FDI Procedure Korea — Foreign Direct Investment Registration Guide 2026
Foreign Direct Investment (FDI) in South Korea is regulated by the Foreign Investment Promotion Act (외국인투자촉진법). Proper FDI registration unlocks tax incentives and enables visa eligibility for investors.
What Qualifies as FDI in Korea?
Under Korean law, FDI includes:
- Acquisition of Korean company shares (minimum 10% stake, or less than 10% with board representation)
- Loans to affiliated Korean companies (long-term)
- Contributions to non-profit organizations by foreign investors
Minimum FDI Threshold
| Purpose | Amount |
|---|---|
| D-8 visa qualification | USD 100,000 |
| FDI incentive zones | Varies by zone |
| Standard FDI notification | USD 100,000 |
FDI Registration Process
Step 1: FDI Notification
File with a designated foreign exchange bank (e.g., KEB Hana Bank, Woori Bank):
- Foreign investment notification form (외국인투자신고서)
- Proof of investor identity (passport, corporate registry)
- Investment agreement or subscription contract
Step 2: Capital Remittance
Transfer investment funds from overseas to the Korean company's account. Keep bank transfer records as evidence.
Step 3: Capital Verification
Obtain a capital verification certificate (납입자본금 확인서) from a Korean CPA/auditor.
Step 4: FDI Certificate
The foreign exchange bank issues an FDI certificate (외국인투자기업등록증).
Step 5: Company Registration
Proceed with corporate registration using the FDI certificate.
FDI Incentives
Tax Incentives
Qualifying FDI may receive:
- Corporate income tax reduction: 0–100% for 3–7 years
- Local income tax exemption: Corresponding to the CIT exemption
- Employment support subsidies
Qualifying Industries
- High-technology industries
- Manufacturing in Inland Investment Zones
- Service industries in Free Economic Zones (FEZ)
- Companies creating substantial employment
Free Economic Zones (FEZ)
Korea has 8 FEZs offering additional incentives:
- Incheon FEZ (Songdo, Cheongna, YeongJong)
- Busan-Jinhae FEZ
- Gwangyang Bay Area FEZ
- Saemangeum-Gunsan FEZ
Benefits in FEZs include:
- Land lease at preferential rates
- Streamlined administrative procedures
- English-language administrative services
- Additional tax incentives
Compliance Requirements
After investment:
- Annual FDI status reporting to Korea Trade-Investment Promotion Agency (KOTRA)
- Financial statement filing (if Korean corporation)
- Foreign exchange transaction reporting
Important: FDI vs Portfolio Investment
FDI is distinct from portfolio investment (buying publicly traded stocks):
- FDI: 10%+ stake, or management participation
- Portfolio investment: Under 10% without management rights
- Only FDI qualifies for visa eligibility and tax incentives
비전행정사사무소 | FDI 절차 전문 상담: 02-363-2251