You are here:
AsianLII >>
Databases >>
Laws of the Republic of Korea >>
ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT
Database Search
| Name Search
| Noteup
| Help
ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT
ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT
INTRODUCTION
Details of Enactment and Amendment
- Enactment: This Decree was enacted on November 14, 1998, following the enactment of the Foreign Investment Promotion Act, as the
Presidential Decree No. 15931, in order to prescribe the matters mandated by the same Act and the matters necessary for the enforcement
thereof.
- Amendment: This Decree has taken its present form after going through thirteen amendments, including the latest amendment made on
March 8, 2005, since its enactment.
Main Contents
- When a foreign capital invested company purchases a State-owned property, the purchase price may be paid in installments for up
to twenty years or the time period for its payment may be extended for up to one year, and for the purchase of a publicly owned property,
an installment purchase or an extension of payment period may be allowed pursuant to the municipal ordinances.
- When a local government requests financial support for the expenses of its foreign investment inducement projects, the State provides
the financial support in consideration of the potential economic effects that will be brought about by foreign investment, such as
creation of jobs and transfer of technologies, and the targeted region and in accordance with the criteria determined by the Foreign
Investment Commission.
- The Decree prescribes the scope of civil petition services, from among the civil petition services related with foreign investment,
that the public officials or officers/employees of foreign investment related agencies dispatched to the Korea Investment Service
Center may handle directly.
- Conditions of the designation of a foreign investment zone are provided as follows:
- Factory facilities are being newly installed in order to conduct a manufacturing business, an industrial support service business,
or a business accompanying advanced technologies, in which the amount of foreign investment is not less than thirty million US Dollars;
and that a part or the whole of a national industrial complex or local industrial complex the development of which is already completed
is being designated as a foreign investment zone, in which the amount of foreign investment is not less than thirty million US Dollars
and the scale of new regular employment is not less than three hundred persons;
- Tourist hotel facilities, floating tourist hotels, universal recreation facilities or international conference facilities are being
newly installed, in which the amount of foreign investment is not less than twenty million US Dollars;
- Facilities for carrying on a combined cargo terminal business, creating and operating a joint collection and delivery complex, or
operating harbor facilities, airports or physical distribution business are being newly installed, in which the amount of foreign
investment is not less than ten million US Dollars;
- Facilities for the business of creating infrastructure facilities are being newly installed; or
- Research facilities are being newly established or added to conduct research and development activities for an industrial support
service business or a business accompanying advanced technologies in which the amount of foreign investment is not less than five
million US Dollars and the scale of the regular employment of the manpower having a degree of master or higher degree concerning
such business and a three-year or more research career, exclusively charged for research, is not less than 10 persons.
- A foreigner who intends to receive a cash grant shall submit a written application for such a cash grant with the attachment of
a written investment plan comprising the total investment amount and contents thereof, the size of employment, the effect of technology
diffusion, the extent of contribution to the local economy, etc.
- A foreigner who receives a cash grant within a certain percentage of his amount of investment shall use it for the following:
- Purchase cost or rental fee of the land for establishing a factory facility or research facility;
- Building cost of a factory facility or research facility;
- Purchase cost of capital goods, research equipment and materials to be used for the purpose of a project or research at a factory
facility or research facility;
- Installation cost of infrastructure, such as electricity and communications facilities, necessary for installing a new factory facility
or research facility; and
- Grants for employment or educational training.
- The Decree prescribes matters relating to the composition and operation of the Foreign Investment Working Committee which is established
in order to examine/coordinate the items to be deliberated by the Foreign Investment Commission.
- The president of the Korea Trade-Investment Promotion Agency may designate a project manager by foreign investor or foreign-capital
invested company in order to efficiently support the investment affairs of such a foreign investor or foreign-capital invested company.
- At the request of a foreign investor or foreign-capital invested company, a project manager shall perform the collection and offer
of data or information and the mediation of interview, the vicarious execution of civil affairs, the assistance to settlement of
living, etc.
ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT
Amended by Presidential Decree No. 18736, Mar. 8, 2005
CHAPTER I GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Foreign Investment Promotion Act and matters necessary for the
enforcement thereof.
Article 2 (Definitions of Foreign Investment, etc.)
(1)The term international economic cooperative organization as prescribed by the Presidential Decree in Article 2 (1) 1 of the Foreign
Investment Promotion Act (hereinafter referred to as the Act ) shall mean any of the following subparagraphs:
1.An agency which vicariously fulfills the foreign economic cooperation business of the government of a foreign country;
2.An international organization which deals with business matters concerning development finance, such as the International Bank for
Reconstruction and Development, the International Financial Corporation, and the Asia Development Bank; and
3.An international organization which either directly or vicariously deals with business matters concerning external investment.
(2)The term foreign investment as prescribed in Article 2 (1) 4 (a) of the Act shall mean an investment which amounts (referring
to the amount of acquisition in case where it acquires stocks, etc., and to the investment amount per capita in case where two foreigners
or more jointly invest) to 50 million won or more and falls under any of the following subparagraphs: <Amended by Presidential
Decree No. 17135, Feb. 24, 2001; Presidential Decree No. 18222, Jan. 13, 2004>
1.A foreigner s owning not less than 10 percent of the total number of the stocks with voting rights issued by, or of the total equity
investment of, a Korean corporation (including Korean corporations in the process of being established; hereinafter the same shall
apply) or a company run by a Korean citizen; and
2.A foreigner s owning stocks or shares of a Korean corporation or a company run by a Korean citizen, and concluding a contract falling
under any of the following items with the relevant corporation or company:
(a) A contract capable of dispatching or electing officers (referring to directors, representative directors, general partners, auditors
or persons corresponding thereto holding a right to participate in an important decision making for business management; hereinafter
the same shall apply);
(b) A contract to deliver or purchase the raw materials or products for not less than one year; and
(c) A contract for furnishing or introducing the technology or for the joint research and development.
(3)The term company in a relationship of capital investment as prescribed by the Presidential Decree in Article 2 (1) 4 (b) of the
Act shall mean a company which falls under any of the following subparagraphs: <Amended by Presidential Decree No. 18222, Jan.
13, 2004>
1.A company which holds not less than 50 percent of the total number of the stocks issued by, or of the total equity investment of,
its overseas holding company; and
2.A foreign-capital invested company of which not less than 50 percent of the total number of the issued stocks or of the total equity
investment is held by its overseas holding company, and which falls under any of the following:
(a) A company which holds not less than 10 percent of the total number of the stocks issued by, or of the total equity investment
of, its overseas holding company; and
(b) A company of which not less than 50 percent of the total number of the issued stocks or of the total equity investment is held
by its overseas holding company or a company under the provisions of subparagraph 1.
(4) The term intellectual property rights as prescribed by the Presidential Decree in Article 2 (1) 7 (d) of the Act shall mean
the right to be utilized in the industrial activities from among the copyrights under the Copyright Act and the layout-design right
under subparagraph 5 of Article 2 of the Act on the Layout-Designs of Semiconductor Integrated Circuits. <Newly Inserted by Presidential
Decree No. 17135, Feb. 24, 2001>
(5) The term facilities prescribed by the Presidential Decree in Article 2 (1) 6-2 of the Act shall mean a facility falling under
any of the following subparagraphs: <Newly Inserted by Presidential Decree No. 18222, Jan. 13, 2004>
1.A foreigners school under Article 60-2 of the Elementary and Secondary Education Act;
2.A general hospital, hospital, dental hospital, herb hospital, sanatorium, medical clinic, dental clinic, herb clinic and midwifery
clinic under Article 3 (2) of the Medical Service Act;
3.A pharmacy under Article 2 (3) of the Pharmaceutical Affairs Act;
4.A housing under the provisions of subparagraph 1 of Article 2 of the Housing Act; and
5.Other facilities, such as a fosterage facility for start-up business for foreign investors, determined and publicly announced by
the Minister of Commerce, Industry and Energy after undergoing a deliberation of the foreign investment commission (hereinafter referred
to as the Commission ) under Article 27 of the Act.
(6) The term stocks as prescribed by the Presidential Decree in Article 2 (1) 7 (g) of the Act shall mean the stocks falling under
any of the following subparagraphs: <Newly Inserted by Presidential Decree No. 17135, Feb. 24, 2001; Presidential Decree No. 18222,
Jan. 13, 2004>
1.Stocks of foreign corporations listed or registered in the foreign securities markets; and
2.Stocks owned by foreigners under the Act or the Foreign Exchange Transactions Act.
(7)The term other domestic payment means as prescribed by the Presidential Decree in Article 2 (1) 7 (i) of the Act shall mean money
coming from the sale of stocks or shares (hereinafter referred to as stocks ) and real estate of a Korean corporation or a company
run by a Korean citizen, held by a foreigner in accordance with the Act and the Foreign Exchange Transactions Act. <Amended by
Presidential Decree No. 16330, May 24, 1999>
Article 3 (Definition of Individual Who Holds Permanent Residentship of Foreign Country)
The term individual who holds permanent residentship of a foreign country in Article 2 (2) of the Act shall mean a person who has
acquired permanent residentship, or a stay permit which can be substituted for permanent residentship, of the country in which he
resides.
Article 4 (Remittance of Proceeds to Foreign Countries)
(1)Where a foreign investor, a person who borrows a loan as prescribed in Article 2 (1) 4 (b) of the Act, or a person who introduces
technology by means of a contract for the introduction of technology as prescribed in subparagraph 9 of the said paragraph, intends
to remit funds to a foreign country in accordance with the provisions of Article 3 (1) of the Act, he shall obtain confirmation of
the remittance from the head of a foreign exchange bank as prescribed in the Foreign Exchange Transactions Act (hereinafter referred
to as the head of a foreign exchange bank ). <Amended by Presidential Decree No. 16330, May 24, 1999>
(2)Where the head of a foreign exchange bank intends to conduct a confirmation as prescribed in paragraph (1), he shall verify the
legitimacy of the remittance to a foreign country under consideration.
Article 5 (Categories of Business in Which Foreign Investment is Restricted)
(1)The categories of business in which foreign investment is restricted, and the contents of the restriction, as prescribed in Article
4 (3) of the Act, shall be the following matters, publicly announced by the Minister of Commerce, Industry and Energy after consultation
with the competent Minister, in view of the scope of the reserved contents concerning domestic direct investment by a non-resident
in the field of the direct investment of Annex No. 1 (Reservations to the Code of Liberalization of Capital Movements) to the agreed
invitation to join the Convention on the Organization for Economic Cooperation and Development for the Republic of Korea and of the
reserved contents provided in the Annex to the Convention on the Organization for Economic Cooperation and Development concerning
bilateral or multilateral investments: <Amended by Presidential Decree No. 16330, May 24, 1999; Presidential Decree No. 17135,
Feb. 24, 2001; Presidential Decree No. 17474, Dec. 31, 2001>
1.A category of business (hereinafter referred to as the restricted category of business ) in which foreign investment is not permitted
or is only partially permitted;
2.The total ratio of investment permissible to foreigners (hereinafter referred to as the ratio of investment permissible to foreigners
) by the category of business in which foreign investment is only partially permitted under subparagraph 1;
3.Qualifications of foreign investors and the parties concerned with respect to a domestic joint investment; and
4.Other standards for permission such as the time of permission for foreign investment.
(2) Notwithstanding paragraph (1), a foreigner may make an investment in a company of which the ratio of the turnover of a restricted
category of business is not more than 1/100 of the total turnover, beyond the limit as set in paragraph (1). <Newly Inserted by
Presidential Decree No. 17474, Dec. 31, 2001>
(3) Where the ratio of the turnover of a restricted category of business of a company falling under paragraph (2) has come to exceed
1/100 of the total turnover of the company after a foreigner acquired stocks of the company, the stocks acquired in excess of the
ratio of investment permissible to foreigners shall be transferred to a Korean citizen or a Korean corporation within 6 months from
the date fixed for the settlement of accounts of the business year when such ratio is exceeded: Provided, That if there exist any
inevitable reasons, the period of transfer may be extended within the maximum limit of 6 months with approval of the Minister of
Commerce, Industry and Energy. <Newly Inserted by Presidential Decree No. 17474, Dec. 31, 2001>
(4) A foreigner shall be prohibited from making an investment in any company running concurrently both a category of business in which
foreign investment is not permitted and a category of business in which foreign investment is only partially permitted under paragraph
(1) 1, and where intending to make an investment in any company running not less than two categories of business in which foreign
investment is only partially permitted under paragraph (1) 1, he shall be prohibited from making an investment in the company in
excess of the ratio of foreign investment in the category of business in which the ratio of investment permissible to foreigners
is lowest. <Newly Inserted by Presidential Decree No. 17474, Dec. 31, 2001>
(5)The head of the relevant administrative agency shall, where there exist any alterations in or any new additions to the contents
concerning the restrictions on foreign investments which have been publicly notified by the Minister of Commerce, Industry and Energy
in the preceding year under Article 4 (4) of the Act, prepare them as of the base date of January 1 and notify it to the Minister
of Commerce, Industry and Energy not later than the end of January, and the Minister of Commerce, Industry and Energy shall integrate
them and make a public notice of them not later than the last day of February each year. <Amended by Presidential Decree No. 17135,
Feb. 24, 2001>
CHAPTER II PROCEDURESFORFOREIGN INVESTMENT
Article 6 (Matters to be Reported concerning Alterations in Contents of Foreign Investment)
The term matters as prescribed by the Presidential Decree in the latter parts of Articles 5 (1), 6 (1) and (3), and 8 (1) of the
Act shall mean the following matters: <Amended by Presidential Decree No. 16330, May 24, 1999; Presidential Decree No. 17135,
Feb. 24, 2001>
1.The trade name or title and nationality of the foreign investor concerned;
2.The amount of foreign investment, the ratio of foreign investment (the ratio of the stocks held by the foreign investor concerned
to the total stocks of a foreign-capital invested company; hereinafter the same shall apply), and the method of investment;
3.The type of business desired to be operated;
3-2.The transferor of stocks;
3-3.The offerer, amount, and conditions of loans; and
4.Such other important matters concerning the contents of the report and permission as prescribed by the Ordinance of the Ministry
of Commerce, Industry and Energy.
Article 7 (Procedures for Foreign Acquisition of Existing Stocks)
(1)The term persons of special relationship as prescribed by the Presidential Decree in the former part of Article 6 (1) of the
Act shall mean persons falling under any of the following subparagraphs:
1.The spouse and the lineal ascendant and descendant of the foreigner concerned (including the lineal ascendant and descendant of
the spouse of the foreigner concerned);
2.A foreign corporation, not less than fifty percent of the total number of the stocks issued by which, or not less than fifty percent
of the total equity investment of which, is held together by the foreigner concerned and the persons in such relationship as prescribed
in subparagraph 1 or 3, or a foreign corporation which is virtually being governed by the foreigner concerned and the said persons;
3.The employees of the foreigner concerned and persons as prescribed in subparagraph 2 or 4 (referring to officers in case of a corporation,
to trade employees or other employed persons through an employment contract, in case of an individual, or to persons who maintain
their livelihood by means of the money or property of the said individual); and
4.A foreign corporation, not less than fifty percent of the total number of the stocks issued by which, or not less than fifty percent
of the total equity investment of which, is held together by such a corporation as prescribed in subparagraph 2, the foreigner concerned,
and such persons as prescribed in subparagraphs 1 and 3.
(2)The term defense industry company as prescribed by the Presidential Decree in Article 6 (3) of the Act shall mean a defense industry
company as prescribed in subparagraph 3 of Article 2 of the Act on Special Measures for Defense Industry.
(3)The period of decision on and issuance of the permission as prescribed in Article 6 (4) of the Act shall be fifteen days from the
day on which the application for the permission is filed: Provided, That where there exists a compelling reason, the period may be
extended one time for a maximum of fifteen days.
(4)Where supplement or correction is deemed necessary with respect to the application for the permission for foreign investment as
prescribed in Article 6 (3) of the Act, the Minister of Commerce, Industry and Energy may designate the period for the supplement
or correction and request the person concerned to perform the supplement or correction within the designated period. In this case,
the period consumed for the complement or correction shall not be included in the period of decision on and issuance of the permission
as prescribed in paragraph (3). <Amended by Presidential Decree No. 16330, May 24, 1999>
(5)In accordance with the provisions of Article 6 (7) of the Act, the Minister of Commerce, Industry and Energy shall order the person
who acquired existing stocks in violation of the provisions of Article 6 (3) and (6) of the Act to convey the existing stocks to
a Korean citizen or a Korean corporation within one month from the day on which the violation is discovered. In this case, the period
of conveyance shall be determined by the Minister of Commerce, Industry and Energy within the maximum scope of six months, but where
there exists a compelling reason, the period of conveyance may be extended within the maximum scope of six months. <Amended by
Presidential Decree No. 16330, May 24, 1999>
(6)through (8) Deleted. <by Presidential Decree No. 17474, Dec. 31, 2001>
Article 8 (Consultation concerning Permission of Acquisition of Existing Stocks)
(1)Where a foreigner has made an application for permission for the acquisition of the existing stocks of a defense industry company
in accordance with the provisions of Article 6 (3) of the Act, the Minister of Commerce, Industry and Energy shall, in accordance
with the provisions of Article 6 (5) of the Act, request consultation with the Minister of National Defense, and the Minister of
National Defense receiving such a request for consultation shall submit his opinion on the matter to the Minister of Commerce, Industry
and Energy within ten days from the day on which he received the request. <Amended by Presidential Decree No. 16330, May 24, 1999>
(2)Where the Minister of National Defense judges that the defense industry products produced by a defense industry company for which
permission for the acquisition of existing stocks has been applied are replaceable by the products of another domestic company or
that the granting of the permission will not cause any important effect on the security of this nation, he shall agree with the granting
of the permission. <Amended by Presidential Decree No. 16330, May 24, 1999>
(3)In submitting his opinion in accordance with the provisions of paragraph (1), the Minister of National Defense may request the
Minister of Commerce, Industry and Energy to grant permission with the following conditions: <Amended by Presidential Decree No.
16330, May 24, 1999>
1.Necessary conditions for the continuous production of the defense industry products concerned and for the maintenance of the security
of this nation; and
2.The condition of dividing and selling to a Korean citizen or a Korean corporation the defense industry facilities concerned.
(4)Where permission had been granted with the conditions as prescribed in paragraph (3) 2, a foreigner who acquired the existing stocks
before the sale of the defense industry facilities is completed may not participate in the management of the defense industry company
concerned.
CHAPTER III SUPPORTMEASURESFOR FOREIGN INVESTMENT
Articles 9 through 18 Deleted.
<by Presidential Decree No. 16330, May 24, 1999>
Article 19 (Rental of State or Public Property)
(1)The rental fee for the land, etc. as prescribed in Article 13 (4) of the Act shall be the amount derived from the multiplication
of the value of the land, etc. under consideration by the rate of not less than 10/1000: Provided, That the rental fee rates for
land, etc. in the area of the Article 18 (1) 1 of the Act designated as foreign investment zone pursuant to the provisions of fore
part of the same paragraph shall be as follows: <Amended by Presidential Decree No. 16720, Feb. 23, 2000; Presidential Decree
No. 18039, Jun. 30, 2003; Presidential Decree No. 18662, Dec. 31, 2004>
1.If the land, etc. concerned is state property, the rates determined by the Minister of Commerce, Industry and Energy after consultation
with the Minister of Finance and Economy; and
2.If the land, etc. concerned is public property, the rates determined by the Minister of Commerce, Industry and Energy after consultation
with the head of a local government that is the owner of the land, etc. in question.
(2)The postponement of the payment period for the purchase price of the land, etc. or the payment in installments as prescribed in
Article 13 (5) of the Act shall be done in accordance with the following methods. In this case, the applicable interest rate shall
not exceed four percent annually: <Amended by Presidential Decree No. 17474, Dec. 31, 2001>
1.In case of land, etc. owned by the State: Either the payment period may be extended within the upper limit of one year or the payment
in installments within the maximum period of twenty years may be allowed; and
2.In case of land, etc. owned by a local government: Either the payment period may be extended or the payment in installments may
be allowed under its Municipal Ordinance.
(3)The term foreign-capital invested company operating businesses as prescribed by the Presidential Decree in the main sentence
of Article 13 (6) of the Act shall mean any company which installs a new factory facility [referring to a workplace in case of any
business other than manufacturing industry on the Korean Standard Industrial Classification (hereinafter referred to as the Korean
Standard Industrial Classification ) prepared and publicly announced by the Commissioner of the Korea National Statistical Office
under Article 17 of the Statistics Act; hereinafter the same shall apply] to operate business falling under any of the following
subparagraphs: <Amended by Presidential Decree No. 16330, May 24, 1999; Presidential Decree No. 16583, Oct. 27, 1999; Presidential
Decree No. 17474, Dec. 31, 2001; Presidential Decree No. 17851, Dec. 30, 2002; Presidential Decree No. 18222, Jan. 13, 2004; Presidential
Decree No. 18662, Dec. 31, 2004>
1.A business which makes a considerable contribution to the economy of this nation such as the acceleration of employment and falls
under any of the following items:
(a) A business run by a foreign-capital invested company within a foreign investment zone designated pursuant to the fore part of
Article 18 (1) of the Act;
(b) A business which has been subjected to the reduction of or exemption from taxes in accordance with the provisions of Article 121-2
(1) of the Restriction of Special Taxation Act, and in which a foreign investment of not less than one million U. S. dollars has
been made; and
(c) A business in which a foreign investment of not less than five million U.S. dollars has been made, and which intends to operate
a manufacturing industry (referring to a manufacturing industry according to the Korean Standard Industrial Classification; hereinafter
the same shall apply); and
2.A business which makes a considerable contribution to the expansion of infrastructure, the readjustment of industrial structure,
or the financial independence of a local government as determined by the Minister of Commerce, Industry and Energy via a deliberation
of the Commission.
(4)The rate of the reduction of or exemption from the rental fee of the land owned by the State as prescribed in Article 13 (6) of
the Act shall be determined by the management agency of the state property under consideration (including the person who has been
delegated or entrusted in accordance with the provisions of Article 21 of the State Properties Act or Article 32 (3) of the same
Act; hereinafter the same shall apply) within the scope of the following: <Amended by Presidential Decree No. 18222, Jan. 13,
2004; Presidential Decree No. 18662, Dec. 31, 2004>
1.For land falling under the provisions of Article 13 (6) 1 of the Act: The rate of the reduction or exemption as prescribed in the
following items:
(a) With respect to a business which falls under the provisions of paragraph (3) 1 (a) or (b), 100/100 of the rental fee of the land
concerned; and
(b) With respect to a business which falls under the provisions of paragraph (3) 1 (c) or of subparagraph 2 of the said paragraph,
75/100 of the rental fee of the land concerned; and
2.For land falling under the provisions of Article 13 (6) 3 and 4 of the Act: 50/100 of the rental fee of the land concerned.
(5)The rate of reduction of or exemption from the rental fee of the State-owned land under Article 13 (7) of the Act shall be determined
by the management agency of the relevant State-owned property within the scope of 100/100. <Newly Inserted by Presidential Decree
No. 18222, Jan. 13, 2004>
(6)A foreign-capital invested company or an operator of the facilities to improve foreign investment environment (hereafter in this
Article referred to as the foreign-capital invested company, etc. ) that desires to obtain a benefit of reduction of or exemption
from the rental fee of the State-owned land in accordance with the provisions of Article 13 (6) or (7) of the Act shall make an application
for reduction or exemption to the management agency of the State-owned property concerned. <Amended by Presidential Decree No.
18222, Jan. 13, 2004>
(7)A foreign-capital invested company, etc. which desires to obtain a benefit of reduction of or exemption from the rental fee of
the land owned by a local government in accordance with the provisions of Article 13 (8) of the Act shall make an application for
reduction or exemption to the head of the local government concerned. <Amended by Presidential Decree No. 18222, Jan. 13, 2004>
(8)Concrete matters such as the types of business to be subjected to a reduction of or exemption from the rental fee of the land owned
by a local government and the rate of reduction of or exemption from the rental fee as prescribed in Article 13 (8) of the Act shall
be determined by the Municipal Ordinance of the local government concerned taking into account the economic effects which will be
brought about by the foreign investment concerned, such as the creation of employment, the transfer of technology, and the effect
on the financial independence of the local government concerned. <Amended by Presidential Decree No. 18222, Jan. 13, 2004>
(9)Except for such cases as provided for in the Act or this Decree, the selling or rental of the land owned by the State or a local
government as prescribed in Article 13 of the Act shall be governed by the State Properties Act and the Local Finance Act.
Article 20 (Criteria for Support to Local Governments)
(1)The criteria for financial support to be given by the State to a local government in accordance with the provisions of Article
14 (1) of the Act shall be determined by the Commission after the comprehensive deliberation of such potential economic effects that
will be brought about by the foreign investment concerned, such as the creation of employment and the transfer of technology, and
the region to be moved into.
(2)The head of a central administrative agency who has received a request for financial support by a local government shall render
the support thus requested in accordance with the criteria for the financial support as determined by the Commission.
(3)The term public agency as prescribed by the Presidential Decree in the provisions of Article 14 (1) of the Act shall mean an
implementer of an industrial complex development project as prescribed in Article 16 (1) of the Industrial Sites and Development
Act. <Amended by Presidential Decree No. 18222, Jan. 13, 2004>
(4)The term employment subsidy as prescribed by the Presidential Decree in the provisions of Article 14 (4) of the Act shall mean
the employment subsidy which is paid according to the creation scale of new employment of a foreign-capital invested company.
Article 20-2 (Use, etc. of Cash Grants to Foreign Investment)
(1)The term use as prescribed by the Presidential Decree in the part except for the subparagraphs of Article 14-2 (1) of the Act
shall mean a use falling under any of the following subparagraphs:
1.Purchase cost or rental fee of the land for establishing a factory facility or research facility;
2.Building cost of a factory facility or research facility;
3.Purchase cost of capital goods, research equipment and materials to be used for the purpose of a project or research at a factory
facility or research facility;
4.Installation cost of infrastructure, such as electricity and communications facilities necessary for installing a factory facility
or research facility; and
5.Grants for employment or educational training.
(2)The term parts and materials as prescribed by the Presidential Decree in Article 14-2 (1) 2 of the Act shall mean the parts and
materials (limited to those belonging to the business types under the provisions of Table 4) falling under any of the following subparagraphs,
which are determined by the Ordinance of the Ministry of Commerce, Industry and Energy:
1.Those contributing a lot to high value adding to the final products;
2.Those which are parts or materials incidental to ultramodern technology or high core technology having a big effect on technology
diffusion or creation of value adding; and
3.Those which become an industrial basis or have a large connective effect among the industries.
[This Article Newly Inserted by Presidential Decree No. 18222, Jan. 13, 2004]
Article 20-3 (Application for and Payment of Cash Grant to Foreign Investment)
(1)A foreigner who intends to receive a cash grant from the State as prescribed in Article 14-2 (1) of the Act shall submit to the
Minister of Commerce, Industry and Energy a written application for cash grant with the attachment of a written investment plan comprising
the matters of the following subparagraphs:
1.Total investment amount and contents thereof;
2.Size of employment;
3.Effect of technology diffusion;
4.Extent of contribution to the local economy; and
5.Other matters determined by the Minister of Commerce, Industry and Energy.
(2)The Minister of Commerce, Industry and Energy shall, upon the receipt of an application under the provisions of paragraph (1),
consult with the Minister of Planning and Budget on whether or not a cash grant is to be awarded, amount to be granted, etc. after
negotiating with the foreigner.
(3) The Minister of Commerce, Industry and Energy may pay a cash grant at one time in the year following the year in which the cash
grant is decided, or in installments not exceeding ten times within the period of five years from such decision. <Amended by Presidential
Decree No. 18662, Dec. 31, 2004>
(4) In case where the Minister of Commerce, Industry and Energy pays a cash grant in installments under the provisions of paragraph
(3), he may adjust the amount and time for grant of the cash grant payed in installments taking into account any change of the investment
plan and the actual results of the execution of the cash grant payed in installments.
(5) The matters necessary for cash grant, etc. except for the provisions under paragraphs (1) through (4) shall be determined by the
Minister of Commerce, Industry and Energy after undergoing a deliberation by the Commission.
[This Article Newly Inserted by Presidential Decree No. 18222, Jan. 13, 2004]
Article 21 (Operation of Foreign Investment Support Center)
(1)The public officials or the officers or employees of a foreign-investment related agency who have been dispatched (hereinafter
referred to as dispatched officers ) to the Foreign Investment Support Center (hereinafter referred to as the Investment Support
Center ) under Article 15 (1) of the Act shall be directed and supervised by the president of the Korea Trade-Investment Promotion
Agency with respect to their service.
(2)The president of the Korea Trade-Investment Promotion Agency shall draw up a written opinion on the performance evaluation of the
public officials dispatched in accordance with the provisions of paragraph (1), in accordance with the provisions of Article 37-2
(3) of the Decree on the Appointment of Public Officials or of Article 31-3 (3) of the Decree on the Appointment of Local Public
Officials, and send the written opinion to the heads of the relevant administrative agencies from which the public officials concerned
were dispatched, and the heads of the relevant administrative agencies who receive these written opinions shall take them into consideration
when evaluating the performance of the public officials concerned.
(3)For the purpose of the efficient implementation of the foreign investment support business, the president of the Korea Trade-Investment
Promotion Agency may operate a general administrative support center which is mainly composed of the dispatched officers as provided
in Article 15 (3) of the Act and teams of exclusive responsibility for foreign investment inducement which are mainly composed of
officers and employees of the Korea Trade-Investment Promotion Agency. <Amended by Presidential Decree No. 17474, Dec. 31, 2001>
(4)The president of the Korea Trade-Investment Promotion Agency shall draw up an annual comprehensive plan for foreign investment
inducement for the year and submit it to the Minister of Commerce, Industry and Energy no later than January 31 each year, and shall
analyze quarterly foreign investment achievements and report the result of the analysis to the Minister of Commerce, Industry and
Energy within one month after the expiration of each quarter. <Amended by Presidential Decree No. 17474, Dec. 31, 2001>
(5)through (7) Deleted. <by Presidential Decree No. 16583, Oct. 27, 1999>
(8)Necessary matters other than those prescribed in paragraphs (1) through (4) concerning the organization and operation of the Investment
Support Center shall be determined by the president of the Korea Trade-Investment Promotion Agency subject to the deliberation of
the Foreign Investment Working Committee (hereinafter referred to as the Working Committee ) under Article 27 (3) of the Act. <Amended
by Presidential Decree No. 16583, Oct. 27, 1999; Presidential Decree No. 17474, Dec. 31, 2001>
Article 21-2 (Designation and Operation of Project Manager)
(1)The president of the Korea Trade-Investment Promotion Agency may designate a person falling under any of the following subparagraphs
as a project manager by foreign investor or foreign-capital invested company in order to efficiently support the investment affairs
of a foreign investor or foreign-capital invested company. In this case, the president of the Korea Trade Investment Promotion Agency
shall notify the relevant foreign investor and foreign-capital invested company of the designated project manager; <Amended by
Presidential Decree No. 18662, Dec. 31, 2004>
1.Employee of the Korea Trade Investment Promotion Agency;
2.Dispatched officer; or
3.Public official or employee of central administration agency, local government, government-invested institution or public institution
pursuant to the Framework Act on the Management of Government-Invested Institutions related to foreign investment. In this case,
he shall obtain approval of the head of the concerned agency, government or institution.
(2)The president of the Korea Trade-Investment Promotion Agency may notify the central administrative agency, local governments, government-invested
agencies and public agencies in charge of foreign investment-related affairs (hereinafter referred to as the related administrative
agencies, etc. ) of the project manager designated by foreign investor and foreign-capital invested company under the provisions
of paragraph (1) (hereinafter referred to as the project manager ).
(3)The related administrative agencies, etc. who are notified of under the provisions of paragraph (2) shall positively cooperate
therewith when the project manager requests cooperation with respect to an offer of materials and a treatment of civil affairs related
with foreign investment.
(4) A project manager shall perform the affairs falling under any of the following subparagraphs:
1.Collection, offer of data or information and mediation of interview at the request of a foreign investor or foreign-capital invested
company;
2.Presentation of opinion regarding a support related with a foreign investment under the provisions of Articles 9, 13, 14 and 14-2
of the Act;
3.Assist in the affairs and vicarious execution of civil affairs related with a foreign investment under the provisions of Articles
15 and 17 of the Act;
4.Assist in settlement of living of the officers, employees and their families of a foreign investor or foreign-capital invested company,
such as house rent and guide to school admission; and
5.Other affairs related with a foreign investment.
(5) The president of the Korea Trade-Investment Promotion Agency shall provide opportunities for education necessary for enhancing
the quality and expertise of the project manager.
(6) The president of the Korea Trade-Investment Promotion Agency may treat a project manager preferentially in relation to promotion,
transfer and reward.
[This Article Newly Inserted by Presidential Decree No. 18222, Jan. 13, 2004]
Article 21-3 (Operation, etc. of Grievance Settlement Organ)
(1) Deleted. <by Presidential Decree No. 17135, Feb. 24, 2001>
(2) The head of the grievance settlement organ under Article 15 (7) of the Act shall be appointed from among foreign investment ombudsmen
under Article 15-2 of the Act (hereinafter referred to as the foreign investment ombudsmen ) or persons who have extensive experience
and knowledge in the field of the business matters concerning foreign investment. <Amended by Presidential Decree No. 17135, Feb.
24, 2001>
(3)The head of the grievance settlement organ may request the relevant administrative agency or the foreign-investment related agency
to cooperate for the purpose of solving problems experienced by foreign-capital invested companies and performing duties relating
thereto. In this case, the agency thus requested to cooperate shall notify its opinion on the matter under consideration within seven
days after the date on which the request has been made.
(4)Deleted. <by Presidential Decree No. 17474, Dec. 31, 2001>
(5)The head of the grievance settlement organ may, in order to efficiently solve problems experienced by foreign-capital invested
companies, designate and manage by region and invested company the staff taking exclusive charge of grievance settlement for whom
pay is given on the basis of piece rate system.
(6)The head of the grievance settlement organ shall analyze the results of solving problems experienced by foreign-capital invested
companies by quarter and report to the Minister of Commerce, Industry and Energy within one month after each quarter expires. <Amended
by Presidential Decree No. 17474, Dec. 31, 2001>
(7)Necessary matters other than those prescribed in paragraphs (2), (3), (5), and (6) concerning the organization and operation of
the grievance settlement organ shall be determined by the head of the Korea Trade-Investment Promotion Agency subject to the deliberation
of the Working Committee. <Amended by Presidential Decree No. 17474, Dec. 31, 2001>
[This Article Newly Inserted by Presidential Decree No. 16583, Oct. 27, 1999]
Article 21-4 (Functions, etc. of Foreign Investment Ombudsmen)
(1) The terms of office of foreign investment ombudsmen under Article 15-2 of the Act shall be three years, but they may be reappointed.
(2) The foreign investment ombudsmen shall perform the following business matters:
1.Collection of information concerning problems experienced by foreign-capital invested companies;
2.Preparation of policy measures for improving foreign investment system and recommendation of the implementation thereof to relevant
administrative agencies; and
3.Other necessary matters for assisting foreign-capital invested companies in solving their problems.
[This Article Newly Inserted by Presidential Decree No. 17474, Dec. 31, 2001]
Article 22 (Foreign Investment Promotion Office)
The foreign investment promotion office as prescribed in Article 16 of the Act shall implement tasks which fall under the provisions
of the following subparagraphs: <Amended by Presidential Decree No. 17474, Dec. 31, 2001>
1.The encouragement and verification of the proper treatment of civil petitions transmitted in accordance with the provisions of Article
17 (3) of the Act;
1-2.The vicarious execution of civil petition affairs, such as the preparation and submission of civil petition documents, concerning
foreign investment;
2.The inducement of, advertisement on, and support for foreign investment;
3.The receipt, examination, and treatment of difficulties experienced or matters recommended by foreign investors or foreign-capital
invested companies;
4.The exchange of information, communication of business matters, and administrative cooperation with the Investment Support Center,
the trade centers, branches, offices of the Korea Trade-Investment Promotion Agency, and other agencies related to the inducement
of foreign investment;
5.The examination of the legitimacy of reasons for refusal to grant permission as notified in accordance with the provisions of the
latter part of Article 17 (5) of the Act;
6.The operation of the Foreign Investment Inducement Council as prescribed in Article 23; and
7.Other kinds of administrative support concerning foreign investment.
Article 23 (Foreign Investment Inducement Council)
(1)In order to deliberate on matters falling under the following subparagraphs, a Foreign Investment Inducement Council (hereinafter
referred to as the Council ) may be established at the Special Metropolitan City, a Metropolitan City, and a Do (hereinafter referred
to as the City/Do ):
1.The inducement plan, advertizement plan, and support plan with respect to foreign investment;
2.The consultation for the solution of difficulties experienced by foreign investors or foreign-capital invested companies;
3.Matters concerning the consultation for the proper treatment of civil petitions as prescribed in Article 17 of the Act; and
4.Other matters deemed necessary by the Special Metropolitan City Mayor, a Metropolitan City Mayor, and a Do governor (hereinafter
referred to as the Mayor/Do governor ), for the inducement of foreign investment.
(2)The chairman of the Council shall be a public official at the level of director or above from among those who belong to the City/Do,
and the members of the Council shall be the persons falling under the following subparagraphs: <Amended by Presidential Decree
No. 16583, Oct. 27, 1999; Presidential Decree No. 18222, Jan. 13, 2004>
1.Persons appointed by the Mayor/Do governor from among the public officials under his jurisdiction;
2.From among the public officials or other employees of the competent Si/Gun/Gu (referring to the autonomous Gu; hereinafter the same
shall apply) or special local administrative agency or of agencies related to the disposal of civil petitions as prescribed in Tables
1 and 2 of the Act, persons designated by the head of the Si/Gun/Gu, special local administrative agency, or agency concerned upon
the request of the Mayor/Do governor;
3.From among the heads of the trade centers, branches, and offices of the Korea Trade-Investment Promotion Agency, the persons designated
by the head of the Investment Support Center at the request of the Mayor/Do governor; and
4.Persons commissioned by the Mayor/Do governor from among persons with extensive experience and knowledge in the field of the business
matters of foreign investment.
(3)In designating or commissioning members of the Council as prescribed in paragraph (2), the members who can participate in all the
meetings of the Council and the members who, according to the decision of the chairman of the Council, can participate in only those
meetings at which matters relevant to the members concerned are discussed may be divided in the process of the designation or commission.
(4)The meeting of the Council shall pass a resolution with the attendance of a majority of the members who can participate in the
meeting concerned in accordance with the provisions of paragraph (3), and the approval of a majority of the attending members.
(5)Necessary matters concerning the operation of the Council other than those prescribed in paragraphs (1) through (4) shall be determined
by the Mayor/Do governor through the resolution of the Council.
Article 24 (Treatment of Civil Petitions by Foreign Investors)
(1)The scope of the civil petitions to be directly treated, and the treatment period, as prescribed in Article 17 (2) and (5) of the
Act shall be as shown in Table 1 of this Decree.
(2)The treatment period for the civil petitions to be treated in bulk and the civil petitions to be individually treated as prescribed
in Article 17 (5) of the Act shall be as follows:
1.For the civil petitions to be treated in bulk: The period shown in Table 2 of this Decree: Provided, That where civil petitions
which concern the permission on the right column of Table 1 of the Act are individually received, the treatment period as prescribed
by the relevant Acts and subordinate statutes; and
2.For the civil petitions to be individually treated: The treatment period as prescribed by the relevant Acts and subordinate statutes.
(3)Where the head of a civil petitions treatment agency, having received civil petitions to be treated in bulk, has requested consultation
with the head of the relevant agency in accordance with the provisions of Article 17 (4) of the Act, the head of the relevant agency
shall submit his opinions to the head of the civil petitions treatment agency by one day before the last day of the treatment period
as shown in Table 2 of this Decree (where the treatment period as shown in Table 2 exceeds seven days, by two days before the last
day of the treatment period).
(4)The starting day of reckoning the treatment period as prescribed in paragraphs (1) and (2) shall be the day of the receipt of the
civil petition concerned by the head of the civil petitions treatment agency or the dispatched officer concerned.
(5)The term other permission as prescribed by the Presidential Decree in Table 2 of the Act shall mean the business matters of civil
petitions as shown in Table 3 of this Decree.
(6)Where the head of a civil petitions treatment agency or a dispatched officer makes notification of his refusal to grant permission
in accordance with the latter part of Article 17 (5) of the Act, he shall explicitly indicate the reasons and the legal foundations
for the refusal.
(7)The term period as prescribed by the Presidential Decree in the former part of Article 17 (7) of the Act shall mean three days.
(8)Where the head of a civil petitions treatment agency grants permission with conditions attached in accordance with the provisions
of Article 17 (10) of the Act, he shall attach the condition that insufficient points be supplemented no later than the time as prescribed
by one of the following subparagraphs:
1.For permission as prescribed in subparagraph 1 or 2 of Table 1 of the Act: The time of the application for the construction permission
(where construction permission is considered to be granted, the time of the report on the starting of the construction);
2.For permission as prescribed in subparagraph 3 of Table 1 of the Act: The time of the report on the starting of the construction;
3.For permission as prescribed in subparagraph 4 of Table 1 of the Act: The time of the report on the starting of the operation; and
4.For permission as prescribed in subparagraph 5 of Table 1 of the Act: The time of the registration into the constructions ledger.
(9)Where the person who receives permission with conditions attached in accordance with the provisions of Article 17 (10) of the Act
makes an application for permission as prescribed by one of subparagraphs of paragraph (8), he shall submit to the head of the civil
petitions treatment agency a written confirmation that he has completed the implementation of the conditions mentioned above.
(10)Deleted. <by Presidential Decree No. 18222, Jan. 13, 2004>
(11)Where a reasonable and objective ground has been deemed to exist for not being able to properly treat civil petitions within the
treatment period as prescribed in paragraph (1) or (2), the head of the civil petitions treatment agency concerned may extend the
treatment period only once. In this case, the head of the civil petitions treatment agency shall determine the extended treatment
period anticipated to be necessary for proper treatment, and notify the applicant for the permission concerned (where the application
for permission has been vicariously done by the Investment Support Center, the head of the Investment Support Center) of the extended
treatment period and the reasons for the extension of the treatment period, and where the head of the Investment Support Center has
received the notification, he shall, without delay, notify the original applicant for the permission concerned of the contents of
the said notification.
(12)Where supplement or correction has been deemed necessary with respect to the contents of the application for the treatment of
civil petitions to be treated in bulk, civil petitions to be individually treated, or civil petitions to be directly treated as prescribed
in Article 17 of the Act, the head of the civil petitions treatment agency concerned or the dispatched officer concerned may determine
the period for the supplement or correction and request the person concerned to supplement or correct within the said period. In
this case, the period consumed for the supplement or correction shall not be included in the treatment period as prescribed in paragraphs
(1) and (2).
(13)Except where otherwise provided in the Act or this Decree, the treatment of civil petitions which concern foreign investment shall
be governed by the Civil Petitions Treatment Act.
CHAPTER IV FOREIGN INVESTMENT ZONE
Article 25 (Designation of Foreign Investment Zone)
(1)In case where the Mayor/Do governor intends to designate a zone of Article 18 (1) 1 of the Act pursuant to the fore part of the
same paragraph as foreign investment zone, he shall set up a designation plan including the matters of following subparagraphs and
submit it to the Minister of Commerce, Industry and Energy: <Amended by Presidential Decree No. 18662, Dec. 31, 2004>
1.Location and extent of foreign investment zone;
2.Name and purpose of designation of foreign investment zone;
3.Period and method of development of foreign investment zone;
4.Qualification for occupant enterprise and principal category of business to attract;
5.Business operator and administration agency;
6.Method of business operation; and
7.Land utilization plan and principal infrastructure installation plan.
(2) The Mayor/Do governor shall announce the matters of the following subparagraphs when he has designated the zone of Article 18
(1) 1 of the Act as foreign investment zone pursuant to the fore part of paragraph (1) of the same Article: <Amended by Presidential
Decree No. 18662, Dec. 31, 2004>
1.Name and purpose of designation of foreign investment zone;
2.Period and method of development of foreign investment zone;
3.Qualification for occupant enterprise and principal category of business to attract; and
4.Method of public reading of the relevant drawing and document.
(3)The term foreign investment which meets the criteria as prescribed by the Presidential Decree in Article 18 (1) 2 of the Act
shall mean a foreign investment which falls under any of the following subparagraphs. In this case, in computing the foreign investment
amount, the portion corresponding to the owning rate as computed by the calculation methods
under Article 116-2 (11) and (12) of the Enforcement Decree of the Restriction of Special Taxation Act, shall not be counted in the
foreign investment amount in the case of the foreign corporation whose stocks or equity shares are directly or indirectly owned by
Korean citizens (excluding the persons falling under the provisions of Article 3) or Korean corporations: <Amended by Presidential
Decree No. 16330, May 24, 1999; Presidential Decree No. 16720, Feb. 23, 2000; Presidential Decree No. 17135, Feb. 24, 2001; Presidential
Decree No. 17474, Dec. 31, 2001; Presidential Decree No. 17851, Dec. 30, 2002; Presidential Decree No. 18222, Jan. 13, 2004; Presidential
Decree No. 18662, Dec. 31, 2004; Presidential Decree No. 18736, Mar. 8, 2005>
1.Where the amount of foreign investment is not less than thirty million U.S. dollars and the plant facilities needed for running
a manufacturing business or a business under the provisions of Article 116-2 (1) of the Enforcement Decree of the Restriction of
Special Taxation Act are newly installed;
2.Deleted; <by Presidential Decree No. 18222, Jan. 13, 2004>
2-2.Where the amount of foreign investment is not less than twenty million U.S. dollars and the facilities needed for running a business
falling under any of the following items are newly installed;
(a)A tourist hotelkeeping business and a floating tourist hotelkeeping business as prescribed in Article 2 (1) 2 (a) and (b) of the
Enforcement Decree of the Tourism Promotion Act;
(b)A universal recreation business as prescribed in Article 2 (1) 3 (b) of the Enforcement Decree of the Tourism Promotion Act, and
a universal amusement facility business as prescribed in subparagraph 5 (a) of the same Article; and
(c)International conference facilities as prescribed in subparagraph 3 of Article 2 of the International Conference Industry Promotion
Act;
3.Where the amount of foreign investment is not less than ten million U.S. dollars and the facilities needed for the running of a
business falling under any of the following items are newly installed:
(a) A combined cargo terminal business as provided in subparagraph 8-2 of Article 2 of the Goods Distribution Promotion Act;
(b) A business of creating and operating a joint collection and delivery complex as provided in subparagraph 15 of Article 2 of the
Distribution Industry Development Act;
(c) A business of operating harbor facilities as provided in subparagraph 6 of Article 2 of the Harbor Act. and a physical distribution
business as provided in Article 5 (8) of the Enforcement Decree of the Restriction of Special Taxation Act which is run within harbor
background complexes as provided in subparagraph 7 of the same Article;
(d) A business of operating airport facilities as provided in subparagraph 6 of Article 2 of the Aviation Act, and a physical distribution
industry as provided in Article 5 (8) of the Enforcement Decree of the Restriction of Special Taxation Act which is operated within
the airport zone as provided in subparagraph 7 of Article 2 of the same Act; and
(e) A business of creating infrastructure facilities (limited to revertible facilities as provided in subparagraph 3 of Article 2
of the Act on Private Participation in Infrastructure) by implementing a private investment project as provided in subparagraph 5
of Article 2 of the same Act; and
4.Where a research facility is newly installed or added in order to perform research and development activities for a business under
Article 116-2 (1) of the Enforcement Decree of the Restriction of Special Taxation Act (hereafter in this subparagraph referred to
as the business ), which satisfies the requisites falling under each of the following items:
(a) The amount of foreign investment shall be not less than 5 million U.S. dollars; and
(b) The scale of the regular employment of the manpower exclusively charged with research having a degree of master or higher related
with the business and a three-year or more research career shall be not less than ten persons.
(4) The standards as prescribed by the Presidential Decree as referred to in Article 18 (2) of the Act shall mean all the matters
of the following subparagraphs: <Amended by Presidential Decree No. 18662, Dec. 31, 2004>
1.The total sum of the amount invested by 2 or more foreign investors shall be US$30,000,000 or more;
2.The category of business or business being operated shall fall under the category of business or business pursuant to the provisions
of subparagraphs of (3); and
3.The facility pursuant to the provisions of subparagraphs of paragraph (3) shall be installed within the same national or local industrial
complex, or adjacent thereto.
(5)Where the Mayor/Do governor intends to designate a zone of Article 18 (1) 2 of the Act as foreign investment zone in accordance
with the provisions of fore part of paragraph (1) of the same Article, he shall draw up a designation plan (refers to the development
plan pursuant to the hind part of Article 18 (1) of the Act, where the foreign investment zone concerned is developed into a local
industrial complex. The same shall apply hereinafter) which includes matters falling under the following subparagraphs, and submit
it to the Minister of Commerce, Industry and Energy: Provided, That where all or part of a national industrial complex or local industrial
complex whose development is already completed, is to be designated as a foreign investment zone, matters prescribed in subparagraphs
8 through 12 may be omitted: <Amended by Presidential Decree No. 18662, Dec. 31, 2004>
1.Title, location, and area of the foreign investment zone;
2.Method of development or management of the foreign investment zone;
3.Content of investment, scale of employment, and content of business of the foreign-capital invested company to move into the foreign
investment zone;
4.Possibility of fulfillment of foreign investment liable for inducement activity;
5.Cost and expected effect of designation of foreign investment zone;
6.Fund-raising plan;
7.Support plan for principal facilities to the foreign investment zone;
8.Operator of development project;
9.Method and period of execution of the development project;
10.Land utilization plan and principal infrastructure installation plan;
11.Where there exists land, buildings, other objects or rights which are to be expropriated or used, the itemized contents thereof;
12.Materials for examination of environmental effect as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy;
and
13.Such other matters as determined by the Commission.
(6)Where the Mayor/Do governor intends to draw up the designation plan as prescribed in paragraph (3), he shall hear the opinions
of the relevant head of Si/Gun/Gu, residents, and experts. <Amended by Presidential Decree No. 17135, Feb. 24, 2001; No. 18662,
Dec. 31, 2004>
(7)The Commission shall deliberate, on the basis of the designation plan, on the desirability of the designation, comprehensively
considering effects on the national economy such as the feasibility of the foreign investment subjected to the on-going inducement
activity, balanced regional development, the efficient utilization of the national territory, and the increase of employment. <Amended
by Presidential Decree No. 18662, Dec. 31, 2004>
(8)Where the designation has not been deemed necessary as a result of the deliberation under paragraph (5), the Mayor/Do governor
shall not designate the region concerned as a foreign investment zone. <Amended by Presidential Decree No. 17135, Feb. 24, 2001;
No. 18662, Dec. 31, 2004>
(9) Foreign-capital invested companies shall, in accordance with the designation plan under the provisions of paragraph (5), satisfy
the criteria under paragraphs (3) and (4) within 5 years from the date of public notice under Article 18 (3) of the Act. <Newly
Inserted by Presidential Decree No. 17135, Feb. 24, 2001; No. 18662, Dec. 31, 2004>
(10)The Mayor/Do governor shall develop the foreign investment zone concerned in accordance with the designation plan having been
deliberated by the Commission, and where the Mayor/Do governor intends to alter the matters as determined by the Ordinance of the
Ministry of Commerce, Industry and Energy in the designation plan, he shall go through the prior deliberation of the Commission.
<Amended by Presidential Decree No. 17135, Feb. 24, 2001>
(11)Necessary matters concerning the designation and development of a foreign investment zone other than those as prescribed in paragraphs
(1) through (10) shall be determined by the Commission. <Amended by Presidential Decree No. 17135, Feb. 24, 2001; Presidential
Decree No. 18662, Dec. 31, 2004>
Article 26 (Management of Foreign Investment Zones)
(1)The agency in charge of the management of foreign investment zone (hereafter in this Article, referred to as management agency
) pursuant to the provisions of Article 18 (4) of the Act shall manage the foreign investment zone in accordance with the designation
plan prescribed by Article 25 (1) and (5). <Amended by Presidential Decree No. 18662, Dec. 31, 2004>
(2)The management agency, which manages foreign investment zone in accordance with the provisions of paragraph (1), shall take into
account preferentially the convenience of the foreign investors or foreign-capital invested companies and shall positively endeavor
to render support for securing various infrastructures needed for supporting the business of the foreign-capital invested companies
in the zone, such as financial institutions, information and communication facilities, and goods distribution facilities, as well
as support for securing medical facilities, educational facilities, and housing. <Amended by Presidential Decree No. 18662, Dec.
31, 2004>
(3)Matters necessary for the management of a foreign investment zone other than those provided in paragraphs (1) and (2) shall be
determined by the Commission. <Newly Inserted by Presidential Decree No. 17135, Feb. 24, 2001>
Article 26-2 (Cancellation of Designation of Foreign Investment Zone)
(1) The Mayor/Do governor shall, in case where a zone of Article 18 (1) 2 of the Act designated as foreign investment zone pursuant
to the fore part of paragraph (1) of the same Article comes not to satisfy the designation criteria under the provisions of Article
25, order the foreign-capital invested company to equip itself with the criteria with fixing a specified period within the scope
of 6 months (hereinafter referred to as the implementation period ) pursuant to the provisions of Article 18-2 of the Act: Provided,
That the Mayor/Do governor may, in case where deemed that the foreign-capital invested company has an inevitable ground, extend the
relevant period only once within the scope not exceeding the initial implementation period. <Amended by Presidential Decree No.
18662, Dec. 31, 2004>
(2) The Mayor/Do governor shall, in case where the foreign-capital invested company has failed to satisfy the designation criteria
within the implementation period, request the Commission within 30 days to deliberate on the cancellation of the designation.
(3) Matters necessary for the cancellation of designation of a foreign investment zone other than those provided in paragraphs (1)
and (2) shall be determined by the Commission.
[This Article Newly Inserted by Presidential Decree No. 17135, Feb. 24, 2001]
CHAPTER V FOLLOW-UPMANAGEMENT OF FOREIGN INVESTMENT
Article 27 (Procedures for Registration of Foreign-Capital Invested Company)
(1)In accordance with the provisions of Article 21 of the Act, a foreign investor or a foreign-capital invested company shall file
the registration of the foreign-capital invested company with the Minister of Commerce, Industry and Energy within thirty days from
the day on which the relevant cause for registration occurs. <Amended by Presidential Decree No. 16330, May 24, 1999; Presidential
Decree No. 18222, Jan. 13, 2004>
(2)Where a foreign-capital invested company registered in accordance with the provisions of paragraph (1) falls under any of the following
subparagraphs, it shall finish the alteration registration of the foreign-capital invested company within thirty days from the day
on which a cause for the alteration registration has occurred:
1.Where it has done the report on the acquisition of stocks occasioned by a merger in accordance with the provisions of Article 7
of the Act;
2.Where it has done the report in accordance with the provisions of Article 23 (1) of the Act, and has completed the conveyance or
decrease of the stocks;
3.Where the trade name or title of the foreign-capital invested company has been changed; and
4.Where an alteration has been made with respect to the subject matter as prescribed in any subparagraph of Article 6.
Article 28 (Application for Registration Cancellation)
(1) Where a foreign investor comes to fall under the provisions of Article 21 (3) 1 through 3 of the Act or the provisions of Article
30 (2) of this Decree, he may make an application for registration cancellation to the Minister of Commerce, Industry and Energy
in accordance with the provisions of Article 21 (3) 4 of the Act. <Amended by Presidential Decree No. 16330, May 24, 1999; Presidential
Decree No. 17474, Dec. 31, 2001; Presidential Decree No. 18222, Jan. 13, 2004>
(2) The date of cessation of the business of the foreign-capital invested company under Article 21 (3) 1 of the Act shall be the date
of cessation of business which is reported under Article 5 (4) of the Value-Added Tax Act. <Newly Inserted by Presidential Decree
No. 16330, May 24, 1999; Presidential Decree No. 18222, Jan. 13, 2004>
Article 29 (Restrictions on Disposal of Capital Goods)
(1)The term cases as prescribed by the Presidential Decree in the provisions of Article 22 (1) of the Act shall mean where the capital
goods which had been introduced into this nation with their customs duties exempted in accordance with the provisions of Article
121-3 (1) of the Restriction of Special Taxation Act were disposed of or used after the expiration of five years from the day of
the receipt of the importation report as prescribed by the Customs Act. <Amended by Presidential Decree No. 16330, May 24, 1999>
(2)The term cases which meet the criteria prescribed by the Presidential Decree in the provisions of Article 22 (3) of the Act shall
mean cases which fall under any of the following subparagraphs:
1.In a case which falls under the provisions of Article 22 (3) 1 of the Act, where the ratio of foreign investment is under 10/100;
and
2.In a case which falls under the provisions of Article 22 (3) 2 of the Act, where it falls under one of the following items:
(a)Where a company whose ratio of foreign investment is under 50/100 and whose largest stockholder is not a foreign investor (including
persons of special relationship as prescribed in Article 7 (1)) acquires the stocks of a domestic company;
(b)Where a foreign-capital invested company of financial business or insurance business, all or part of whose business activities
consist of the acquisition of the stocks of other companies, acquires the stocks of other companies in accordance with the provisions
of other Acts and subordinate statutes; and
(c)Where not more than 10/100 of the total number of the stocks issued by, or the total equity investment of a domestic company is
acquired.
(3)The Commissioner of the National Tax Administration and the Commissioner of the Korea Customs Service shall examine whether a foreign-capital
invested company has violated the provisions of Article 22 (1), (3) or (4) of the Act with respect to business matters which fall
under their jurisdiction, and make a report on the result of the examination to the Minister of Commerce, Industry and Energy. <Amended
by Presidential Decree No. 16330, May 24, 1999>
Article 30 (Conveyance of Stocks)
(1)A foreign investor who intends to make the report on the conveyance of stocks in accordance with the provisions of Article 23 (1)
of the Act shall make the report to the Minister of Commerce, Industry and Energy within thirty days from the day falling under any
of the following subparagraphs: <Amended by Presidential Decree No. 16330, May 24, 1999>
1.Where the stocks are to be conveyed, the day on which the conveyance contract is concluded; and
2.Where the capital is to be decreased, the day on which the period of peremptory notice to the creditor expires as prescribed in
Article 439 of the Commercial Act.
(2)Where a foreign investor has come not to hold any of the stocks he previously held because he has conveyed all of the stocks held
by himself to a Korean citizen or corporation or because the foreign-capital invested company concerned has decreased its capital,
the Minister of Commerce, Industry and Energy shall cancel the registration of the foreign-capital invested company concerned as
prescribed in Article 21 (1) of the Act. <Amended by Presidential Decree No. 16330, May 24, 1999>
(3)Where a foreigner takes over from a foreign investor the stocks of a foreign-capital invested company, and where the foreign investor
concerned has made the report as prescribed in paragraph (1) above, the report as prescribed in Article 7 (1) 3 of the Act shall
be regarded as having been made.
(4)Where the Minister of Commerce, Industry and Energy has received the report on the conveyance or the decrease of the stocks from
a foreign investor in accordance with the provisions of paragraph (1) above, he shall, without delay, notify the Commissioner of
the National Tax Administration, the Commissioner of the Korea Customs Service, or the head of the local government concerned of
the contents of the report. <Amended by Presidential Decree No. 16330, May 24, 1999>
CHAPTER VI CONTRACTSFORINTRODUCTIONOF TECHNOLOGY
Article 31 (Scope of Technology Introduction Contracts Required to be Reported)
(1)The scope of technology introduction contracts required to be reported in accordance with the provisions of Article 25 (1) of the
Act shall be limited to contracts, whose contract period or payment period with respect to the compensation for the introduction
of the technology concerned is not less than one year, and which fall under any of the following subparagraphs: <Amended by Presidential
Decree No. 16330, May 24, 1999>
1.A contract needed for the introduction into this nation of the kind of high technology which is absolutely necessary for the strengthening
of international competitiveness of domestic industries under Article 121-6 (1) of the Restriction of Special Taxation Act, and which
is eligible for making the application for the exemption from taxes to the Minister of Finance and Economy;
2.A contract needed for the introduction of technology which concerns aircraft, spacecraft (including the ground support facilities),
and their parts, as prescribed in subparagraphs 2 and 3 of Article 2 of the Aerospace Industry Development Promotion Act; and
3.A contract needed for the introduction of technology which concerns defense products as prescribed in Article 4 (2) 1, 2, 4, 6,
7 and 10 of the Act on Special Measures for Defense Industry.
(2)Where the period of a contract which has already entered into force, is to be extended, the calculation of the period in the main
sentence of paragraph (1) above shall be made by adding the period of the original contract and the period of the extended contract.
Article 32 (Procedures for Report on Contract for Introduction of Technology)
The term period as prescribed by the Presidential Decree in the provisions of Article 25 (2) of the Act shall mean immediately
: Provided, That where the application for the exemption from taxes is made under Article 121-6 of the Restriction of Special Taxation
Act at the time of reporting on the contract for the introduction of technology, it shall mean seven days. <Amended by Presidential
Decree No. 16330, May 24, 1999>
Article 33 Deleted.
<by Presidential Decree No. 16330, May 24, 1999>
CHAPTER VII SUPPLEMENTARY PROVISIONS
Article 34 (Operation of Foreign Investment Commission)
(1)Deleted. <by Presidential Decree No. 16330, May 24, 1999>
(2)The chairman of the Commission (hereinafter referred to as the Chairman ) shall exercise general control over the business affairs
of the Commission, represent the Commission, and convene and preside over the meeting of the Commission. Where the Chairman is unable
to discharge his duties for an unavoidable reason, a member of the Commission as designated by the Chairman shall perform such duties
on behalf of the Chairman.
(3)The president of the Korea Trade-Investment Promotion Agency, the head of the grievance settlement organ, the foreign investment
ombudsmen and the project managers may attend the meetings of the Commission and state their opinions. <Amended by Presidential
Decree No. 16583, Oct. 27, 1999; Presidential Decree No. 17135, Feb. 24, 2001; Presidential Decree No. 18222, Jan. 13, 2004>
(4)The meeting of the Commission shall be held with the attendance of a majority of the members who are entitled to participate in
the meeting concerned, and it shall pass resolutions with the approval of a majority of the members present.
(5)The Commission may, if deemed necessary, have the person concerned state his opinions.
(6)Where the Chairman convenes a meeting of the Commission, he shall notify each member of the Commission of the date and time, place,
and purpose of the meeting no later than three days before the beginning of the meeting: Provided, That this shall not apply in an
emergency.
(7)The Commission shall have a secretary for the treatment of its administrative affairs, and the secretary shall be appointed by
the Chairman of the Commission from among the public officials of the Ministry of Finance and Economy.
Article 35 (Composition, and Operation of Foreign Investment Working Committee)
(1)The Vice-Minister of Commerce, Industry and Energy shall be the Chairman of the Working Committee, and the persons of the following
subparagraphs shall be the members thereof: <Amended by Presidential Decree No. 16330, May 24, 1999; Presidential Decree No. 16583,
Oct. 27, 1999; Presidential Decree No. 17135, Feb. 24, 2001; Presidential Decree No. 18222, Jan. 13, 2004>
1.A person designated, upon the request of the Minister of Commerce, Industry and Energy, by the head of the concerned Ministry or
agency from among the public officials of Grade in the Ministry of Commerce, Industry and Energy and other relevant Ministries or
agencies;
2.A Vice-Mayor or vice-governor of the relevant City/Do and a person commissioned by the Chairman from among persons with extensive
experience and knowledge in the field of the business matters of foreign investment; and
3.The head of the Investment Support Center, the head of the grievance settlement organ and the foreign investment ombudsmen.
(2)Deleted. <by Presidential Decree No. 16583, Oct. 27, 1999>
(3)The Working Committee shall have a secretary for the treatment of its administrative affairs, and the secretary shall be appointed
by the Chairman of the Working Committee from among the public officials under the jurisdiction of the Ministry of Commerce, Industry
and Energy. <Amended by Presidential Decree No. 16330, May 24, 1999>
(4)The Commission shall install, under the jurisdiction of the Working Committee, a Foreign Investment Inducement Subcommittee with
a member of the Working Committee of the Ministry of Commerce, Industry and Energy as its Chairman, for the integration and management
of foreign investment inducement situations, the encouragement and verification of the treatment of civil petitions concerning foreign
investment, and the examination of the agenda of the Working Committee concerning foreign investment inducement activities.
(5)Necessary matters concerning the operation of the Commission, the Working Committee, and the Subcommittee other than those as prescribed
in this Decree shall be determined by the Chairman of the Commission through the resolution of the Commission.
Article 36 (Report on Materials concerning Present Situation of Foreign Investment)
(1)The President of the Bank of Korea shall integrate the current situation of the outflow and inflow of foreign investment funds
and the current payment status of prices for technology introduction according to the contract for the introduction of technology
under Article 25 of the Act each month, and shall report on the result of the integration to the Minister of Commerce, Industry and
Energy no later than the 10th of the following month. <Amended by Presidential Decree No. 16330, May 24, 1999; Presidential Decree
No. 17135, Feb. 24, 2001>
(2)The Minister of Commerce, Industry and Energy shall periodically gather the materials concerning the current situation of foreign
investment and foreign-capital invested companies and send the materials to agencies related to foreign investment inducement. <Amended
by Presidential Decree No. 16330, May 24, 1999>
Article 37 (Disposal of Capital Goods)
(1)Where the collector of a customs house intends to dispose of capital goods in accordance with the provisions of Article 28 (5)
of the Act, he shall submit the list of the capital goods to be disposed of to the Minister of Commerce, Industry and Energy via
the Administrator of the Korea Customs Service. <Amended by Presidential Decree No. 16330, May 24, 1999>
(2)The Minister of Commerce, Industry and Energy may, after consulting with the head of the relevant agency, request the collector
of a customs house to postpone the disposal as prescribed in paragraph (1) above. In this case, the request to the collector of a
customs house shall be made within twenty days from the day on which the list of the capital goods concerned is submitted. <Amended
by Presidential Decree No. 16330, May 24, 1999>
(3)Where no request for the postponement has been made within the period as prescribed in the latter part of paragraph (2) above,
the collector of the customs house concerned shall dispose of the capital goods concerned and report to the Minister of Commerce,
Industry and Energy. <Amended by Presidential Decree No. 16330, May 24, 1999>
Article 38 (Examination and Confirmation of Capital Goods Introduced)
(1)The term capital goods which meet the criteria as prescribed by the Presidential Decree in the provisions of Article 29 (1) of
the Act shall mean those falling under any of the following subparagraphs: <Amended by Presidential Decree No. 16330, May 24,
1999>
1.Capital goods which must be subjected to the exemption from the customs duties, special consumption tax, and value-added tax in
accordance with the provisions of Article 121-3 (1) of the Restriction of Special Taxation Act;
2.Capital goods introduced into this nation by a foreign investor as the object of his investment; and
3.Capital goods introduced into this nation by investment of foreign payment instruments in a foreign-capital invested company by
a foreign investor or investment of the domestic payment instruments into which the foreign payment instruments have been exchanged,
and which fall under any of the following items:
(a)Used capital goods; and
(b)Capital goods which belong to the objects designated and publicly announced by the Minister of Commerce, Industry and Energy in
accordance with the provisions of Article 25 of the Enforcement Decree of the Foreign Trade Act.
(2)A person who intends to introduce into this nation capital goods as prescribed in any of the subparagraphs of paragraph (1) above
shall draw up a written specification of the objects to be introduced, which includes such information as the quantities, standard
sizes, and prices, and manufacturers of the capital goods to be introduced, and apply for their examination and confirmation by the
competent Minister before their shipment.
Article 39 (Confirmation of Completion of Investment in Kind)
(1)Where the Commissioner of the Korea Customs Service has confirmed the completion of the investment in kind in accordance with the
provisions of Article 30 (3) of the Act, he shall, without delay, notify the President of the Bank of Korea.
(2)The term technology evaluation agency as prescribed by the Presidential Decree in the provisions of Article 30 (4) of the Act
shall mean evaluation agencies as prescribed in Article 4 (4) of the Enforcement Decree of the Act on Special Measures for Promotion
of Venture Businesses.
Article 40 (Delegation or Entrustment of Authority)
(1)In accordance with the provisions of Article 31 of the Act, the Minister of Commerce, Industry and Energy shall delegate or entrust
his authority according to the following differentiations: <Amended by Presidential Decree No. 16330, May 24, 1999>
1.Authority concerning the report on the contract for the introduction of technology as prescribed in Article 25 (1) through (3) of
the Act shall be entrusted to the competent Minister;
2.Authority as prescribed in Article 28 (2) of the Act concerning the examination of whether the provisions of Article 22 (1) of the
Act have been violated shall be delegated to the Administrator of the Korea Customs Service;
3.Authority as prescribed in Article 28 (2) of the Act concerning the examination of whether the provisions of Article 22 (3) and
(4) of the Act have been violated shall be delegated to the Commissioner of the National Tax Administration; and
4.Authority as prescribed in Article 28 of the Act other than those as prescribed in subparagraphs 2 and 3 above concerning the examination
of the implementation situation of the contents of the permission for or report by foreigners, foreign investors, foreign-capital
invested companies and introducers of technology, and concerning the correction order shall be delegated or entrusted to the competent
Minister, the Commissioner of the National Tax Administration or the Commissioner of the Korea Customs Service, in view of the nature
of their duties and the matter under consideration.
(2)In accordance with the provisions of Article 31 of the Act, the Minister of Commerce, Industry and Energy may entrust his authority
falling under any of the following subparagraphs to the president of the Korea Trade-Investment Promotion Agency (including the heads
of the trade-centers, branches and offices designated by the president of the Korea Trade-Investment Promotion Agency; hereinafter
the same shall apply) and the head of the foreign exchange bank (including the heads of such branches of the foreign exchange bank
as designated by the head of the foreign exchange bank; hereinafter the same shall apply): <Amended by Presidential Decree No.
16330, May 24, 1999; Presidential Decree No. 18222, Jan. 13, 2004>
1.The receipt of the report and the alteration report on foreign investment and the issuance of the certificate of completed report
as prescribed in Articles 5 through 8 of the Act;
2.The registration and cancellation of the registration of foreign-capital invested companies as prescribed in Article 21 of the Act
(excluding any case prescribed in Article 21 (3) 2 of the Act);
3.The receipt of the report on the conveyance of capital goods as prescribed in Article 22 (1) of the Act; and
4.The receipt of the report on the conveyance of the stocks and the cancellation of the registration as prescribed in Article 30.
(3)The competent Minister shall entrust the business matters concerning the examination and confirmation as prescribed in Article
38 (2) to the head of the foreign exchange bank and the head of the Korea Trade-Investment Promotion Agency.
(4)The Mayor/Do governor may, pursuant to the provisions of Article 31 of the Act, delegate the management business pursuant to the
provisions of Article 18 (4) of the Act to the Korea Industrial Complex Corporation pursuant to the provisions of Article 45-3 of
the Industrial Cluster Development and Factory Establishment Act. In this case, the Mayor/Do governor may set up the detailed matters
necessary for the handling of entrusted matters. <Newly Inserted by Presidential Decree No. 18662, Dec. 31, 2004>
(5)Those who have been delegated or entrusted in accordance with the provisions of paragraphs (1) and (2) shall inform or report how
they have handled the delegated or entrusted matters to the Minister of Commerce, Industry and, Energy, those who have been entrusted
pursuant to the provisions of paragraph (3) to the concerned Minister, and those who have been entrusted pursuant to the provisions
of paragraph (4) to the Mayor/Do governor. <Amended by Presidential Decree No. 18662, Dec. 31, 2004>
(6)The Minister of Commerce, Industry and Energy may determine such detailed matters as needed with respect to the treatment of the
matters delegated or entrusted in accordance with the provisions of paragraphs (1) through (3) above. <Amended by Presidential
Decree No. 16330, May 24, 1999; Presidential Decree No. 18662, Dec. 31, 2004>
CHAPTER VIII FINE FOR NEGLIGENCE
Article 41 (Procedure of Imposition and Collection of Fine for Negligence)
(1)When a fine for negligence is imposed pursuant to the provisions of Article 37 (2) of the Act, the relevant violation shall be
inspected and confirmed, and then the person liable for the disposition of fine for negligence shall be informed to pay with the
detail of violation and amount of fine for negligence, etc. described clearly in writing.
(2)When the Minister of Commerce, Industry and Energy intends to impose a fine for negligence pursuant to the provisions of paragraph
(1), he shall fix a period of 10 days or longer and give the person liable for the disposition of fine for negligence an opportunity
to express his opinion orally or in writing (including an electronic document). In this case, if no opinion is heard within the period,
it is deemed that there is no opinion at all.
(3)In deciding the amount of fine for negligence, the Minister of Commerce, Industry and Energy shall consider the motive, result,
etc. of the violation concerned.
(4) The procedure of collection of fine for negligence shall be prescribed by the Ordinance of the Ministry of Commerce, Industry
and Energy.
[This Article Newly Inserted by Presidential Decree No. 18662, Dec. 31, 2004]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on November 17, 1998.
Article 2 (Repeal of Other Acts and Subordinate Statutes)
The Enforcement Decree of the Foreign Investment and Foreign Capital Inducement Act is hereby repealed.
Article 3 (Applicable Cases for Designation of Foreign Investment Zone)
(1)The provisions of Article 25 (1) 1 (d) and 2 shall apply to foreign investments reported on or after the date this Decree enters
into force.
(2)The application of the provisions of Article 25 (1) 2 shall be limited to foreign investments which will have been reported by
December 31, 2003, and which will have completed the payment of the objects of the investments by December 31, 2005. <Amended
by Presidential Decree No. 16720, Feb. 23, 2000; Presidential Decree No. 17135, Feb. 24, 2001>
Article 4 (Transitional Measures concerning Public Notice of Provisions concerning Restrictions on Foreign Investment)
Notwithstanding the provisions of Article 5 (2), the head of the relevant administrative agency shall notify the Minister of Finance
and Economy of the contents of the provisions restricting foreign investment within one month after this Decree enters into force,
and the Minister of Finance and Economy shall integrate the notified contents and make public notice of the integrated contents within
two months after this Decree enters into force.
Article 5 (Relationship with Other Acts and Subordinate Statutes)
Where other Acts and subordinate statutes contain, at the time when this Decree enters into force, a quotation of such provisions
as related to foreign investment from among the Enforcement Decree of the Foreign Investment and Foreign Capital Inducement Act and
the Enforcement Decree of the Foreign Capital Inducement Act, and where there are provisions corresponding to the quoted ones in
this Decree, those Acts and subordinate statutes shall be regarded as having quoted the corresponding provisions of this Decree.
ADDENDA <Presidential Decree No. 16330, May 24, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 16583, Oct. 27, 1999>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16720, Feb. 23, 2000>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicable Cases for Designation of Foreign Investment Zone)The amendments to Article 25 (1) 2 shall apply to foreign investments
with respect to which the designation plan is submitted in accordance with Article 25 (2) on or after the date this Decree enters
into force.
ADDENDUM <Presidential Decree No. 17135, Feb. 24, 2001>
This Decree shall enter into force on the date of its promulgation: Provided, That the amendments to the proviso of Article 2 (2)
shall enter into force three months after the date of its promulgation.
ADDENDA <Presidential Decree No. 17137, Feb. 24, 2001>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 17474, Dec. 31, 2001>
(1) (Enforcement Date) This Decree shall enter into force on January 1, 2002.
(2) (Applicable Cases for Rental Fee of State or Public Property) The amendments to Article 19 (3) shall apply to foreign investments
reported on or after the date this Decree enters into force.
(3) (Applicable Cases for Requirements for Designation of Foreign Investment Zone) The amendments to Article 25 (1) 1 through 3 shall
apply to foreign investments reported on or after the date this Decree enters into force.
ADDENDA <Presidential Decree No. 17686, Jul. 27, 2002>
(1) (Enforcement Date) This Decree shall enter into force on July 27, 2002.
(2) and (3) Omitted.
ADDENDA <Presidential Decree No. 17851, Dec. 30, 2002>
(1) (Enforcement Date) This Decree shall enter into force on January 1, 2003.
(2) (Applicable Examples to Designation of Foreign Investment Zone) The amended provisions of Article 25 (1) 1 (a) and 4 shall start
to apply to the foreign investment reported on and after the date when this Decree enters into force.
ADDENDA <Presidential Decree No. 18039, Jun. 30, 2003>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2003.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 18222, Jan. 13, 2004>
(1)(Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of
Article 25 (1) 3 (b) shall enter into force on February 1, 2004.
(2)(Applicable Examples of Reduction of or Exemption from Rent Fee for Foreign-Capital Invested Company) The amended provisions of
Article 19 (4) 2 shall start to apply to the application for reduction of or exemption from the rental fee filed for the first time
after the enforcement of this Decree.
(3)(Applicable Examples of Foreign Investment Zone) The amended provisions of Article 25 shall start to apply to the foreign investment
reported for the first time after the enforcement of this Decree.
ADDENDA <Presidential Decree No. 18343, Mar. 29, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2004.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 18662, Dec. 31, 2004>
This Decree shall enter into force on Jan. 1, 2005.
ADDENDA <Presidential Decree No. 18736, Mar. 8, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
AsianLII:
Copyright Policy
|
Disclaimers
|
Privacy Policy
|
Feedback
URL: http://www.asianlii.org/kr/legis/laws/edotfipa535
