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Researching a Korea Investment Project: Questions to Bring to an Initial Meeting

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Before a first meeting about a Korean investment project, the most useful preparation is to know which filing steps will apply to your structure, because that determines who you need in the room. According to InvestKOREA, a foreign direct investment in Korea normally involves a foreign investment notification to a foreign exchange bank or KOTRA, followed by steps such as fund remittance, court registration and business registration. The questions below follow that sequence so that each one can be answered with a name, a document or a deadline.

Question 1: What exactly is being invested, and in what form?

InvestKOREA’s procedure pages treat different investment types separately: setting up a new company, acquiring existing stock, increasing capital, and acquiring real estate each follow their own steps. State at the start which one the project is. Also say whether the investment is in cash or in kind. InvestKOREA notes that for non-cash investments the notification needs documents certifying the value of the investment object.

Question 2: Who files the foreign investment notification, and where?

InvestKOREA states that the notification is made by the foreign investor or an authorised agent to a bank (headquarters or branches of domestic banks, or domestic branches of designated foreign banks) or to Invest KOREA (KOTRA) or its Korea Trade Centers. Certificates are issued immediately. Documents listed include two copies of the notification form and a nationality certificate: a passport or equivalent for an individual, and a government-issued register or proof of existence for a corporation.

Ask the other side whether they expect to use a bank or KOTRA, and who holds the power of attorney if an agent will sign.

Question 3: What is the timing for each type of notification?

Deadlines differ by type. According to InvestKOREA’s foreign investment report page:

  • Pre-notification applies before acquiring shares or concluding contracts.
  • For existing shares, notification is due within 30 days of acquisition.
  • For share transfers, notification is due within 30 days of the contract date.
  • For mergers, notification is due within 30 days of the acquisition.
  • For changes to a registration, notification is due within 30 days of the event.

Put the intended signing date and these deadlines side by side in the meeting notes. The point is to avoid agreeing a closing timetable that leaves the notification late.

Question 4: If a new company is involved, what is the sequence and how long does it take?

InvestKOREA describes a seven-step incorporation process for a foreign-invested company and gives a total timeline of about two weeks:

  1. Foreign direct investment notification (KOTRA or a foreign exchange bank).
  2. Remittance of investment funds (a bank or customs, roughly two to three days). For companies with paid-in capital under KRW 1 billion, a bank account balance certificate can substitute for a stock subscription payment certificate.
  3. Registration of incorporation at the court registry, online through the Supreme Court registry (iros.go.kr), roughly two to three days.
  4. Any authorisation or permission required for the activity, with variable timing.
  5. Notification of incorporation and business registration at the tax office, roughly four to five days.
  6. Opening a corporate bank account.
  7. Registration of the foreign-invested company at KOTRA or a foreign exchange bank.

InvestKOREA also notes that registration must be completed within 60 days of the investment payment, that a residence visa is issued after company registration, and that additional bank accounts are restricted for 20 business days after the first account is opened. If someone in the meeting expects to relocate to Korea on a particular date, the visa sequence matters for that plan.

Question 5: Is real estate part of the plan?

InvestKOREA’s real estate page splits the procedure by who is buying. For a foreign-invested company the steps are: notify and register the foreign investment at a bank or KOTRA, conclude the contract and pay, notify the acquisition to the local si/gun/gu office within 60 days, and register the ownership transfer at the registry office within 60 days. For a non-resident foreigner, the page adds a notification to a foreign exchange bank and obtaining a real estate registration number from the local immigration office, which must be done before the ownership transfer can be registered.

The question to bring is therefore: which category does each buyer fall into (company, resident foreigner, non-resident, permanent resident)?

Question 6: Are tax incentives expected, and has the application been planned?

InvestKOREA’s procedure page lists an optional pre-eligibility confirmation from the Ministry of Economy and Finance, then the tax reduction or exemption application, a coordinated decision and official notification. It states a deadline for a new investment application of the last day of the taxable year in which the business commenced, and says the first decision window is within twenty days of submission, with a possible extension of up to twenty days. Applicants may file the foreign investment notification and the tax reduction application at the same time through authorised financial institutions. If the proposal assumes a tax benefit, ask who is responsible for checking eligibility and who files.

Keep facts and assumptions separate

A simple two-column note works: in one column, items you have confirmed from an official source with the date; in the other, items someone has told you. Typical entries for the first column are the filing body, the deadline and the document list. Typical entries for the second are expected processing speed and expected incentives.

Common mistakes and what to verify

  • Skipping the investment type. Share acquisition, new incorporation and real estate purchase follow different timetables.
  • Missing the 30-day or 60-day windows. Check which clock applies to your structure.
  • Assuming the visa comes first. InvestKOREA states a residence visa is issued after company registration.
  • Treating incentives as automatic. A tax reduction needs an application and a decision.
  • Relying on summaries. The pages are summaries; the authority handling your case may ask for further documents.

Rules change: confirm with the official bodies

This article is general information about the usual process and is not legal, tax or investment advice. Foreign investment procedures, deadlines and incentives are administered by the Ministry of Economy and Finance, KOTRA, foreign exchange banks, tax offices and courts, and can change. Confirm the current requirements with InvestKOREA or the relevant body, and consult a qualified lawyer or tax adviser for your specific project.

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