ΆΓ  Seoul revises regulations on foreign investment

Korea Herald 2001. 2. 21

The Commerce, Industry and Energy Ministry has revised ordinances concerning foreign investments in the nation following the revision of the main law last December.

The revised ordinances stipulate that individual investments should be of at least 50 million won ($40,200) to be designated a foreign investment, up from 25 million won ($20,100) in the past.

The ministry said it raised the amount to cut down on the number of foreigners claiming the status despite lack of actual investments.

Those accepted as foreign investors in Korea will get various benefits in getting Korean visas and tax reductions.

When foreigners switch their equities to shares in Korean firms, the equities must be listed on overseas stock markets.

The changes are to make foreign investments more transparent, the ministry said.

When areas where foreigners build factories in Korea are designated foreign investment zones, their tax and fees for land use will be reduced. But the government won't designate an existing industrial complex a foreign investment zone simply because foreigners invest in plants there.

The ministry will also continue to designate foreign investment zones in the tourism sector through December 2003 to secure more foreign capital.