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FAQ on FDI in Korea 2023 (Q31~Q35)
■ FAQ on FDI in Korea 2023 (Q31~Q35)
FDI Notification&Registration
Q31 A foreign investment in the form of a long-term loan is not recorded as the amount of foreign investment on a certificate of registration of foreign-invested company. What is the reason?
A31 A foreign investment in the form of a long-term loan is recognizedas foreign investment under Article 2 (1) 4 (b) of the ForeignInvestment Promotion Act. But, because it does not constitutea foreign investment in the form of equity investment which isre . . .
작성일 2023-09-05
2023
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FAQ on FDI in Korea 2023 (Q26~Q30)
■ FAQ on FDI in Korea 2023 (Q26~Q30)
Q26 When a foreign-invested company reinvests its earned surplus in facilities, can this be deemed foreign investment?
A26 With the enactment of the amended Foreign InvestmentPromotion Act (Aug. 5, 2020), a foreign-invested company’suse of unappropriated earned surplus is recognized as foreigninvestment
Where a foreign-invested company uses its unappropriated earnedsurplus for the purposes prescribed by Presidential Decree, such as thecreation or extension of its facto . . .
작성일 2023-08-29
2023
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FAQ on FDI in Korea 2023 (Q21~Q25)
■ FAQ on FDI in Korea 2023 (Q21~Q25)
Q21 Can a foreign investor invest in kind by providing used capital goods?
A21 Yes. In accordance with the definition of “capital goods” underthe Foreign Investment Promotion Act, investment in kind ofused capital goods is not restricted. When used capital goodsare invested, their fair market value can be computed basedon the residual value of the goods reflecting depreciation andthe current market value at the time of investment.
Q22 Do capital goods only include facil . . .
작성일 2023-08-22
2023
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FAQ on FDI in Korea 2023 (Q16~Q20)
■ FAQ on FDI in Korea 2023 (Q16~Q20)
Q16 When a foreigner establishes a corporation with wage & salary income earned in Korea, can this be recognized as foreign direct investment?
A16 In principle, an investment made with domestically sourcedfunds is not recognized as foreign investment. However, if aforeigner deposits the funds into an international bank accountfor non-residents and then withdraws the funds, it may berecognized as foreign investment. Depositing funds into aninternational bank account for non-r . . .
작성일 2023-08-14
2023
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FAQ on FDI in Korea 2023 (Q11~Q15)
■ FAQ on FDI in Korea 2023 (Q11~Q15)
Q11 When a foreigner establishes a Project Financing Vehicle (PFV), can this be deemed foreign investment under the Foreign Investment Promotion Act?
A11It can be deemed foreign investment because there are noparticular restrictions. In accordance with Article 104-31of the Restriction of Special Taxation Act and Article 104-28 of its Enforcement Decree a PFV is defined as a companywhose assets shall be used for investment in facilities andinfrastructure, the development of resou . . .
작성일 2023-08-08
2023
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FAQ on FDI in Korea 2023 (Q6~Q10)
■ FAQ on FDI in Korea 2023 (Q6~Q10)
Q6When a foreigner (individual) registers an individual business in Korea, can this be recognized as foreign direct investment?
A6Yes, it can be recognized as foreign direct investment.
•The 2020 amendments by the Ministry of Trade, Industry and Energyto the definitions of “foreign investment” under the Foreign InvestmentPromotion Act (promulgated on February 4, 2020 and enforced on August5, 2020) confirmed that an individual business (sole proprietorship)established by a . . .
작성일 2023-08-01
2023
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FAQ on FDI in Korea 2023 (Q1~Q5)
■ FAQ on FDI in Korea 2023
Q1What is Foreign Direct Investment?
A1According to the Foreign Investment Promotion Act, foreign investment refers to the following: 1) Where a foreigner acquires the stocks or sharesof a domestic company or corporation (recognized where the amount ofinvestment is KRW 100 million or more and the foreign investment ratiois 10% or more);2) Where the overseas company of a foreign-investedcompany (foreign investor), etc. lends long-term loans of five years of longerto foreign-invested compan . . .
작성일 2023-07-25
2023
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OVERVIEW OF LABOR LAWS
■ Overview of Labor Laws
▶ Purpose
To regulate the terms and conditions of employment andlabor-management relations to ensure workers' humane livingconditions and equality between workers and employers.
▶ Classification
Labor laws can be largely classified into four groups asfollows: laws on individual labor relations, laws on collectivelabor relations, laws on collaborative labor relations, and otheremployment-related laws.
Laws on individual labor relations
To regulate labor rela . . .
작성일 2023-07-18
2023
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Changes in Korean Visa,Taxation and Labor
■ Changes in Korean Visa,Taxation and Labor
▶ Visa
Reason for change (Enforced date: Jul. 26, 2021)
To diversify the system of issuing a technology start-up (D-8-4) visa to attract more foreign talentsstarting a business overseas and promoting the employment of Koreans by supporting incorporation
Before
A foreigner participating in the K-Startup Grand Challenge project andrecommended by the Minister of SMEs and Start-ups is granted change totechnology start-up (D-8-4) visa without applying the score system.
. . .
작성일 2023-07-11
2023
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Korean Economic Outlook 2023-1st Half
■ Korean Economic Outlook 2023-1st Half
The Korean economy is projected to experience a 1.5% growth in 2023, driven by a downturn in exports, particularly semiconductors, before seeing a 2.3% growth in 2024 driven by an accelerating export growth resulting from a recovery in external demand.
Headline inflation is set to follow a decelerating trajectory, with an expected rise of 3.4% in 2023 and 2.4% in 2024.
Employment figures are forecast to rise by 270,000 in 2023, fuelled by an increase in services produc . . .
작성일 2023-07-03
2023
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HR AND LABOR
■ HR and labor
▶ Labor Contract
A labor contract must precisely determine key working conditions, such aswages and working hours, and is essential for the protection of the rights ofboth employee and employer
01. Stated Matters
The labor contract must contain wages, work hours, holidays, annual paidleaves, work, retirement allowance, etc. A standard labor contract is provided onthe website of the Ministry of Employment and Labor
02. Employees on Probation
Probationary employment is a type of work that is . . .
작성일 2023-06-27
2023
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INCENTIVES TAX REDUCTIONS AND EXEMPTIONS PROCEDURES
■ Incentives Tax Reductions and Exemptions Procedures
A foreign-invested company that intends to receive a tax reduction or exemption or change the details of a business must file an application to the Minister of Economy and Finance (or to the administrative authority of a free trade zone when the company is located in such a zone).※ Related law: Article 121.2.6 of the Restriction of Special Taxation ActApplications can be filed to the International Econom . . .
작성일 2023-06-19
2023
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KOREAN TAXATION
korean Taxation
■ National Tax
01. Corporate Tax
Corporate tax is imposed on the taxable income of corporations. Incorporatedassociations and foundations, as well as for-profit and non-profit corporations,are taxed like general corporations
① Taxpayer and taxable income
A domestic company (a company whose headquarters, main office or actual place of businessis in Korea) should pay corporate tax for all income generated in Kor . . .
작성일 2023-06-05
2023
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Economic Trends
■ ECONOMIC TRENDS
Here’s a look at Korea’s major economic indicators that provide an overview of the country’s recent economic developments.
▶ SUMMARY AND ASSESSMENT
■ The Korean economy remains lackluster, witnessing a considerable decline in exports
● The downturn in domestic demand has been somewhat alleviated, driven by the service industry, while financial markets demonstrate relative stability.
- With the resurgence of travel demand, service production-particularly in face-to-face businesses has observ . . .
작성일 2023-05-19
2023
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Business News
■ FOREIGN DIRECT INVESTMENT
▶ MERCK TO BUILDNEW ASIA PACIFIC BIOPROCESSING CENTER IN S. KOREA
Merck LifeScience, a global pharmaceuticalcompany headquartered in Germany, is set toinvest hundreds of billions of won to build abiopharmaceutical production base in Daejeon,some 140 kilometers south of Seoul.S. Korea’s Ministry of Trade, Industry andEnergy and Daejeon City signed a memorandum of understanding (MoU) with Merck onMay 3 to build a new Asia-Pacific bioprocessing center in Daejeon.The scale of M . . .
작성일 2023-05-18
2023
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