ΆΓ  Cabinet meeting endorses revised bill on foreign investment

 KoreaHerald 2000.10.11

    The cabinet yesterday endorsed a revised bill on promoting foreign investment in local firms before submitting it to the National Assembly for its approval within this week.

    If the bill gets the parliament's approval, foreigners will be able to provide intellectual property, local real estate and stocks in exchange for an equity stake in Korean firms beginning next year.

    The intellectual property rights include Internet contents, e-commerce skills and business models (BM), the ministry said.

    Direct foreign investment has so far involved mainly capital goods such as cash and machines, and industrial property rights, including patents, utility models and design rights.

    The revision, which is scheduled to go into effect after the approval of the National Assembly, paves the way for foreigners to invest directly through stock swaps with domestic startups.

    If foreigners swap their convertible bonds, depositary receipts, exchangeable bonds and bonds with warrants for domestic company shares, the swap will be recognized as a direct foreign investment eligible for such benefits as tax breaks and remittance guarantees.