Report of foreign investment
Foreign investment to be reported- If a foreigner intends to make a foreign investment under the Foreign Investment Promotion Act, he/she must report it to the Ministry of Trade, Industry and Energy in advance (Article 5 (1) of the Foreign Investment Promotion Act).
※ Foreigners who are required to report foreign investment must include the following affiliated persons (Article 6 (1) of the Enforcement Decree of the Foreign Investment Promotion Act).
① The spouse, ascendants, and descendants of the foreigner (including ascendants and descendants of the spouse)
② A foreign corporation that owns more than 50% of the total number of shares issued or the total amount of investment, combined with the foreigner himself and persons corresponding to ① or ③, or that they effectively control
③ A foreigner and an employer who corresponds to ② or ④ (In the case of a corporation, it refers to an executive officer. In the case of an individual, it refers to a commercial employer, an employee under an employment contract, and a person who makes a living with the money or property of the individual.)
④ A foreign corporation that owns at least 50% of the total number of shares issued or the total amount of investment, combined with the corporation corresponding to the above ②, the foreigner himself, and persons corresponding to ① and ③
Foreign investment that can be reported after- Notwithstanding the provisions concerning pre-reporting, where foreign investment is made by acquiring any of the following stocks or shares (hereinafter referred to as “stock, etc.”), it may be reported within 60 days after the acquisition of such shares, etc. (Article 5 (2) of the Foreign Investment Promotion Act.
· Where existing stocks, etc. issued by a stock-listed corporation (excluded public corporations under Article 152 (3) of the Capital Markets and Financial Investment Business Act and enterprises restricted from acquiring stocks under individual Acts) under the Capital Markets and Financial Investment Business Act are acquired
· Where a foreign investor acquires stocks, etc. issued by transferring reserves, revaluation reserves, and other reserves under other Acts and subordinate statutes into the capital of the relevant foreign-invested company
· Where the relevant foreign investor acquires shares, etc. of a corporation in existence or newly established after company division by shares, etc. owned at the time of the merger, comprehensive exchange, transfer, or division of shares with another company
· Where a foreigner acquires stocks, etc. of a foreign-invested company registered pursuant to Article 21 of the Foreign Investment Promotion Act by purchasing, inheriting, bequest, or donation from a foreign investor
· Where a foreign investor acquires stocks, etc. by investing in negligence arising from stocks, etc. acquired under the Act
· Where foreigners convert or exchange convertible bonds, exchange bonds, stock deposit certificates, or other certificates similar thereto that can be converted, taken over, or exchanged into stocks, etc.
Report on changes- A foreigner may report to the Ministry of Trade, Industry and Energy reflecting the changes in any of the following matters, such as the ratio of foreign investment (referring to the ratio of stocks, etc. owned by foreign investors to stocks, etc. of foreign-invested companies) (Article 5 (3) of the Foreign Investment Promotion Act and Article 2 (3) of the Enforcement Rules of the Foreign Investment Promotion Act).
· Foreign investment ratio, foreign investment amount
· Name and nationality of a foreign investor
· Name and address of a foreign-invested company
· Business run or business to be run by a foreign-invested company
· Transferor of shares or stakes (limited in acquiring existing stocks, etc. under Item A (ⅱ) of Subparagraph 4 of Article 2 (1) of the Foreign Investment Promotion Act)
· Loan provider, loan amount, and loan conditions (only in cases of loans under Item B of Subparagraph 4 of Article 2 (1) of the Foreign Investment Promotion Act)
· Contribution amount and conditions (limited to contributions to nonprofit corporations under Items C and E of Subparagraph 4 of Article 2 (1) of the Foreign Investment Promotion Act)
· Any other modification in the foreign investment report, application for permission, or application for registration of a foreign-invested company