Revocation of permission and cancelation of registration
Reasons for revocation of permission and cancelation of registration- The president of KOTRA and the head of a Foreign Exchange Bank (hereinafter referred to as the “head of an entrusted institution”) may revoke the permission or cancel the registration if foreign investors or foreign-invested companies fall under any of the following. However, in the case of 2 or 3, the permission must be revoked or the registration shall be canceled (Article 21 (4) of the Foreign Investment Promotion Act and Subparagraph 3 of Article 40 (2) of the Enforcement Decree of the Foreign Investment Promotion Act).
1. Where a foreign-invested company has reported the closure of business in accordance with Article 8 (8) of the Value-Added Tax Act
2. Where a foreign investor has transferred all of his/her stocks, etc. to a Korean citizen or a Korean corporation, or all of his/her shares, etc. are lost because of the capital reduction of the relevant foreign-invested company
3. Where a foreign-invested company is registered by pretending to be payment of the investment object
Confirmation and disclosure of reasons for the cancelation of registration- The head of the delegated agency must check whether the above reasons have occurred at least once a year (Articles 28 (1) and Subparagraph 3 of Article 40 (2) of the Enforcement Decree of the Foreign Investment Promotion Act).
- When the head of the delegated agency intends to terminate the registration, he/she shall notify (including delivery using the information and communications network) the relevant foreign-invested company with a certificate of registration cancelation (including a certificate in electronic form) (Article 28 (2) of the Enforcement Decree of the Foreign Investment Promotion Act and Article 17-2 (1) of the Enforcement Rules of the Foreign Investment Promotion Act).
- A foreign-invested company that received the notice above shall return a certificate of registration of a foreign-invested company to the head of the delegated agency. The Ministry of Trade, Industry and Energy shall disclose the cancelation of registration of the foreign-invested company if the foreign-invested company did not return the certificate of registration of the foreign-invested company within 30 days of notification (Article 17-2 (2) and (3) of the Enforcement Rules of the Foreign Investment Promotion Act).