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Can I acquire stakes in a company whose capital is KRW 1 bill (total stocks issued: 200,000, price per share: KRW 5,000) with premium, for example 2,000 shares at KRW 50,000 per share?
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No, you can't. Even if the invested amount exceeds KRW 50 million, it should hold more than 10% of the total shares to be deemed as Foreign Invested Enterprise (FIE). In this case, the investor must acquire more than 20,000 shares to be deemed as FIE.
There is an exceptional case that deems it to be FIE, even with less than a 10 percent stake in the business where:
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the amount invested exceeds KRW 50 million and, |
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contracts agreed between you and your counterpart stipulates that you are able to participate in the management, regardless of the stakes you have. |
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