Hello,

I’m attorney Kyusung Lee from Weon Law.

In the third quarter of this year, cumulative Foreign Direct Investment (FDI) reached its highest level since records began in 1962.

According to the Ministry of Trade, Industry and Energy, as of Q3 2024, cumulative FDI reached $25.18 billion, a 5.2% increase from the same period last year. Investments from Japan and China in advanced sectors like semiconductors and biotechnology, as well as in manufacturing centered on components and materials, saw significant growth.

While global FDI has declined for two consecutive years due to geopolitical uncertainties like Middle Eastern tensions and the ongoing U.S.-China conflict, South Korea achieved record-breaking Q3 results, solidifying its position as a stable investment destination and attracting global companies.

With this trend, special attention is needed regarding foreign investment reporting. This guide will cover how to report foreign investment and prepare for potential legal risks.

Steps and Procedures for Foreign Investment Reporting

✅Reporter

The reporter must be the foreign investor or a representative. Legally, a spouse or direct family member can file on behalf of the investor, but to ensure smooth processing, it is recommended that the investor or a designated representative submit the report.

Typically, a lawyer or expert appointed to handle the investment steps in since the foreign investor is often not in Korea at this stage. A power of attorney (POA) is required in this case, along with document legalization through apostille or consular certification.

Depending on the country, an apostille may take about one month, while consular verification may take up to two months, so it is helpful to keep these timeframes in mind.

Reporting Locations

Foreign investment reports can be filed through KOTRA, KOTRA’s overseas investment offices (KBC), main offices or branches of foreign exchange banks, or local branches of foreign banks in Korea.

Reporting through a local bank branch is the most common method. The branch that receives the investment report also handles fund transfers, various supporting documents, and foreign-invested company registration.

The investment confirmation can be issued in English, allowing investors to submit the document when reporting foreign currency outflows to customs or banks in their home country.

Documents Required for Foreign Investment Reporting

- Two copies of the Foreign Investment Report for acquiring shares or by contribution

- Nationality certificate of the foreign individual investor (passport copy if an individual)

- Corporate certification for foreign corporate investors (issued by foreign administrative bodies or chambers of commerce)

- Notarized power of attorney if submitted by a representative

Change of Report

Foreign investment reporting is a process where investors declare their plans before proceeding with investments. If there are changes to the report, it typically does not require further notification. However, a modification report may be necessary if issues arise with customs, for example.

Foreign investment reporting may appear straightforward, but going through the process often reveals its complexities.

There are aspects that can easily be overlooked, and delays may occur. For efficient handling, it is advisable to seek assistance from an expert.

With my strong command of English, backed by an honors degree in Economics from Brown University in USA, and experience handling foreign-invested companies, I, attorney Kyusung Lee, offer customized support tailored to your needs.

Please feel free to request a consultation anytime; I am here to assist you.

Thank you.

Email: kslee@weonlaw.co.kr

Phone: +82 2 6264 7604