Navigating Foreign Direct Investment in Korea: A Comprehensive Guide

In the complex landscape of international business, making a Foreign Direct Investment (FDI) in Korea involves a specific set of procedures. At the core of these procedures is on the "Foreign Investment Promotion Act" a stringent regulation in Korea that foreign investors must observe to.

**Application of FDI Approval:

The first step for foreign investors is to apply for an "Approval of FDI" through a bank. This is an exchange transaction that needs to be initiated from the outset, in compliance with the "Foreign Investment Promotion Act"

**Issuance of FDI Approval Certificate:

Once the application is approved, the bank issues an FDI Approval Certificate accompanied by a remittance advice. This document enables the investor to transfer their capital fund from overseas to Korea.

**Transfer of Capital Fund:

Since a bank account in Korea may not yet exist at this stage, the capital fund is temporarily placed in a "Separate Deposit Account" in the bank. This account serves as a holding area for the funds until a bank account is officially opened following registration at the court.

**Registration of the company at the court:

Once you capital arrived in a Korean bank, you can register your company at the court governed your company business address.

**Tax registration:

Once it's registered at the court, you can apply for the tax registration at the tax office with your lease contract(business address).

**Bank account open:

You can open bank accounts with the tax registration copy and move the capital fund into your corp. bank account.

**FDI Registration Certificate:

Once all of above process is completed, you can apply for the FDI registration cert. at the bank.

**VISA application

You can apply for your D series visa once it's done at the Immigration office.

**Time Frame:

The entire process, from applying for FDI approval to opening a bank account, typically takes around two weeks. After this period, foreign investors can officially commence their business operations in Korea.

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**FAQs:

**Q: What is the first step for foreign investors in Korea?

A: Foreign investors need to apply for an "Approval of FDI" through a bank, in accordance with the "Foreign Investment Promotion Act."

**Q: What happens after FDI approval is granted?

A: The bank issues an FDI Approval Certificate along with a remittance advice, enabling the investor to transfer their capital fund from overseas to Korea.

**Q: How long does it take to start a business in Korea as a foreign investor?

A: The entire process, from applying for FDI approval to opening a bank account, typically takes around two weeks.