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FDI (Foreign Direct Investment) Company

Foreign Direct Investment (FDI) is defined as an investment with an investment threshold contributed by foreigner or foreign company amounting to at least KRW 100 million (USD 85,000 appxl.) and being 10% or more of the total amount.


Minimum KRW 100m Investment

*Per person

when there are 2+ investors

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Holding 10% + Voting Shares

*Either new or existing shares acquired


Benefits to be FDI company 


Guarantee of remittance to foreign countries:

Remittance of dividends and proceeds from the sale of the stock and shares owned by a foreign investor shall be guaranteed in accordance with the details of the report or permission at the time of such remittance.


National treatment:

Except as otherwise explicitly prescribed by law, foreign investors and foreign-invested companies shall be treated in the same manner as Korean Nationals or corporations.  

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Tax reductions and exemptions:

National taxes and local taxes may be reduced or exempted when engaging in business subject to tax reductions and exemptions under the Restriction of Special Taxation Act (businesses accompanying technologies for new growth engine industries, etc.)

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In the early stages of small foreign invested companies, can be excluded from the Korean labor law up to two years. Even if you don’t have sales revenue, you can still hire professionals.


D-8 visa (business investment):

D-8 visa issued to a foreigner who invests in a Korean corporation or company. D-8 visa holder is granted to use the exclusive immigration fast track service and no need to pay of processing fees ( issuance of alien registration card, permit for extension of the period of sojourn, permit to change status of sojourn, re-entry permit, etc.)

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​​Cash grants (when meeting certain requirements):

When the foreign investment ratio is not less than 30 percent, an investment in businesses accompanying technologies in new growth engine industries, a greenfield investment in advanced technology and products or parts manufacturing business, an investment with a large scale of job creation (50-300 jobs), or an investment that greatly contributes to the domestic economy will be reviewed by the Foreign Investment Committee and be awarded cash grants.


Industrial site support:

The land, factories, or other property owned by the State, local government, or public institution may be used, profited from, or sold to a foreign-invested company by a negotiated contract. When State-owned land is rented to a foreign-invested company, its rental charges may be reduced or exempted.

Deductions/Exemptions Applied to FDI

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Foreign tax credit:

Corporate tax paid to foreign tax authorities is deducted within a certain limit. This is to prevent double taxation on the same income by Korean and foreign tax authorities.corporate tax paid to foreign tax authorities is deducted within a certain limit. This is to prevent double taxation on the same income by Korean and foreign tax authorities.

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Tax reduction or exemption for small to medium start-up businesses:

For a small to medicum business incorporated for a manufacturing business (before Dec. 31, 2021) a certain percentage of corporate tax shall be reduced up to five years.

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Special tax credit for small medium enterprises:

Tax shall be reduced up to Dec. 31, 2022.


Tax credit:

Tax credit for R&D and human resources development expense

If you would like to get further advice for your business, feel free to contact us.

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