TAILIEUCHUNG - GUIDE TO FOREIGN DIRECT INVESTMENT IN KOREA

Acquisition of stocks or shares of Korean corporations (Article 2.(1).4.(a) of the Foreign Investment Promotion Act, FIPA) ◦A foreign national purchasing stocks or shares of a Korean corporation (including a Korean corporation in the process of incorporation. Hereinafter the same shall apply) or a company run by a Korean national, for the purpose of establishing a continuous economic relationship with and participating in the management of the said Korean corporation or company. | GUIDE TO FOREIGN DIRECT INVESTMENT IN KOREA January 2009 Invest KOREA Disclaimer The information contained herein is translated version and is provided for reference use only. Please be aware that some of laws and regulations might not be entirely accurate. As laws and regulations concerning foreign direct investment may partly change the contents of this booklet may not necessarily be fully up to date. Therefore it is advisable when using the information provided in this booklet for business purposes to contact Invest KOREA for confirmation of the relevant regulations. For more information please visit our website at Copyright 2009 Invest KOREA All rights reserved. Address 6th Floor. KOTRA Bldg. 300-9 Yeomgok-dong Seocho-gu Seoul Republic of Korea Zip code 137-749 Tel 82-2-3460-7545 Fax 82-2-3460-7946 CONTENTS I. OVERVIEW 1. 1 Foreign Direct Investment FDI .5 2 Foreign Investors and the Object of 3 FDI Amount and 2. FDI-Related Acts and 3. FDI-Allowed II. FDI PROTECTION LIBERALIZATION 1. Guarantee of Overseas 2. National 3. FDI 4. Restrictions to III. FDI NOTIFICATION REGISTRATION 1. Principles of FDI 1 Prior 2 Ex-Post-Facto 3 Report of Notification and Report of Corporate 2. FDI Procedures by 1 FDI through Subscription of New Stocks or Capital Contributions .20 2 FDI through Acquisition of Existing 3 FDI through Long-Term 4 FDI through Acquisition of Stocks etc. by Mergers 3. Civil Petitions Required for Factory Establishment and Commencement of Business .39 1 Processing of FDI-related Civil Petitions .39 2 Processing of Civil Petitions by 4. Follow-up Management of FDI 1 Modification of FDI Company 2 Disposal of Capital Goods Subject to the Exemption from Customs 3 .

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