall be the head of the grievance committee established under Article 15-2 (10) of the Act (hereinafter referred to as "grievance committee"). <Amended on Oct. 5, 2010; Jun. 11, 2013>

(3) The head of the grievance committee may request cooperation from a relevant administrative agency or a foreign-investment related agency to settle complaints from foreign investors and foreign-invested companies. In such cases, the agency upon receipt of a request for cooperation shall present the results of resolving complaints or its opinion on such matters within seven days after receipt of the request. <Amended on Jul. 30, 2009; Oct. 5, 2010>

(4) Deleted. <Dec. 31, 2001>

(5) In order to efficiently settle complaints from foreign investors and foreign-invested companies, the head of the grievance committee may designate the staff in exclusive charge of settling complaints for each region or foreign-invested company, and may administer such staff. <Amended on Oct. 5, 2010>

(6) Where an employee belonging to the grievance committee hears opinions or visits a site under Article 15-2 (3) of the Act to support the duties of the foreign investment ombudsman, he or she shall carry identification indicating his or her authority and present it to relevant persons. <Added on Oct. 5, 2010>

(7) The head of the grievance committee shall analyze the results of settling complaints raised by foreign-invested companies on a quarterly basis and report them to the Minister of Trade, Industry and Resources within 1 month after expiration of each quarter. <Amended on Jul. 30, 2009; Oct. 5, 2010; Mar. 23, 2013; Oct. 1, 2025>

(8) Except as provided in paragraphs (2), (3), (5), (6), and (7), matters necessary for the organization and operation of the grievance committee shall be determined by the president of the Korea Trade-Investment Promotion Agency following deliberation by the Foreign Investment Committee. <Amended on Jul. 30, 2009; Oct. 5, 2010>

[This Article Added on Oct. 27, 1999]

[Moved from Article 21-3; (Previous) Article 21-4 moved to Article 21-3 <Oct. 5, 2010>]

Article 23(Foreign Investment Inducement Council) #

(1) In order to deliberate and decide on the following matters, a Foreign Investment Inducement Council (hereinafter referred to as the "Council") may be established in the Special Metropolitan City, a Metropolitan City, the Special Self-Governing City, a Do, and the Special Self-Governing Province (hereinafter referred to as "City/Do"): <Amended on Oct. 15, 2014>

1. A plan to induce, publicize and support foreign investments;

2. Consultation for settling grievances of foreign investors or foreign-invested companies;

3. Matters concerning consultation for proper handling of civil petitions as prescribed in Article 17 of the Act;

4. Other matters deemed necessary by the Mayor/Do Governor for inducing foreign investments.

(2) A public official in the position of director or higher position among those who belong to the City/Do shall serve as the chairperson of the Council, and the following persons shall serve as the members thereof:

1. Persons designated by the Mayor/Do Governor from among the public officials of the City/Do;

2. From among the public officials or other employees of the competent Si/Gun/Gu (Gu refers to an autonomous Gu) or special local administrative agency or of agencies related to the handling of civil petitions as prescribed in Appendices 1 and 2 of the Act, persons designated by the head of the competent Si/Gun/Gu (the head of a Gu refers to the head of autonomous Gu; hereinafter the same shall apply), the head of the competent special local administrative agency, or the head of the relevant agency, upon the request of the Mayor/Do Governor;

3. From among the heads of the trade centers, branches, and offices of the Korea Trade-Investment Promotion Agency, persons designated by the head of the Investment Support Center at the request of the Mayor/Do Governor;

4. Persons commissioned by the Mayor/Do Governor from among persons with extensive experience in and knowledge of the field of foreign investment.

(3) In designating or commissioning members of the Council as prescribed in paragraph (2), members who can participate in all the meetings of the Council and members who, according to the decision of the Chairperson of the Council, can participate in those meetings only at which matters relevant to the members concerned are discussed may be divided in the process of the designation or commission. <Amended on Jan. 5, 2021>

(4) The resolution of a meeting of the Council shall require the presence of a majority of members who can participate in such meeting pursuant to paragraph (3) and the consent of a majority of members present.

(5) Except as provided in paragraphs (1) through (4), matters necessary for the operation of the Council shall be determined by the Mayor/Do Governor subject to resolution by the Council.

[This Article Wholly Amended on Jul. 30, 2009]

Article 24(Handling of civil petitions by foreign investors) #

(1) The scope of civil petitions to be handled directly, and the handling period, as prescribed in Article 17 (2) and (5) of the Act, shall be as specified in Appendix 3. <Amended on Jul. 30, 2009>

(2) The handling period for civil petitions to be handled in bulk and civil petitions to be individually handled as prescribed in Article 17 (5) of the Act shall be as follows: <Amended on Jul. 30, 2009>

1. For civil petitions to be handled in bulk: the period specified in Appendix 4; provided, where civil petitions concerning permission, etc. on the right column of Appendix 1 of the Act are individually received, the handling period under the relevant statutes and regulations;

2. For the civil petitions to be handled individually: the handling period under the relevant statutes and regulations.

(3) Where the head of a civil affairs administrative agency, having received civil petitions to be handled in bulk, has requested consultation with the head of a relevant agency in accordance with Article 17 (4) of the Act, the head of the relevant agency shall submit his or her opinions to the head of the civil affairs administrative agency by the day preceding the date on which such handling period as specified in Appendix 4 expires (where the handling period as specified in Appendix 4 exceeds seven days, by two days before the last day of the handling period). <Amended on Jul. 30, 2009>

(4) The record date for calculating the handling period under paragraphs (1) and (2) shall be the day of the receipt of the civil petition concerned by the head of the civil affairs administrative agency or the dispatched officer concerned. <Amended on Jul. 30, 2009>

(5) "Permission, etc. as prescribed by Presidential Decree" in subparagraph 13 of Appendix 2 of the Act means such business matters of civil petitions as specified in Appendix 5. <Amended on Jul. 30, 2009>

(6) Where the head of a civil affairs administrative agency or a dispatched officer makes notification of his or her refusal to grant permission in accordance with the latter part of Article 17 (5) of the Act, he or she shall specify the reasons and the legal basis for the refusal. <Amended on Jul. 30, 2009>

(7) "Period prescribed by Presidential Decree" in the former part of Article 17 (7) of the Act means three days. <Amended on Jul. 30, 2009>

(8) Where the head of a civil affairs administrative agency grants permission with conditions attached in accordance with Article 17 (10) of the Act, he or she shall attach a condition that insufficient points be supplemented by the time as prescribed by one of the following subparagraphs: <Amended on Jul. 30, 2009>

1. For permission, etc. prescribed in subparagraph 1 or 2 of Appendix 1 of the Act: the time of the application for construction permission (where construction permission is considered to have been granted, the time of the report on the commencement of construction);

2. For permission, etc. prescribed in subparagraph 3 of Appendix 1 of the Act: the time of the report on the commencement of construction;

3. For permission, etc. prescribed in subparagraph 4 of Appendix 1 of the Act: the time of the report on the commencement of operations;

4. For permission, etc. prescribed in subparagraph 5 of Appendix 1 of the Act: the time of the registration into the building ledger.

(9) Where the person who receives permission, etc. with conditions attached in accordance with Article 17 (10) of the Act files an application for permission, etc. under any of subparagraphs of paragraph (8), he or she shall submit to the head of the civil affairs administrative agency a written confirmation that he or she has fully implemented the aforementioned conditions. <Amended on Jul. 30, 2009>

(10) Deleted. <Jan. 13, 2004>

(11) Where a reasonable and objective ground is deemed to exist for not being able to properly handle civil petitions within the handling period prescribed in paragraph (1) or (2), the head of a civil affairs administrative agency may extend the handling period only once. In such cases, the head of the civil affairs administrative agency concerned shall determine an additional period to be extended by estimating the necessary time for the proper handling, and notify the applicant for the permission, etc. concerned (where the application for permission has been filed vicariously by the Investment Support Center, the head of the Investment Support Center) of the extended handling period and the reasons for the extension of the handling period, and where the head of the Investment Support Center has received the notification, he or she shall, without delay, notify the original applicant for the permission, etc. concerned of the details of said notification. <Amended on Jul. 30, 2009>

(12) Where supplement or correction is deemed to be necessary with respect to the contents of the application for the handling of civil petitions to be handled in bulk, civil petitions to be individually handled, or civil petitions to be directly handled as prescribed in Article 17 of the Act, the head of a civil affairs administrative agency or a dispatched officer may determine the period for the supplementation or correction and request the person concerned to supplement or correct them within such period. In such cases, the period consumed for such supplementation or correction shall not be included in the handling period as prescribed in paragraphs (1) and (2). <Amended on Jul. 30, 2009>

(13) Except as provided in the Act or this Decree, the handling of civil petitions which are concerned with foreign investment shall be governed by the Civil Petitions Treatment Act. <Amended on Jul. 30, 2009; Jun. 22, 2021>

Article 25(Designation of foreign investment zones) #

(1) "Foreign investment meeting the standards prescribed by Presidential Decree" in Article 18 (1) 2 of the Act means any of the following foreign investments. In such cases, an amount of money equivalent to the holding ratio calculated by the methods provided for in Article 116-2 (11) and (12) of the Enforcement Decree of the Act on Restriction on Special Cases concerning Taxation shall be disregarded for the purpose of computing the amount of foreign investment in cases of a foreign corporation, the stocks or equity shares of which, are directly or indirectly owned by a national of the Republic of Korea (excluding persons falling under Article 3) or a Korean corporation: <Amended on Sep. 9, 2009; Oct. 5, 2010; Mar. 23, 2013; Jun. 11, 2013; Oct. 15, 2014; Jul. 28, 2016; Mar. 29, 2017; Jul. 28, 2020; Aug. 5, 2020; Jan. 5, 2021; Jun. 22, 2021; Aug. 26, 2025; Oct. 1, 2025>

1. Where the amount of foreign investment is at least 30 million U.S. dollars and new factory facilities are established to engage in any of the following businesses:

(a) Manufacturing business;

(b) Business under Article 121-2 (1) 1 of the Act on Restriction on Special Cases concerning Taxation;

(c) Computer programming business, system integration and management business in the knowledge service industry, and data processing business, hosting (referring to services such as lease and operation of servers), and related service-providing business in the information service industry under the Korean Standard Industrial Classification;

2. Where the amount of foreign investment is at least 20 million U.S. dollars and new facilities are established engage in any of the following businesses:

(a) Resort condominium business as prescribed in Article 3 (1) 2 (b) of the Tourism Promotion Act;

(b) Any of the following tourist businesses:

(i) Tourist hotel business, floating tourist hotel business, or Korean traditional hotel business defined under Article 2 (1) 2 (a) through (c) of the Enforcement Decree of the Tourism Promotion Act;

(ii) Specialized resort business or general resort complex business defined under Article 2 (1) 3 (a) or (b) of the Enforcement Decree of the Tourism Promotion Act;

(iii) Comprehensive theme park business defined in Article 2 (1) 5 (a) of the Enforcement Decree of the Tourism Promotion Act;

(d) International conference facilities defined under subparagraph 3 of Article 2 of the International Conference Industry Promotion Act;

(e) Deleted; <Jun. 22, 2021>

(f) Youth training facilities prescribed in subparagraph 1 of Article 10 of the Youth Activity Promotion Act;

(g) Places of public performance under subparagraph 4 of Article 2 of the Public Performance Act;

(h) Sports industry promotion facilities defined in subparagraph 3 of Article 2 of the Sports Industry Promotion Act;

(i) Museums and art galleries established and operated by a corporation out of those defined in subparagraphs 1 and 2 of Article 2 of the Museum and Art Gallery Support Act;

3. Where the amount of foreign investment is at least 10 million U.S. dollars and new facilities are established to engage in any of the following businesses:

(a) Complex logistics terminal business defined under subparagraph 4 of Article 2 of the Act on the Development and Management of Logistics Facilities;

(b) Business creating and operating a joint collection and delivery complex defined under subparagraph 16 of Article 2 of the Distribution Industry Development Act;

(c) Business operating harbor facilities defined under subparagraph 5 of Article 2 of the Harbor Act, and cargo distribution business prescribed in Article 5 (8) of the Enforcement Decree of the Act on Restriction on Special Cases concerning Taxation which is run within a harbor hinterland complex defined under subparagraph 10 of Article 2 of the Harbor Act;

(d) Business operating airport facilities defined under subparagraph 7 of Article 2 of the Airport Facilities Act, and cargo distribution business prescribed in Article 5 (8) of the Enforcement Decree of the Act on Restriction on Special Cases concerning Taxation that is run within an airport zone defined under subparagraph 4 of Article 2 of the Airport Facilities Act;

(e) Business creating infrastructure (limited to revertible facilities defined under subparagraph 3 of Article 2 of the Act on Public-Private Partnerships in Infrastructure) by implementing a public-private partnership project defined under subparagraph 5 of Article 2 of that Act;

4. Where the amount of foreign investment is at least 2 million U.S. dollars and a facility that meets each of the following is established or added, among research and development facilities that meets the criteria and procedure requirements prescribed by Decree of the Ministry of Trade, Industry and Resources in terms of the amount of facility investment, personnel in exclusive charge of research, etc.:

(a) It shall be a research and development facility to engage in the business prescribed in Article 121-2 (1) 1 of the Act on Restriction on Special Cases concerning Taxation (hereafter in this subparagraph, referred to as "business");

(b) Deleted; <Jul. 28, 2016>

(c) The number of regular workers dedicated to research with at least a master's degree related to the business and at least three years’ research career shall be at least 10 persons.

(2) "Areas prescribed by Presidential Decree ... such as special research and development zones under subparagraph 1 of Article 2 of the Special Act on Promotion of Special Research and Development Zones" in Article 18 (1) 3 of the Act means any of the following areas: <Added on Oct. 5, 2010; Jul. 26, 2012; Oct. 29, 2019; Jun. 22, 2021>

1. A special research and development zone under subparagraph 1 of Article 2 of the Special Act on Promotion of Special Research and Development Zones;

2. A Technopark defined under subparagraph 1 of Article 2 of the Act on Special Cases concerning Support for Technoparks;

3. A knowledge industry center defined under subparagraph 13 of Article 2 of the Industrial Cluster Development and Factory Establishment Act;

4. A high-tech medical complex defined under subparagraph 1 of Article 2 of the Special Act on the Promotion of High-Tech Medical Complexes.

(3) "Service business ... prescribed by Presidential Decree" in the former part of Article 18 (1) 4 of the Act means the following service businesses: <Added on Oct. 5, 2010; Jun. 11, 2013; Jul. 28, 2016; Jul. 18, 2023>

1. Finance and insurance business under the Korea Standard Industrial Classification;

1-2. Company headquarters under the Korean Standard Industrial Classification (limited to cases where the headquarters functions as a local headquarters under Article 20-2 (5) 1);

2. Knowledge service business defined under Appendix 2 of the Enforcement Decree of the Industrial Development Act;

3. Deleted; <Jun. 22, 2021>

4. Cultural industries defined under subparagraph 1 of Article 2 of the Framework Act on the Promotion of Cultural Industries;

5. Tourism business defined under subparagraph 1 of Article 2 of the Tourism Promotion Act (excluding casino business classified under Article 3 (1) 5 of that Act).

(4) "Percentage prescribed by Presidential Decree" in the latter part of Article 18 (1) 4 of the Act means 50/100. <Amended on Oct. 5, 2010>

(5) "Standards prescribed by Presidential Decree" in Article 18 (2) of the Act means all of the following matters: <Amended on Oct. 5, 2010; Nov. 16, 2011; Dec. 30, 2015; Jul. 28, 2016>

1. The total amount of money invested by two or more foreign investors shall be no less than the amount of foreign investment prescribed for each type of business in the subparagraphs of paragraph (1) (in the case of subparagraph 4, it means a facility; hereinafter the same shall apply);

2. The category of business or business being engaged in shall correspond to the category of business or business referred to in any subparagraph of paragraph (1);

3. The facilities referred to in the subparagraphs of paragraph (1) shall be placed adjacent to each another.

(6) "Matters prescribed by Presidential Decree" in Article 18 (3) 6 of the Act means matters classified below: <Added on Oct. 5, 2010; Mar. 23, 2013>

1. The following matters when designating any area referred to in Article 18 (1) 1 or 3 of the Act as a foreign investment zone:

(a) The implementer and the managing institution of the development project;

(b) A land utilization plan and a plan for major infrastructure;

2. The following matters when designating any area referred to in Article 18 (1) 2 of the Act as a foreign investment zone; provided, the matters referred to in items (f) through (i) may be omitted when designating the whole or any part of a national industrial complex, general industrial complex, or urban high-tech industrial complex, the development of which has already been completed, as a foreign investment zone:

(a) Details of investment, scale of employment, and details of business of foreign- invested companies to take occupancy in the foreign investment zone;

(b) Viability of foreign investment to be induced;

(d) Plans for supporting major facilities in the foreign investment zone;

(e) Managing institution;

(f) The implementer of the development project;

(g) A land utilization plan and a plan for major infrastructure;

(h) Specified details of land, buildings, other articles or, if any, rights to be expropriated or used;

(i) Deleted; <Jul. 28, 2016>

(j) Other matters prescribed by the Foreign Investment Committee;

3. The following matters when designating any area referred to in Article 18 (1) 4 of the Act as a foreign investment zone:

(a) Matters provided for in subparagraph 2 (c) through (h);

(b) Measures to stabilize real estate prices in the foreign investment zone and adjacent areas;

(c) Measures to prevent overpopulation (limited to where the foreign investment zone is located in the over-concentration control region designated under Article 6 (1) 1 of the Seoul Metropolitan Area Readjustment Planning Act);

(d) Other matters prescribed by the Foreign Investment Committee.

(7) When formulating a development plan pursuant to the latter part of Article 18 (1) of the Act, the development plan and a designation plan referred to in Article 18 (3) of the Act (hereinafter referred to as "designation plan") shall be also formulated, by including the matters referred to in the subparagraphs of Article 18 (3) of the Act and the items of paragraph (6) 2 of this Decree into such development plan. <Added on Oct. 5, 2010>

(8) A Mayor/Do Governor who intends to formulate a designation plan shall hear opinions from the head of the relevant Si/Gun/Gu, residents, and relevant experts. <Amended on Oct. 5, 2010>

(9) The Foreign Investment Committee shall deliberate on whether to designate the relevant area as a foreign investment zone, comprehensively considering effects on the national economy, such as the feasibility of the foreign investment to be induced, balanced regional development, efficient utilization of the national territory, and employment growth based on the relevant designation plan. <Amended on Oct. 5, 2010>

(10) Where the designation is deemed unnecessary after deliberation under paragraph (9), a Mayor/Do Governor shall not designate the relevant area as a foreign investment zone. <Amended on Oct. 5, 2010>

(11) A foreign-invested company shall satisfy the standards referred to in paragraphs (1) and (5) according to the relevant designation plan within five years from the date of public notice under Article 18 (4) of the Act. <Amended on Oct. 5, 2010>

(12) "Matters prescribed by Presidential Decree" in Article 18 (4) 5 of the Act means all of the following matters: <Amended on Oct. 5, 2010>

1. Objectives for which a foreign investment zone is designated;

2. Period for development of a foreign investment zone;

3. Qualifications for enterprises to take occupancy and categories of business to be attracted (limited to where the area referred to in Article 18 (1) 1 of the Act has been designated as a foreign investment zone);

4. Methods for perusing relevant drawings and documents (limited to where the area referred to in Article 18 (1) 1 of the Act has been designated as a foreign investment zone).

(13) "Minor alterations prescribed by Presidential Decree" in the proviso of Article 18 (5) of the Act means any of the following alterations: <Amended on Oct. 5, 2010; Jun. 11, 2013; Aug. 5, 2020>

1. An alteration to the area of a foreign investment zone (limited to an alteration by up to 30/100);

2. An increase, or a decrease by up to 30/100, in the amount of foreign investment (limited to where the requirements for designation of foreign investment zones set out in Article 18 (1) of the Act are met even after such increase or decrease);

3. An alteration to the scale of employment by the relevant foreign-invested company;

4. An alteration to the main categories of business to be attracted (limited to where the area referred to in Article 18 (1) 1 of the Act has been designated as a foreign investment zone);

5. An alteration to the details of business of the relevant foreign-invested company (limited where the area referred to in Article 18 (1) 2 of the Act has been designated as a foreign investment zone);

6. Other matters determined by the Foreign Investment Committee.

(14) A Mayor/Do Governor shall have a prior consultation with the Minister of Trade, Industry and Resources with regard to modifications falling under any subparagraph of Article 13. <Amended on Oct. 5, 2010; Mar. 23, 2013; Oct. 1, 2025>

(15) Except as provided in paragraphs (1) through (14), matters necessary for the designation and development of foreign investment zones shall be determined by the Foreign Investment Committee. <Amended on Oct. 5, 2010>

[This Article Wholly Amended on Jul. 30, 2009]

Article 26(Cancellation of designation of foreign investment zones) #

(1) Where a foreign-invested company taking occupancy in an area under Article 18 (1) 2 of the Act, designated as a foreign investment zone, or an area under Article 18 (1) 3 or 4 fails to meet the standards for designation provided for in Article 25, the competent Mayor/Do Governor shall take the following measures under Article 18-2 of the Act: <Amended on Oct. 5, 2010; Mar. 23, 2013; Jul. 28, 2016; Oct. 1, 2025>

1. In cases of an area referred to in Article 18 (1) 2 of the Act:

An order requiring that the relevant foreign-invested company meet such standards within a specified period not exceeding six months (hereinafter referred to as "implementation period"). In such cases, such implementation period may be extended only on one occasion by up to the period originally specified where it is deemed that there is any unavoidable cause;

2. In cases of an area referred to in Article 18 (1) 3 or 4 of the Act:

The relevant foreign-invested company shall meet such standards within a specified period not exceeding 6 months, after consulting with the Minister of Trade, Industry and Resources; in such cases, the competent Mayor/Do Governor may extend such implementation period only on one occasion by up to the period originally specified, after consulting with the Minister of Trade, Industry and Resources where there is any unavoidable circumstance.

(2) Where a foreign-invested company or a foreign investment zone still fails to meet the standards for designation within the implementation period specified under the subparagraphs of paragraph (1), the competent Mayor/Do Governor shall request the Foreign Investment Committee to deliberate on the cancellation of designation within 30 days. <Amended on Oct. 5, 2010; Jul. 28, 2016>

(3) Except as provided in paragraphs (1) and (2), matters necessary for cancellation of designation of foreign investment zones shall be determined by the Foreign Investment Committee.

[This Article Wholly Amended on Jul. 30, 2009]

[Moved from Article 26-2; (Previous) Article 26 moved to Article 26-2 <Aug. 5, 2020>]

Article 26-2(Management of foreign investment zones) #

(1) The agency in charge of the management of foreign investment zones (hereafter referred to as the "management agency" in this Article) pursuant to Article 18-3 (1) of the Act shall manage the foreign investment zones in accordance with the designation plan. <Amended on Oct. 5, 2010; Aug. 5, 2020>

(2) The management agency, which manages foreign investment zones in accordance with paragraph (1), shall preferentially take into account the convenience of foreign investors or foreign-invested companies and shall endeavor to render support for securing various infrastructure needed for supporting the business of the foreign-invested companies in the zones, such as financial institutions, information and communications facilities, and logistics facilities, as well as support for securing medical facilities, educational facilities, and housing.

(3) Any person who intends to run a business in a foreign investment zone shall enter into an occupancy agreement (hereafter referred to as "occupancy agreement" in this Article) with the management agency; provided, a person who has ownership or a right to use a site or a building in the relevant foreign investment zone need not enter into an occupancy agreement. <Added on Aug. 5, 2020>

(4) Notwithstanding paragraph (3), Article 38 of the Industrial Cluster Development and Factory Establishment Act shall apply to contracts for occupancy of a foreign investment zone designated in an industrial complex defined in subparagraph 14 of Article 2 of that Act. <Added on Aug. 5, 2020>

(5) Where any person who has entered into an occupancy contract falls under any of the following subparagraphs, the management agency shall issue an order to rectify the relevant item within a specified period not exceeding six months, and if he or she fails to comply with such order within the relevant period, it may terminate the occupancy contract; provided, in cases of subparagraphs 3, 4 and 7, a contract for occupancy may be terminated immediately without a corrective order: <Added on Aug. 5, 2020; Oct. 1, 2025>

1. Where he or she fails to commence construction of such factory, etc. or to start business within a period prescribed by Decree of the Ministry of Trade, Industry and Resources without good cause after concluding an occupancy agreement;

2. Where he or she ceases to meet the requirements for occupancy;

3. Where he or she sells, leases, exchanges, or in any other way disposes of the leased site, building, or facility on his or her own discretion;

4. Where he or she is declared bankrupt pursuant to the Debtor Rehabilitation and Bankruptcy Act;

5. Where he or she suspends or closes his or her business continuously at least one year;

6. Where he or she fails to pay the rent for at least one year;

7. Where it is deemed impractical to achieve the purpose of the occupancy agreement due to violation of an Act or a material breach of the occupancy contract.

(6) The management agency shall hold a hearing when it intends to terminate an occupancy agreement pursuant to paragraph (5). <Added on Aug. 5, 2020>

(7) Except as provided in paragraphs (1) through (4), matters necessary for providing cash grants and other matters shall be determined by the Minister of Trade, Industry and Resources following deliberation by the Foreign Investment Committee. <Amended on Aug. 5, 2020; Oct. 1, 2025>

[This Article Wholly Amended on Jul. 30, 2009]

[Moved from Article 26; (Previous) Article 26-2 moved to Article 26 <Aug. 5, 2020>]

Article 28(Cancellation of registration of foreign-invested companies) #

(1) Pursuant to Article 21 (4) of the Act, the Minister of Trade, Industry and Resources shall examine whether any of the grounds provided in the subparagraphs of Article 21 (4) of the Act has arisen at least once a year. <Amended on Oct. 1, 2025>

(2) In order to cancel registration under Article 21 (4) of the Act, the Minister of Trade, Industry and Resources shall notify the relevant foreign-invested company of such cancellation or make a public announcement thereof, as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Oct. 1, 2025>

(3) Upon canceling the registration of a foreign-invested company under Article 21 (4) of the Act, the Minister of Trade, Industry and Resources shall inform the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, and the head of the local government which has supported the foreign-invested company under Chapter III of the Act of the details of such cancellation. <Amended on Oct. 1, 2025>

(4) "Cases meeting the criteria prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 21 (5) of the Act means any of the following cases: <Amended on Oct. 21, 2021>

1. In cases falling under Article 21 (5) 1 of the Act: When the foreign investment ratio is less than 10/100;

2. In cases falling under Article 21 (5) 2 of the Act: Any of the following cases:

(a) Where a company, the foreign investment ratio in which is less than 50/100 and the largest stockholder of which is not a foreign investor (including specially related persons under Article 6 (1)), acquires the stocks, etc. of a domestic company;

(b) Where a foreign-invested company (excluding an institutional private equity fund referred to in Article 9 (19) 1 of the Financial Investment Services and Capital Markets Act), which runs a financial business or insurance business and all or some of the business activities of which consists of acquisition of stocks, etc. of other companies pursuant to other statutes or regulations;

(c) Where a foreign-invested company acquires no more than 10/100 of the total number of the stocks, etc. issued by, or the total equity investment of, a domestic company.

[This Article Wholly Amended on Jul. 28, 2016]

Article 34-2(Composition and operation of expert committees) #

(1) An expert committee shall be established under the Foreign Investment Committee to efficiently deliberate on whether a foreign investment constitutes a national security risk.

(2) The expert committee shall be comprised of up to 20 members, including the chairperson, and the chairperson of the expert committee shall be appointed by the Minister of Trade, Industry and Resources from among public officials in general service belonging to the Senior Executive Service of the Ministry of Trade, Industry and Resources. <Amended on Oct. 1, 2025>

(3) The members of the expert committee shall be the following persons:

1. Persons appointed by the head of the relevant agency from among members in general service of the Senior Executive Service of the Ministry of Economy and Finance, the Ministry of Foreign Affairs, the Ministry of National Defense, and the Financial Services Commission;

2. Persons appointed by the head of the relevant agency from among employees of the National Intelligence Service, the Korea Trade-Investment Promotion Agency, and the Korean Security Agency of Trade and Industry under Article 25 of the Foreign Trade Act;

3. Persons commissioned by the Chairperson of the Foreign Investment Committee from among persons with extensive knowledge of and experience in national defense, industrial technology, supply chains, security, statutes, etc.;

4. Other persons commissioned by the Chairperson of the Foreign Investment Committee upon the recommendation of the head of the relevant administrative agency or public institution, from among the employees of the relevant administrative agency or public institution.

(4) Except as provided in paragraphs (1) through (3), matters necessary for the organization and operation of the expert committee shall be determined by the Chairperson of the Foreign Investment Committee, subject to resolution by the Foreign Investment Committee.

[This Article Added on Aug. 27, 2024]

Article 35(Establishment and operation of foreign investment Working Committee) #

(1) Matters entrusted to a Foreign Investment Working Committee (hereinafter referred to as "Working Committee") by the Foreign Investment Committee pursuant to Article 27 (3) of the Act are as follows: <Amended on Oct. 5, 2010; Aug. 5, 2020>

1. Matters regarding the recognition of foreign investment under Article 2 (1) 4 (d) of the Act;

2. Matters regarding the alteration of designation of a foreign investment zone under Article 18 (5) of the Act and the cancellation of designation of a foreign investment zone under Article 18-2 (1) of the Act;

3. Matters regarding the establishment and operation of the Investment Support Center under Article 21 (8);

4. Matters regarding the establishment and operation of the grievance committee under Article 21-4 (8);

5. Other matters deemed necessary following deliberation by the Committee.

(2) The Minister for Trade shall be the Chairperson of the Working Committee, and the following persons shall be the members thereof: <Amended on Mar. 23, 2013; Jun. 11, 2013; Jul. 26, 2017; Oct. 1, 2025>

1. A person designated, upon the request of the Minister of Trade, Industry and Resources, by a relevant Minister from among public officials in general service who are members of the Senior Executive Service in the Ministry of Trade, Industry and Resources or any other relevant Ministry;

2. A Vice-Mayor or Vice-Governor of a relevant City/Do (in the case of Seoul Special Metropolitan City, referring to a person designated by the Mayor, from among public officials of Grade I in the Metropolitan Government) and a person commissioned by the Chairperson from among those with abundant experience and knowledge in the field of foreign investment;

3. The head of the Investment Support Center and the foreign investment ombudsman.

(3) A secretary shall be assigned to the Working Committee to handle its administrative affairs, and the secretary shall be appointed by the Minister of Trade, Industry and Resources from among the public officials belonging to the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(4) The Committee shall establish, under the jurisdiction of the Working Committee, a Foreign Investment Inducement Subcommittee with a member of the Working Committee belonging to the Ministry of Trade, Industry and Resources as its Chairperson, for the integration and management of foreign investment inducement, the encouragement and inspection of the settlement of civil petitions concerning foreign investment, and the review of the agenda of the Working Committee concerning foreign investment inducement activities. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(5) Except as provided in this Decree, matters necessary for the operation of the Committee, the Working Committee, and the Subcommittee shall be determined by the Chairperson of the Committee following a resolution by the Committee.

[This Article Wholly Amended on Jul. 30, 2009]

Article 38(Examination and confirmation of introduced capital goods) #

(1) "Capital goods which meet the criteria prescribed by Presidential Decree, such as capital goods introduced into Korea under this Act which are subject to tax reductions or exemption" in Article 29 (1) of the Act means any of the following: <Amended on Mar. 23, 2013; Jul. 18, 2023; Oct. 1, 2025>

1. Capital goods subject to exemption from customs duties, individual consumption tax, and value-added tax pursuant to Article 121-3 (1) of the Act on Restriction on Special Cases concerning Taxation;

2. Capital goods introduced into the Republic of Korea by a foreign investor as an object of investment (including contributions; hereafter in this Article the same shall apply);

3. Capital goods introduced into the Republic of Korea by a foreign-invested company using a means of international payment with investment made by a foreign investor or a means of domestic payment obtained from the exchange of the means of international payment, among the goods designated and publicly notified by the Minister of Trade, Industry and Resources under Article 11 (1) of the Foreign Trade Act.

(2) Any person who intends to introduce into the Republic of Korea capital goods prescribed in the subparagraphs of paragraph (1) and goods, other than the capital goods introduced for the foreign investment as defined in Article 2 (1) 4 (c) and (d) of the Act (hereafter in this paragraph referred to as "capital goods, etc."), shall prepare a written specification of the goods, etc. to be introduced, which states their quantities, standard sizes, prices and manufacturers, and apply for the examination and confirmation thereof to the competent Minister before their import declarations are accepted under Article 241 (1) of the Customs Act. <Amended on Oct. 15, 2014; Aug. 5, 2020>

(3) Notwithstanding paragraph (2), if either of the following events occurs, a person may apply for the examination and confirmation of a written specification of capital goods, etc. within the time frame classified below: <Added on Oct. 15, 2014>

1. Where the person pays customs duties pursuant to Article 39 (2) of the Customs Act: Within five days from the date of receipt of the relevant notice of payment;

2. Where the capital goods, etc. are not shipped out from the bonded area: Within 15 days from the acceptance of the relevant import declarations.

[This Article Wholly Amended on Jul. 30, 2009]

Article 39-2(Prior deliberation on second-tier company’s holding stocks of joint stock corporation) #

The requirements subject to prior deliberation by the Fair Trade Commission under the latter part of Article 30 (7) of the Act shall be as follows: <Amended on Dec. 28, 2021; Jul. 18, 2023>

1. The company seeking to hold stocks of a joint stock corporation with a foreigner under Article 30 (6) of the Act shall correspond to a second-tier company (referring to a second-tier company defined in subparagraph 9 of Article 2 of the Monopoly Regulation and Fair Trade Act: hereafter in this Article the same shall apply) of a general holding company defined in Article 18 (2) 5 of the Monopoly Regulation and Fair Trade Act (hereafter in this Article referred to as "general holding company");

2. The corporation that has issued shares a second-tier company of a general holding company intends to hold with a foreigner pursuant to Article 30 (6) of the Act shall correspond to a joint stock corporation under Article 18 (1) 1 of the Monopoly Regulation and Fair Trade Act;

3. The business that a joint stock corporation under Article 30 (6) of the Act intends to carry out shall have any kind of business relevance described below with the business of a second-tier company that has control over its business contents:

(a) The business shall be of making or selling products or services with products or services of the second-tier company as its major production elements;

(b) The business shall be of providing raw materials, services, or other production elements required by the second-tier company;

(c) The business shall be of conducting research and development concerning raw materials or services produced by the second-tier company;

(d) The business shall be of making or selling products or services identical, or sharing most of the production technology, with the products or services produced by the second-tier company;

(e) The business shall otherwise have close relevance with the business contents of the second-tier company;

4. The business that a joint stock corporation under Article 30 (6) of the Act intends to carry out shall have more relevance with the business of a second-tier company than with the business of a subsidiary (referring to a subsidiary defined in subparagraph 8 of Article 2 of the Monopoly Regulation and Fair Trade Act) of a general holding company, so that the second-tier company is qualified to become a stakeholder in the joint stock corporation;

5. If a joint stock corporation becomes a third-tier company of a general holding company pursuant to Article 30 (6) of the Act, a plan to dispose of all the stocks of the domestic affiliates (referring to affiliates defined in subparagraph 12 of Article 2 of the Monopoly Regulation and Fair Trade Act) owned by such joint stock corporation shall be submitted to the Fair Trade Commission by the date preceding the date of commencement of prior deliberation thereby under the latter part of Article 30 (7) of the Act.

[This Article Added on Feb. 27, 2014]

Article 40(Delegation or entrustment of authority) #

(1) Pursuant to Article 31 of the Act, the Minister of Trade, Industry and Resources shall delegate or entrust his or her authority as classified below: <Amended on Mar. 23, 2013; Jul. 28, 2016; Oct. 1, 2025>

1. Deleted; <Jul. 28, 2016>

2. Authority prescribed in Article 28 (2) of the Act concerning investigations as to whether Article 21 (3) 2 of the Act has been violated shall be delegated to the Commissioner of the Korea Customs Service;

3. Authority prescribed in Article 28 (2) of the Act concerning investigations as to whether Article 21 (5) and (6) of the Act have been violated shall be delegated to the Commissioner of the National Tax Service;

4. Authority prescribed in Article 28 of the Act, other than those prescribed in subparagraphs 2 and 3 above, concerning the investigations into the status of implementing the terms of permission for, or details of reports by foreigners, foreign investors, and foreign-invested companies, and corrective orders therefor shall be delegated or entrusted to the competent Minister, the Commissioner of the National Tax Service, or the Commissioner of the Korea Customs Service according to their jurisdictions.

(2) Pursuant to Article 31 of the Act, the Minister of Trade, Industry and Resources shall entrust his or her authority over the following affairs to the president of the Korea Trade-Investment Promotion Agency (including the heads of the trade-centers, branches, and offices designated by the president of the Korea Trade-Investment Promotion Agency; hereinafter the same shall apply) and the head of a foreign exchange bank (including the heads of such branches of the foreign exchange bank as designated by the head of the foreign exchange bank; hereinafter the same shall apply): <Amended on Mar. 23, 2013; Jul. 28, 2016; Oct. 1, 2025>

1. Receipt of reports on, and modifications to, foreign investment and the issuance of certificates of completion of reports under Article 5 of the Act;

2. Registration, and registration of alteration, of foreign-invested companies under Article 21 (1) through (3) of the Act;

3. Verification of grounds for cancellation of registration of foreign-invested companies under Article 21 (4) of the Act;

4. Notification of details of applications for registration of alteration under Article 22 (1) of the Act;

5. Notification or public announcement of cancellation of registration under Article 28 (2) and (3) to foreign-invested companies and the Commissioner of the National Tax Service.

(3) The competent Minister shall entrust business matters concerning the examination and confirmation under Article 38 (2) to the head of a foreign exchange bank and the president of the Korea Trade-Investment Promotion Agency.

(4) Pursuant to Article 31 of the Act, a Mayor/Do Governor may delegate the management affairs of foreign investment zones under Article 18-3 (1) of the Act to the Korea Industrial Complex Corporation established under Article 45-17 of the Industrial Cluster Development and Factory Establishment Act. In such cases, the Mayor/Do Governor may determine details necessary for performing such entrusted affairs. <Amended on Oct. 5, 2010; Oct. 15, 2014; Aug. 5, 2020; Jun. 8, 2021>

(5) People who have been delegated or entrusted under paragraphs (1) and (2) shall notify, or report on, the results of performing such delegated or entrusted affairs to the Minister of Trade, Industry and Resources; persons who have been entrusted under paragraph (3) to the competent Minister; and persons who have been entrusted under paragraph (4) to the competent Mayor/Do Governor. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(6) The Minister of Trade, Industry and Resources may determine details necessary for performing business affairs delegated or entrusted under paragraphs (1) through (3). <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Jul. 30, 2009]

ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT

Article 1(Purpose) #

Article 2(Definitions of foreign investment) #

Article 3(Definition of individual who holds permanent residency in foreign country) #

Article 4(Remittance of proceeds to foreign countries) #

Article 5(Categories of businesses with restricted foreign investment) #

Article 5-2(Determination on whether foreign investment constitutes national security risk) #

Article 5-3(Request for data necessary for formulation of policy measures to stimulate foreign investment) #

Article 6(Reporting on foreign investment) #

Article 7(Permission of foreign investment) #

Article 8 #

Article 9 #

Article 10 #

Article 11 #

Article 12 #

Article 13 #

Article 14 #

Article 15 #

Article 16 #

Article 17 #

Article 18 #

Article 19(Lease of state or public property) #

Article 19-2(Sale of State or public property) #

Article 20(Criteria for support to local governments) #

Article 20-2(Uses of cash grants for foreign investment) #

Article 20-3(Applications for, and payment of, cash grants for foreign investment) #

Article 20-4(Cancellation, withdrawal, reduction, and recovery of cash grants for foreign investment) #

Article 21(Administration of foreign investment support center) #

Article 21-2(Designation and duties of project managers) #

Article 21-3(Functions of foreign investment ombudsman) #

Article 21-4(Operation of grievance committee) #

Article 22(Responsibilities of foreign investment promotion offices) #

Article 23(Foreign Investment Inducement Council) #

Article 24(Handling of civil petitions by foreign investors) #

Article 25(Designation of foreign investment zones) #

Article 26(Cancellation of designation of foreign investment zones) #

Article 26-2(Management of foreign investment zones) #

Article 27(Procedures for registration of foreign-invested companies) #

Article 28(Cancellation of registration of foreign-invested companies) #

Article 29 #

Article 30 #

Article 31 #

Article 32 #

Article 33 #

Article 34(Operation of Foreign Investment Committee) #

Article 34-2(Composition and operation of expert committees) #

Article 35(Establishment and operation of foreign investment Working Committee) #

Article 36(Reporting on data on current status of foreign investment) #

Article 37(Disposal of capital goods) #

Article 38(Examination and confirmation of introduced capital goods) #

Article 39(Confirmation of completion of investment in kind) #

Article 39-2(Prior deliberation on second-tier company’s holding stocks of joint stock corporation) #

Article 39-3(Re-examination of regulation) #

Article 40(Delegation or entrustment of authority) #

Article 41(Criteria for imposition of administrative fines) #