THE
FOREIGN INVESTMENT PROMOTION ACT
Investment Policy Division T:500-5092
CHAPTER I. GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act shall be to contribute
to the sound development of the national economy through effective
inducement of foreign direct investment (FDI) by providing support
and facilitation of foreign investment.
Article 2 (Definitions)
(1) The terms used in this Act shall have the
following meanings:
1. "Foreign National" shall mean an
individual possessing foreign nationality, a legal entity established
under the laws of a foreign nation (hereinafter referred to as "Foreign
Legal Entity") or an international economic cooperation organization
stipulated by Presidential Decree.
2. "The National of the Republic of Korea"
shall mean an individual possessing the nationality of the Republic
of Korea.
3. "Legal Entity of the Republic of Korea"
shall mean a legal entity established under the laws of the Republic
of Korea.
4. "Foreign Direct Investment" shall
mean one of the following items:
a. Activities of foreign nationals pursuant to
this Act conducted to establish lasting economic relations with
legal entities of the Republic of Korea (including legal entities
parts of organizations) or with enterprises run by nationals of
the Republic of Korea, which relationships include participation
in economic activities of said legal entities or enterprises, by
means of ownership of stocks or shares of said legal entities or
enterprises.
b. Loans with maturities of five years or more,
which are extended in accordance with Presidential Decree, to foreign
invested enterprises as defined by said foreign invested enterprises'
overseas parent companies or enterprises which have capital affiliations
with said parent companies, for purposes of exercising material
influence over the management of said foreign invested enterprises.
5. "Foreign Investors" shall mean foreign
nationals who acquire stocks or own shares pursuant to this Act.
6. "Foreign Invested Enterprises" shall
mean enterprises in which foreign investors have invested capital.
7. "Objects of Investment" shall mean
investments by foreign investors which are made for the purpose
of acquiring stocks or owning shares, and which fall under one of
the following items:
a. International Means of Payment pursuant to
Foreign Exchange Management Law, or Domestic Means of Payment stipulated
as such by the Working Rules
b. Capital goods
c. Income arising from stocks or shares acquired
pursuant to this Act
d. Intellectual property rights, technologies
corresponding to such rights, and rights pertaining to the uses
of such technologies
e. Properties distributed to foreign nationals
subsequent to liquidation of their branches or offices located in
the Republic of Korea, which distributions follow the closing of
said branches or offices, and subsequent reorganization of said
branches or offices as legal entities of the Republic of Korea
f. Loans specified in Item 4. b hereof, or repayments
of loans borrowed from foreign nations
g. Other domestic Means of Payment as determined
by Presidential Decree
8. "Capital Goods" shall mean equipment,
fixtures, tools, components, parts of machinery for the industry
facilities (including ships, vehicles and airplanes), and livestock,
breeds or seeds, trees, fish needed for development of agriculture,
forestry and fisheries, and other raw materials and reserve stocks,
which the Ministers of competent Ministries (Heads of State Administrative
Organizations in charge of projects concerned) agree to need at
the time of first trial operation of facilities concerned (including
pilot projects), as well as freight and insurance fees incurred
in taking in raw materials or reserve stocks, and establishing or
consulting know-how or services.
9. "Technology Inducement Contracts"
shall mean the inducement of technologies by nationals of the Republic
of Korea or by legal entities of the Republic of Korea from foreign
nationals, as in buying or purchasing rights to the usage of technological
intellectual property rights and the like, pursuant to contracts.
(2) If individuals possessing Republic of Korea
nationality are permanent residents of foreign countries, those
provisions of this Act which are applicable to foreign nationals
shall be applied.
Article 3 (Protection of Foreign Direct Investments)
(1) The right to remit dividend incomes arising
from stocks or shares acquired by foreign investors, the proceeds
from the sales of said stocks or shares, the principal amounts,
interest and fees received pursuant to loan contracts or public
loan agreements, and the prices paid pursuant to technology inducement
contracts shall be guaranteed to foreign investors in accordance
with the content of authorizations, accepted notices, or agreements
as of such times such remittances are to be made.
(2) Unless the law specifies otherwise, foreign
investors and foreign invested enterprises shall be treated as nationals,
or legal entities, of the Republic of Korea with respect to their
businesses.
(3) Unless any law specifies otherwise, provisions
of the laws concerning tax reductions or exemptions which are applicable
to nationals or legal entities of the Republic of Korea shall equally
be applicable to foreign investors, foreign invested enterprises,
lenders of such loans as specified in Article 2, Paragraph 1, Item
4. b, and to persons who supply technologies pursuant to the provisions
of Article 25.
Article 4 (Liberalization of Foreign Investments)
(1) Unless this Act or any other concerned regulations
specify otherwise, foreign nationals shall be free from all restrictions
in performing foreign investment activities within the Republic
of Korea.
(2) No restrictions shall apply to foreign nationals
in the course of their foreign investment activities within the
Republic of Korea, except for the following items provided for in
this Act.
1. In cases where the sustenance of national security
and civil order is threatened.
2. In cases where national sanitation and environmental
preservation damages, or social morals and customs are threatened.
3. In cases where the laws of the Republic of
Korea are violated.
(3) In accordance with Paragraph 2, Item 1, industries
closed to foreign direct investment shall be stipulated by Presidential
Decree.
(4) In cases where the heads of any affiliated
administrative institutions restrict foreign direct investments
beyond this Act, in accordance with presidential decisions, the
content of said restrictions shall be reported to the Minister of
Finance and Economy. The Minister of Finance and Economy, pursuant
to Presidential Decree, shall compile and publicly announce such
restriction content every year.
CHAPTER II. FOREIGN DIRECT INVESTMENT PROCEDURES
Article 5 (Foreign Investments through Acquisition
of Newly Issued Stock, etc.)
(1) If foreign investors wish to acquire newly
issued stock of enterprises owned by nationals of the Republic of
Korea, or of legal entities of the Republic of Korea, in the form
of foreign direct investments, by Decree of the Ministry of Finance
and Economy, said foreign investors shall submit prior notice to
the Minister of Finance and Economy. The content of said notice
shall include the amounts of said foreign direct investments and
their ratios (meaning the percentages of the concerned foreign invested
enterprise stocks acquired by said foreign investors). Notices shall
also be required if changes in matters stipulated by Presidential
Decree are sought.
(2) Where notices are given pursuant to Paragraph
1, the Minister of Finance and Economy shall determine whether to
accept said notices, and shall reply to the persons submitting such
notices within the time periods stipulated by Presidential Decree.
Article 6 (Foreign Direct Investment Procedures
for the Acquisition of Outstanding Stock, etc.)
(1) Foreign nationals (in this article, including
Especially Interested Persons as stipulated by Presidential Decree)
seeking to acquire outstanding stocks or shares (hereinafter referred
to as Out-standing Stock, etc.) of enterprises run by nationals
of or legal entities of the Republic of Korea, by the Ministry of
Finance and Economy Decree, shall submit prior notices to the Minister
of Finance and Economy. The content of said notices shall include
the amounts of foreign direct investments concerned, and their ratios.
Notices shall also be required if changes in matters stipulated
by Presidential Decree are sought.
(2) Where notices are given pursuant to Paragraph
1, the Minister of Finance and Economy shall determine whether to
accept said notices, and shall reply to the persons submitting said
notices within the time periods stipulated by Presidential Decree.
(3) Foreign nationals seeking to acquire outstanding
stocks, etc., of enterprises of the defense industry stipulated
by Presidential Decree shall, despite the provisions of Paragraph
1, must obtain prior approval from the Minister of Finance and Economy,
as provided for by Decree of the Ministry of Finance and Economy.
Authorizations shall also be required if changes in the amounts
of foreign investments and their ratios and other matters stipulated
by Presidential Decree are sought.
(4) Where notices are given pursuant to Paragraph
3, the Minister of Finance and Economy shall determine whether to
accept said notices, and notify the outcomes within the time periods
stipulated by Presidential Decree
(5) In deciding whether to grant authorizations
in authorization cases, pursuant to the regulations in Paragraph
4, the Minister of Finance and Economy shall consult with Competent
Ministers prior to making his decisions.
(6) In deciding to grant authorizations in authorization
cases, pursuant to the regulations in Paragraph 4, the Minister
of Finance and Economy may attach such conditions when acknowledged
necessary.
(7) Persons who acquire outstanding stocks, etc.,
in violation of the regulations in Paragraph 3 and Paragraph 8,
may not exercise voting rights with respect to said outstanding
stocks, etc. The Minister of Finance and Economy may issue orders
to the persons who acquire outstanding stocks, etc., in violation
of the regulations in Paragraph 3 and Paragraph 8, to sell said
outstanding stocks, etc., in a manner stipulated by Presidential
Decree.
(8) Necessary matters in acquisition of outstanding
stocks, etc. by foreign investors, other than regulations in Paragraph
1 through Paragraph 7, shall be stipulated by Presidential Decree.
Article 7 (Acquisition of Stock through Mergers)
(1) Foreign investors shall submit notices to
the Minister of Finance and Economy upon acquisition of stocks or
shares if said acquisition fall under one of the following items:
1. Where foreign investors acquire stocks of foreign
invested enterprises concerned, which stock is issued following
transfer of reserved surpluses or revaluation reserves into the
capitalization of said foreign invested enterprises.
2. Where foreign investors acquire stock or shares
of legal entities that survive, or are newly organized following
mergers between foreign invested enterprises and other enterprises,
based on rights arising from ownership of the stock or shares of
said foreign invested enterprises.
3. Where foreign nationals acquire the stocks
or shares of foreign invested enterprises, which is registered pursuant
to the regulations outlined in Paragraph 21, from nationals or legal
entities of the Republic of Korea by means of purchase, inheritance,
testation, or gift.
4. Where returns of profits acquired from stocks
or shares acquired pursuant to this Act are used to acquire additional
stocks or shares.
5. Where foreign investors convert convertible
bonds, or bonds with warrants, into stocks or shares.
(2) In cases where notices, pursuant to the regulations
contained in Paragraph 1 exist, the Minister of Finance and Economy
shall promptly reply confirming receipt of said notices to the persons
who submitted said notices.
Article 8 (Foreign Direct Investments in the form
of Long-Term Loans)
(1) If foreign investors wish to make foreign
direct investments pursuant to the regulations in Article 2, Paragraph
4, by Decree of the Ministry of Finance and Economy, said foreign
investors shall submit prior notices to the Minister of Finance
and Economy. The content of said notices shall include the amounts
of foreign direct investments concerned, and their ratios (meaning
the percentages of the concerned foreign invested enterprise stock
acquired by said foreign investors). Notices shall also be required
if changes in matters stipulated by Presidential Decree are sought.
(2) In cases where notices are submitted pursuant
to Paragraph 1 hereof, the Minister of Finance and Economy shall
promptly reply confirming receipt of said notices to applicants.
CHAPTER III. SUPPORT FOR FOREIGN DIRECT INVESTMENT
Article 9 (Reduction or Exemption of Corporate
Taxes, etc.)
(1) Any of the following foreign direct investments
relating to the operation of industries falling under criteria stipulated
by Presidential Decree, pursuant to the regulations contained in
Paragraph 2 through Paragraph 5, shall receive tax reductions in,
or exemptions from, corporate, income, acquisition, registration,
property and aggregate land taxes.
1. Industries supporting service businesses, or
businesses bringing in advanced technologies that raise the international
competitiveness of domestic industries.
2. Foreign invested enterprises, pursuant to the
regulations contained in Article 18 directed towards the operation
of industries, located in Foreign Investment Zones.
3. Businesses stipulated by Presidential Decree,
which are deemed to require tax reductions or exemptions in order
to attract foreign direct investments.
(2) With respect to corporate or income taxes
levied on foreign invested enterprises, tax reductions or exemptions
shall be applied only to those portions of incomes which are derived
from those business activities subject to the tax reduction or exemption
provisions provided for in Paragraph 1. The amounts of such tax
reductions or exemptions for those taxable years ending during the
first seven year periods starting from the taxable years during
which the foreign invested enterprises have generated incomes for
the first time from said business activities (or from those taxable
years during which the fifth anniversary of the business commencement
dates fall, if said enterprises cannot generate any incomes until
such taxable years) shall equal the full amounts calculated by multiplying
the total corporate tax or income tax equivalents (the amounts calculated
by multiplying the total calculated tax amounts by the ratios which
the incomes generated from the business activities enumerated in
Paragraph 1 bear to total taxable incomes) for the year by the foreign
direct investment ratios (hereinafter, in this Paragraph, referred
to as "the Tax Amounts Subject to Reductions or Exemptions").
For the taxable years ending during the period of three years thereafter,
tax amounts equivalent to fifty percent of the Tax Amounts Subject
to Reductions or Exemptions shall be reduced or exempted.
(3) With respect to corporate and income taxes
on dividend incomes derived from ownership of stocks or shares of
foreign invested enterprises, the owners of such stocks or shares
shall, in proportion to the percentages of incomes derived from
businesses stipulated in the regulations specified in Paragraph
1 out of total incomes of each taxable year, enjoy tax reductions
or exemptions. The full amounts of corporate or income taxes shall
be reduced or exempted for the periods during which the full amounts
of the Tax Amounts Subject to Reductions or Exemptions are reduced
or exempted under the provisions of Paragraph 2. Fifty percent of
corporate or income taxes shall be reduced or exempted for the periods
during which fifty percent of the Tax Amounts Subject to Reductions
or Exemptions is reduced or exempted under the provisions of Paragraph
2.
(4) With respect to acquisition, registration,
property and aggregate land taxes on properties acquired and maintained
by foreign invested enterprises for the purposes of running businesses,
the taxable amounts subject to reductions or exemptions shall be
reduced, or certain amounts shall be exempted from their tax bases,
as in the following cases. However, when local governments prolong
the period of tax reductions or exemptions by up to fifteen years,
or increase the ratios of tax reductions or exemptions during prolonged
periods, pursuant to municipal ordinances according to the regulations
specified in Article 9 of the Local Tax Law, tax reductions or exemptions
shall be determined by said periods and ratios, notwithstanding
the regulations contained in Items 1 and 2.
1. With respect to acquisition, registration or
property taxes, the amounts of tax reductions or exemptions shall
equal the amounts derived by multiplying the values of the properties
concerned and the foreign direct investment ratios (hereinafter,
"Taxable Amounts Subject to Reductions or Exemptions")
for the first five years from the initial dates of operation and,
thereafter, 50 percent of the taxable amounts subject to reductions
or exemptions for up to the next three years.
2. With respect to aggregate land taxes, tax deductions
shall equal the amounts (hereinafter the "Deductible Amounts")
derived by multiplying the tax bases applicable to the properties
concerned and the foreign direct investment ratios for five years
following the initial dates of operation. Thereafter, 50 percent
of the deductible amounts shall be deducted from the tax bases for
the next three years.
(5) In the event when foreign invested enterprises
acquire and possess properties before their business commencement
dates for purposes of carrying out the business activities enumerated
in Paragraph 1, notwithstanding the provisions of Paragraph 4, said
enterprises shall enjoy the following reductions of, or exemptions
from, taxes imposed on their properties, such as acquisition, registration,
property and aggregate land taxes, or shall have the following deductions
of certain amounts from their taxable bases. However, in the event
that local governments, pursuant to municipal ordinances promulgated
under the provisions of Article 9 of the Local Tax Law, extend the
periods of tax reductions or exemptions or tax deductions by up
to fifteen years, or increase the reduction or exemption ratios,
or the deduction ratios during extended periods, notwithstanding
the provisions of Paragraphs 2 and 3, such periods and ratios shall
apply.
1. In the case of acquisition and registration
taxes on properties acquired after the dates when decisions to reduce
or exempt taxes are made, pursuant to the regulations contained
in Paragraph 8, the entire amounts subject to tax reductions or
exemptions shall be exempted.
2. In the case of aggregate land taxes, the entire
deductible amounts are for five years from the dates of acquisition
of the properties concerned and 50 percent of the deductible amounts
are for the three years thereafter.
3. In the case of aggregate land taxes, the entire
deductible amounts are for five years from the dates of acquisition
of the properties concerned and 50 percent of the deductible amounts
are for the three years thereafter.
(6) Where foreign investors or a foreign invested
enterprises seek to obtain tax reductions or exemptions pursuant
to the regulations outlined in Paragraph 2 through Paragraph 5,
said foreign investors or foreign invested enterprises shall apply
to the Minister of Finance and Economy for tax reductions or exemptions
by the last day of the fiscal years in which the initial operations
fall (in cases of capital increases, within two years from the acceptance
notices of foreign direct investments).
(7) Before foreign investors or foreign invested
enterprises submit notices pursuant to the regulations outlined
in Article 5, Paragraph 1, replies may be sought from the Minister
of Finance and Economy to confirm whether such tax reductions or
exemptions shall be granted.
(8) Where the Minister of Finance and Economy
has received applications for tax reductions or exemptions, pursuant
to the regulations outlined in Paragraph 6, the Minister of Finance
and Economy shall consult with competent Ministers and determine
on whether such tax reductions or exemptions should be granted,
and a reply concerning the outcomes of such determinations to the
persons who submitted said notices. However, with respect to tax
reductions or exemptions in the cases of acquisition, registration,
property, or aggregate land taxes, stipulated in the regulations
outlined in Paragraph 4 through Paragraph 5, the Minister of Finance
and Economy shall consult with the Heads of the Local Governments
concerned.
(9) With respect to foreign direct investments
implemented pursuant to the regulations outlined in Article 6, Paragraph
2 through Paragraph 5 shall not apply.
Article 10 (Exemptions from Customs Duties, etc.)
(1) If capital goods stipulated in the following
items and purported to be used in business operations mentioned
under Article 9, Paragraph 1 are brought in conformity with the
content of notices accepted pursuant to Presidential Decree contained
in the regulations of Article 5, Paragraph 1, then customs duties,
special excise taxes, and value added taxes shall be reduced or
exempted.
1. Capital goods brought in by foreign invested
enterprises with International Means of Payment or Domestic Means
of Payment, which foreign investors have invested in.
2. Capital goods brought as objects of investment
by foreign investors.
(2) Where foreign investors or foreign invested
enterprises seek to receive tax exemptions from customs duties,
special excise taxes, and value added taxes pursuant to the regulations
outlined in Paragraph 1, said foreign investors or the foreign invested
enterprises shall submit applications for tax exemptions pursuant
to Decree of the Ministry of Finance and Economy.
(3) The regulations contained in Paragraph 1 shall
not apply in cases of foreign direct investments implemented pursuant
to the regulations contained in Article 6.
Article 11 (Tax Reductions or Exemptions in cases
of Capital Increases)
(1) Where foreign invested enterprises increase
their capitalization, the regulations outlined in Article 9 and
Article 10 shall apply to the increased amount of capitalization
in determining the amounts of tax reductions or exemptions. However,
where applications for tax reductions or exemptions covered by Presidential
Decree are made, consultations with competent Ministers and Heads
of Local Governments pursuant to the regulations specified are not
required.
(2) In cases of stocks acquired by foreign investors
as a result of bringing reserve or revaluation surpluses into capitalization,
pursuant to Article 7, Paragraph 1, Item 1, taxes shall be reduced
or exempted in accordance with the remaining periods of tax reductions
or exemptions and the reduction/exemption ratios of the remaining
periods based on tax reductions or exemptions for the stock triggering
this provision.
(3) The initial dates of business operations,
for the purposes of Paragraph 1, shall be those dates on which registrations
noting the changes occurred are filed regarding the capitalization
increases in question.
Article 12 (Collection of Reduced or Exempted
Taxes)
(1) For cases falling under one of the following
items, Directors of District Tax Offices shall, in accordance with
Presidential Decree, collect granted corporate or income tax reductions
or exemptions pursuant to the regulations specified in Article 9,
Paragraph 2.
1. In the event registrations are canceled pursuant
to the regulations contained in Article 21, Paragraph 2.
2. In the event tax reduction or exemption criteria,
pursuant to the regulations contained in Article 9, Paragraph 1,
do not apply.
3. In the event content or conditions of accepted
notices are not satisfied, pursuant to the regulations contained
in Article 28, Paragraph 4.
4. In the event foreign investors transfer stocks
or shares held, pursuant to this Act to nationals, or legal entities,
of the Republic of Korea.
5. In the event foreign invested enterprise closes
down their businesses.
(2) For cases falling under one of the following
items, Directors of District Customs Offices or directors of District
Tax Offices shall, pursuant to Presidential Decree, collect granted
customs duty, special excise tax, and value added tax reductions
and exemptions pursuant to Article 10.
1. In the event registrations are canceled, pursuant
to the regulations contained in Article 21, Paragraph 2.
2. In the event foreign capital has been used
or disposed of for purposes other than the purposes stipulated in
accepted notices.
3. In the event foreign investors transfer stocks
or shares held, pursuant to this Act to nationals, or legal entities,
of the Republic of Korea.
4. In the event foreign invested enterprises close
down their businesses.
(3) If cases falling under one of the following
items, Heads of Local Governments shall, pursuant to Article 9,
Paragraph 4 and Paragraph 5, and in accordance with Presidential
Decree, collect acquisition, registration, property, and aggregate
land taxes which were reduced or exempted. In such cases, tax amounts
equivalent to the differences in the ratios shall be collected.
1. In the event the ratios of the numbers of stocks
or shares held by foreign investors to the total numbers of stock
or shares are less than the ratios prior to tax reductions or exemptions,
pursuant to the regulations contained in Article 9, Paragraph 5.
2. In the event foreign investors transfer stocks
or shares held pursuant to this Act to nationals, or legal entities,
of the Republic of Korea pursuant to tax reductions or exemptions
granted in accordance with the regulations contained in Article
9, Paragraph 4.
3. In the event registrations are canceled pursuant
to the regulations contained in Article 21, Paragraph 2.
4. In the event foreign invested enterprises close
down their businesses.
(4) The amount of taxes to be collected, pursuant
to Paragraph 1 through Paragraph 3 shall be stipulated by Presidential
Decree.
(5) If any of the following items are satisfied,
pursuant to Presidential Decree, reduced or exempted taxes need
not be collected, notwithstanding the regulations specified in Paragraph
1 through Paragraph 3.
1. In cases where the registrations of foreign
invested enterprise are canceled following dissolution of said foreign
invested enterprises after mergers.
2. In cases where capital goods brought in and
used subsequent to tax reductions or exemptions, such as related
to customs duties, granted pursuant to the regulations contained
in Article 10, are used or disposed of for purposes different from
those originally specified, with the approval of the Minister of
Finance and Economy, when said capital goods cannot be used as originally
planned due to natural calamities, or some other inevitable events,
or to changes in economic conditions, as well as to technological
advancements.
3. In the event the stocks or shares of foreign
invested enterprises are transferred to nationals, or legal entities,
of the Republic of Korea for purposes of going public with said
foreign invested enterprises, pursuant to the Securities Exchange
Act.
4. Cases stipulated by Presidential Decree, where
tax reduction or exemption objectives other than those embodied
in Item 1 through Item 3 are deemed to have been achieved.
Article 13 (Leasing and Selling of National and
Public Assets)
(1) The Minister of Finance and Economy, Head
of the Office of National Property Administration, or Heads of Local
Governments, shall, with respect to national and local properties,
lands and factories, and public assets (hereinafter referred to
as "Lands, etc."), permit foreign invested enterprises
to use, earn profits from, or lease (hereinafter referred to as
"Lease") said Lands, etc. via free contracts, notwithstanding
the National Property Act and the Local Property Act.
(2) In the case of leasing of Land, etc. owned
by Local Governments, pursuant to the regulations contained in Paragraph
1, Lease periods can be up to fifty years, notwithstanding the regulations
contained in Article 27, Paragraph 1 and Article 36, Paragraph 1,
National Property Act, and Article 82, Paragraph 2 and Article 83,
Paragraph 2, Local Property Act.
(3) Where lands owned by the Korean government
or Local Governments are leased pursuant to Paragraph 1, notwithstanding
the regulations contained in Article 24, Paragraph 3, National Property
Act and Article 82, Paragraph 2, and Article 83, Paragraph 2, Local
Property Act, fixtures such as factories may be built on said lands.
In such case, Lease agreements shall require donation of the said
fixtures upon return of the leased lands, etc., to the state, in
their original condition, with due consideration given the types
of fixtures concerned.
(4) Notwithstanding the regulations contained
in Article 25, Paragraph 1 and Article 38, National Property Act,
and Article 82, Paragraph 2 and Article 83, Paragraph 2, Local Property
Act, the use fees or rents charged on the Lands, etc., leased pursuant
to Paragraph 1 shall be determined by Presidential Decree and, where
necessary, shall be paid in foreign currencies.
(5) Notwithstanding the regulations contained
in Article 40, Paragraph 1, National Property Act and Article 83,
Paragraph 2, Local Property Act, in the sale of Lands, etc., to
foreign invested enterprises, it is determined by Presidential Decree
that, if payment of one time purchase prices for the buyers is difficult,
the payment of said one time purchase prices may be delayed, or
be paid in installments.
(6) Notwithstanding the regulations contained
in Article 36, Act on Industry Placement and Factory Establishment,
and Article 38, Act on Industrial Location and Development, where
government Lands, etc., which fall under one of the following items,
are Leased to foreign invested enterprises operating businesses
stipulated by Presidential Decree, the Minister of Finance and Economy,
or the Office of National Property Administration shall, in consultation
with the Minister of Commerce, Industry, and Energy, reduce or exempt
usage fees or rents for such Lands, etc., in amounts as stipulated
by Presidential Decree.
1. Lands, etc., in Foreign Investment Zones classified
as such by the regulations contained in Article 18.
2. Lands, etc., owned by the government in industrial
parks for foreign invested enterprises classified as such by Article
35-3, Paragraph 1, Act on Industry Placement and Factory Establishment.
3. Lands, etc., in national industrial parks classified
as such by the regulations contained in Article 6, Act on Industrial
Location and Development.
(7) Notwithstanding the regulations contained
in Article 82, Paragraph 2, and Article 83, Paragraph 2, Local Property
Act, Heads of Local Governments in cases of leasing Local Government
Lands, etc., to foreign invested enterprises, determined by Presidential
Decree, may reduce or exempt the usage fees or rents chargeable
for said Lands, etc.
(8) Notwithstanding the regulations specified
in Article 38, Act on Industrial Location and Development, in cases
of reducing or exempting usage fees or rents chargeable for Lands,
etc., pursuant to the provisions of Article 2, Item 5, Industrial
Location and Development Act, in industrial parks to foreign invested
enterprises, pursuant to the regulations contained in Paragraph
6 and Paragraph 7, lease period can be up to fifty years.
(9) The leasing periods specified in Paragraphs
2 and 8 may be renewed. In cases of renewal, the lease period for
each renewal shall not exceed the period stipulated in Paragraphs
2 and 8.
Article 14 (Support for Local Government towards
Attracting Foreign Direct Investments)
(1) The state shall exert its best efforts to
assist when local governments request funds to establish foreign
investment zones, loans to lend to foreign invested enterprises
to purchase lands, reductions of rent for usage of lands, etc.,
to discount land sale prices (including cases where local governments
support public agencies stipulated by Presidential Decree) by providing
subsidies for the differences when the latter lease the lands they
own at reduced rents or sell them below cost prices to foreign invested
enterprises, to grant subsidies such as for education and training
and other purposes, and request funds to attract other foreign investment
projects.
(2) The criteria and procedures governing granting
of support state funds to local governments under Paragraph 1 shall
be determined by the Foreign Direct Investment Committee under Article
27, stipulated by Presidential Decree. In such cases, the subsidy
criteria shall take into account local government efforts to induce
foreign investments, records of such inducements, and other relevant
factors.
(3) The state shall estimate the amounts of subsidy
funds listed under Paragraph 1 in advance, and include them in its
budgets.
(4) Local governments, if necessary to promote
inducement of foreign investments, may pay as provided for by their
regulation employment subsidies under Presidential Decree to foreign
invested enterprises.
Article 15 (Establishment of Foreign Direct Investment
Service Center)
(1) In order to provide administrative support,
including handling of civil affairs and petitions, guidance, counseling,
and grievances, in a comprehensive fashion, an administrative support
center (hereinafter the "Korea Investment Service Center")
will be established in the Korea Trade-Investment Promotion Agency.
(2) The Head of the Korea Trade-Investment Promotion
Agency may, in order to increase performance efficiency respecting
tasks related to foreign direct investments and of foreign invested
enterprises, request legal entities and groups (hereinafter, "Related
Institutions") to station public officials and Related Institution
officials for duty at the Korea Investment Service Center. When
requesting the stationing of civil servants, competent Ministers
shall be consulted.
(3) The Korea Investment Service Center will be
primarily maintained by employees from the Korea Trade-investment
Promotion Agency with a great deal of experience in foreign direct
investments. In accordance with the regulations contained in Paragraph
2, public officials and Related Institution officials stationed
to the Korea Investment Service Center (hereinafter, "stationed
officials") will support the activities of the Korea Investment
Service Center.
(4) In accordance with the regulations outlined
in Paragraph 2, Heads of related administrative institutions and
Related Institutions, in the absence of special countervailing reasons,
shall select and station appropriate individuals. When terminating
the stationing of officials during their stationing periods, the
Head of the Korea Trade-Investment Promotion Agency shall be consulted.
(5) In accordance with the regulations outlined
in Paragraph 2, Heads of stationing-related administrative institutions
and Related Institutions, vis-a-vis the stationing of public officials
and other officials shall not discriminate in relation to promotions,
transfers, rewards and welfare benefits.
(6) The Head of the Korea Trade-Investment Promotion
Agency, in accordance with the regulations outlined in Paragraph
1, may, in order to increase performance efficiency respecting tasks
relating to foreign direct investments and foreign invested enterprises,
request support from related administrative institutions and Related
Institutions when needed. The Heads of institutions receiving requests
for support shall comply with such requests, in the absence of special
countervailing reasons.
(7) The Head of the Korea Trade-Investment Promotion
Agency, in order to address foreign investor's grievances and difficulties,
shall, in accordance with Presidential Decree, establish an Ombudsman
institution at the Korea Investment Service Center.
(8) Matters necessary for the establishment and
operation of the Korea Investment Service Center shall be stipulated
by Presidential Decree.
Article 16 (City and Provincial Foreign Direct
Investment Service Centers)
(1) City and provincial foreign direct investment
service centers will be established to expedite civil affairs in
relation to foreign direct investments, create a Related Institutions
cooperation system, and provide effective foreign direct investment
support with respect to permissions, approvals, licenses, sanctions,
designations, notices, recommendations, and agreements (hereinafter
"Permission, etc.") relating to foreign direct investments.
(2) Foreign Direct Investment Service Centers
shall provide full support when support for civil affairs related
to foreign direct investments is requested by Related Institutions
and the Korea Investment Service Center.
(3) Matters necessary for the establishment and
operation of Investment Promotion Centers, other than those stipulated
in Paragraph 1 and Paragraph 2, shall be stipulated by Presidential
Decree.
Article 17 (Special Cases Concerning Processing
of the Civil Affairs of Foreign Invested Enterprises)
(1) Foreign investors or foreign invested enterprises,
if granted permissions outlined in the left-hand column of Attachment
Table 1, shall be deemed to have obtained, permission, etc., outlined
in the right-hand column of said Attachment Table.
(2) When civil affairs related to foreign direct
investments needed by foreign investors or foreign invested enterprises
fall under the category of civil affairs specified by Presidential
Decree (hereinafter "Immediate Settlement Civil Affairs"),
stationed officials may dispose of said affairs themselves. In such
cases, the heads of the related institutions to which the stationed
officials are affiliated shall delegate such authority to their
stationed officials.
(3) Foreign investors or foreign invested enterprises
may entrust the Korea Investment Service Center with the preparation
and submission of their civil application documents, and the Head
of the Korea Investment Service Center shall transfer civil affairs
in relation to permissions, etc., stated in Attachment Table 1 (hereinafter
"Comprehensive Civil Affairs"), and individual civil affairs
in relation to foreign direct investments stated in Attachment Table
2 (hereinafter, "Regular Civil Affairs") to the heads
of administrative institutions in charge of civil affairs (in cases
of Package Civil Affairs, the heads of institutions in charge of
civil affairs related to Permissions, etc., stated in the left-hand
column of Attachment Table 1), and shall notify receipts and transfers
of civil application documents to the officials responsible for
foreign direct investment promotion in concerned jurisdiction.
(4) The Heads of institutions in charge of civil
affairs, upon receiving civil application documents in accordance
with the regulations outlined in Paragraph 3, or from foreign investor
or foreign invested enterprises, shall discuss said documents with
the heads of concerned institutions without delay; and the Heads
of said related institutions shall submit their opinions within
the periods set for completing civil affairs as stipulated in Paragraph
5. In such cases, the Heads of the related institutions shall, if
not accepting civil affairs applications, specify the reasons for
their disagreements, and the Heads of the related institutions shall
be regarded as having no objections if they do not provide their
opinion within the periods set for completing civil affairs as stipulated
in Paragraph 5.
(5) The Heads of institutions in charge of civil
affairs, or stationed officials, shall complete Package Civil Affairs
(in cases of separately receipts of civil affairs related to permissions,
etc., stated in the right-hand column of Attachment Table 1, these
civil affairs), Individual Civil Affairs and Self Completion Civil
Affairs within the periods set by Presidential Decree. If notices
of approval or decline are not issued within the set periods, the
civil affairs applications concerned shall be regarded as being
approved on the day following expiration day of the periods for
completing said civil affairs. In such cases, notices of approval
or decline, with accompanying reasons, if issued within set periods,
shall be made in written form and sent to the officials in charge
of foreign investment promotion and the concerned foreign investors
or foreign invested enterprises, as stipulated by Presidential Decree.
(6) In cases where permission or any other decisions
have been made, or are regarded as having been made, in accordance
with the provisions of Paragraph 5, concerned heads of the institutions
in charge of civil affairs and stationed officials shall, upon receiving
applications from foreign investors or foreign invested enterprises,
immediately issue and send documents verifying said approvals, etc.,
to said foreign investors or foreign invested enterprises.
(7) The heads of institutions in charge of civil
affairs and stationed officials shall approve, etc., as requested
in the first place within the periods set by Presidential Decree,
in cases where foreign investors who, or foreign invested enterprises
which, have received refusal notices, pursuant to the latter part
of Paragraph 5, submits documents evidencing that they have resolved
the problems leading to receiving refusal notices and have satisfied
the approval criteria, etc., stipulated by the related laws. In
such cases, refusals shall not be made on grounds, which were not
raised in turning down the original applications.
(8) Regulations of Paragraph 7 apply discussions
specified in Paragraph 4, mutatis mutandis.
(9) In cases where foreign investors or foreign
invested enterprises want to receive permissions for package civil
affairs, individual completion civil affairs and self completion
civil affairs, pursuant to the provisions of Paragraphs 2 through
8, said investors or enterprises shall submit applications stipulated
by Decree of the Minister of Finance and Economy, notwithstanding
countervailing provisions set forth in other laws and ordinances.
(10) The heads of administrative institutions
in charge of civil affairs may grant permissions or hand down other
decisions even in cases where some requirements, such as accompanying
documents, are not completely satisfied in relation to package civil
affairs permissions or other decisions on the condition that such
requirements shall be satisfied later.
(11) In cases of civil affairs relating to Permissions,
etc., which are required by other laws and regulations vis-a-vis
foreign invested enterprises, in order to fulfill purposes pursuant
to relevant laws and ordinances governing the period between foreign
investment reports of and initiation of operations but are not listed
in each of the following items, such laws and regulations shall
not apply to foreign invested business activities carried out by
foreign investors or foreign invested enterprises.
1. Comprehensive civil affairs
2. Regular civil affairs
3. Immediate settlement civil affairs
4. Civil affairs related to permissions or other
decisions pursuant to the regulations of this Act, other than those
listed in Items 1 through 3 above
(12) In cases where foreign invested enterprises
divert or change the characteristics of agricultural lands or preserved
forest belts for purposes of establishing factories, said foreign
invested enterprises may enjoy levy exemptions or reductions for
diverting land usage under the provisions of Article 45, Paragraph
2, Special Case Laws for Agriculture and Fisheries Development or
Article 20, Paragraph 3, Forest Law. The scope of the foreign invested
enterprises qualified for such exemptions or reductions, and the
ratios thereof, shall be determined by Presidential Decree.
(13) All necessary matters for completing civil
affairs related to foreign direct investments, other than those
specified in Paragraph 1 through Paragraph 10, shall be stipulated
by Presidential Decree.
CHAPTER IV. FOREIGN INVESTMENT ZONES
Article 18 (Designation and Development of Foreign
Investment Zones)
(1) In case it is necessary for inducing foreign
investments meeting the criteria determined by Presidential Decree,
city mayors or provincial governors (hereinafter referred to as
a "mayors" or "provincial governors") can select
areas desired by foreign investors for investments as foreign investments
zones (hereinafter referred to as "foreign investment zones")
through examination by the Commission on Foreign Direct Investment
Policy under Article 27. In order to develop foreign investment
zones into regional industrial parks, under Article 7, Industrial
Location and Development Act, (hereinafter referred to as "regional
industrial parks"), development plan shall be drawn up.
(2) Mayors or provincial governors shall issue
public notices for the following items, when selecting foreign investment
zones in accordance with the provisions contained in Article 1:
1. Foreign investment zone titles, locations and
areas
2. Development or management methodology
3. Matters of public notices under Article 7,
Paragraph 2, Industrial Location and Development Act (only if corresponding
foreign investment zones are to be developed as regional industrial
parks)
4. Other matters are determined by Presidential
Decree
(3) Foreign investment zones shall be developed
and managed by mayors or provincial governors who have jurisdiction
over said zones, in accordance with Presidential Decree. However,
if national industrial parks are partially or totally selected as
foreign investment zones, the existing administrative agencies that
had been performing the management tasks will be placed in charge
of the management of the latter.
(4) If areas selected as foreign investment zones
need to add new sites in order to establish factories and the like,
said foreign investment zones may be developed into regional industrial
parks.
(5) If foreign investment zones are developed
into regional industrial parks in accordance with the provisions
of Paragraph 4, the foreign investment zones specified under Paragraph
1 shall be considered as being selected as regional industrial parks.
In such cases, the development plan, pursuant to the latter part
of Paragraph 1, shall be considered as those in accordance with
the provisions of Article 7, Paragraph 2, Industrial Location and
Development Act, and public notices pursuant to Paragraph 2 shall
be considered as those in accordance with the provisions of Article
7, Paragraph 2, Industrial Location and Development Act.
(6) If selections and public notices, pursuant
to the provisions of Paragraphs 1 and 2, are given in developing
foreign investment zones into regional industrial parks in accordance
with the provisions of Paragraph 4, "zones selected and notified
as industrial parks," Article 12, Paragraph 1, Industrial Location
and Development Act, shall be considered as "zones selected
and notified as foreign investment zones;" and "national
industrial parks or regional industrial parks selected and notified"
in accordance with Article 22 Paragraph 2 of the same Act, shall
be considered as "foreign investment zones selected and notified."
(7) If parts or all of national industrial parks
or regional industrial parks of which developments are already completed,
are selected as foreign investment zones, and the provisions of
Article 19, Paragraph 1, shall not apply.
(8) Process and method matters required in selecting
foreign investment zones shall be determined by Presidential Decree.
Article 19 (Support for Foreign Investment Zones)
(1) For allocation of responsibility for expenses
required in development of foreign investment zones and support
for the wide variety of facilities, including harbors, roads, water
facilities, railroads, communication and electrical installations,
etc., required for smooth promotion of said foreign investment zones,
the provisions of Articles 28 and 29, Industrial Location and Development
Act, shall apply.
(2) For construction of facilities etc., in foreign
investment zones, transportation charge increase levies, pursuant
to the provisions of Article 21, Urban Traffic Readjustment Promotion
Law, shall be exempted.
(3) Matters concerning support for medical facilities,
educational facilities and housing, etc., installed in foreign investment
zones shall be determined by Foreign Direct Investment Committees,
under Article 27.
Article 20 (Special Cases Concerning Other Laws)
(1) In cases where lands are divided within foreign
investment zones, the following laws shall not apply:
1. Article 21, Paragraph 16, National Land Utility
Control Law
2. Article 4, Paragraph 2, Item 3, Urban Planning
Law
3. Article 15, Paragraph 1, Item 3, Balanced Land
Development and Promotion of Small and Medium Local Enterprises
Act
4. Article 20, Paragraph 2, Forestry Law
5. Article 5, Paragraph 1, Item 4, Special Management
Law for Construction of Provisional Administrative Capital
(2) Foreign invested enterprises located in foreign
investment zones shall be deemed as having issued trade or trade
agency notices pursuant to the provisions of Article 10, Act on
Foreign Trade Business and, for foreign invested enterprises, restrictions
on exports or imports may be relieved as determined by the Minister
of Commerce, Industry and Energy notwithstanding the provisions
of Article 14, Foreign Trade Act.
(3) The following laws do not apply to foreign
invested enterprises located in foreign investment zones:
1. Article 4 and Article 12, Paragraphs 2 and
3, Protection of Business Areas of Small and Medium Enterprises
and Promotion of Cooperation between Enterprises Act
2. Article 31, Paragraph 2, Honorable Treatment
of Men of National Merit Act
CHAPTER V. MANAGEMENT OF FOREIGN DIRECT INVESTMENTS
Article 21 (Ex-Post Facto Management of Foreign
Direct Investments)
(1) Foreign investors shall register as foreign
invested enterprises in accordance with Presidential Decree regulations
when any of the following items applies (including cases when any
of the following items applies due to increases in capitalization):
1. In cases where payment of investment objects
has been completed.
2. In cases of acquisition of outstanding stocks,
etc. (refers to settlements of purchase
payments for outstanding stock acquisitions) pursuant
to the provisions of Article 6.
(2) The Minister of Finance and Economy may cancel
authorizations or registrations of foreign investors or foreign
invested enterprises when any of the following items applies:
1. In cases where registered foreign invested
companies, under Article 1, close down their businesses or discontinue
business activities for more than two years.
2. In cases where registered foreign invested
companies under Article 1, or authorized foreign investors under
Article 28, Paragraph 4, do not perform correction orders or other
measures requested under the provisions of Article 28, Paragraph
4.
3. In cases where registered foreign invested
companies under Article 1 are dissolved.
4. In cases where foreign investors apply for
deregistration in accordance with Presidential Decree regulations.
Article 22 (Disposal Limitations, etc., on Capital
Goods)
(1) Where foreign investors or foreign invested
enterprises attract capital goods pursuant to the regulations contained
in Article 10, Paragraph 1, and seek to transfer, lease, or use
said goods for purposes which differ from those enumerated in accepted
notices, the foreign investors or foreign invested enterprises concerned
shall give notice to the Minister of Finance and Economy, except
in those cases stipulated by Presidential Decree.
(2) Where notices are given pursuant to Paragraph
1, the Minister of Finance and Economy shall determine whether to
accept said notices, and shall notify the outcomes of such decisions
to those persons who submitted said notices.
(3) Registered foreign invested enterprises shall
not engage in the following activities, except in those cases stipulated
by Presidential Decree.
1. In cases of foreign investor activities in
restricted industries, pursuant to the regulations contained in
Article 4, Paragraph 3, going beyond authorized activity levels.
2. In cases of acquisitions of stocks of enterprises,
pursuant to the regulations contained in Article 4, Paragraph 3,
in which said acquisitions result in purchases exceeding the authorized
levels.
(4) Foreign investors or foreign invested enterprises
may not use investment capital for purposes other than those mentioned
in accepted notices or permissions.
Article 23 (Transfer of Stock or Shares, etc.)
(1) Where foreign investors transfer stocks or
shares acquired, pursuant to the regulations contained in Article
5 through Article 7, or where foreign investors decrease ownership
of stocks or shares through reductions of such stocks or shares,
said foreign investors shall report such changes to the Minister
of Finance and Economy, in accordance with Presidential Decree.
(2) Where permissions for, or registrations of,
foreign direct investments have been canceled or de-registered pursuant
to the regulations contained in Article 21, Paragraph 2, foreign
investors implementing such foreign direct investments shall transfer
stocks or shares they own to nationals, or legal entities, of the
Republic of Korea within 6 months of such cancellations of permission,
or de-registrations. However, if compelling reasons are advanced,
said foreign investors may extend the periods for completion of
such transfers within a limit of 6 months, with permission from
the Minister of Finance and Economy.
(3) If foreign investors have not registered,
pursuant to the regulations contained in Article 21, Paragraph 1,
or where foreign investors fail to comply with correction orders
issued, pursuant to the regulations contained in Article 28, Paragraph
4, then such foreign investors shall transfer stocks or shares they
own to nationals, or legal entities, of the Republic of Korea within
6 months from the dates when said foreign investors fail to comply
with correction orders. However, if compelling reasons are advanced,
these transfers may be delayed for periods of up to 6 months, with
permission from the Minister of Finance and Economy.
Article 24 (Collection and Preparation of Statistical
Data in Relation to Foreign Direct Investments)
(1) The Minister of Finance and Economy may request
city mayors, provincial governors, the Head of the Korea Trade-Investment
Promotion Agency, or foreign invested enterprises to provide materials
and statistical data, etc., needed to conduct analyses of the effects
of foreign direct investments on the national economy, such as economic
development, balances of international payments, and employment.
(2) City mayors, provincial governors, the Head
of the Korea Trade-Investment Promotion Agency, or foreign invested
enterprises shall comply with said requests, pursuant to the regulations
contained in Paragraph 1, for materials or statistical data, etc.,
concerning foreign direct investments, in the absence of special
countervailing reasons.
(3) Public officials collecting or creating materials
or statistical data concerning foreign direct investments pursuant
to the regulations contained in Paragraph 1 and Paragraph 2, shall
protect the confidentiality of information related to the operations
of the foreign invested enterprises concerned.
CHAPTER VI. TECHNOLOGY INDUCEMENT
Article 25 (Notices of Technology Inducement Contracts)
(1) Nationals, or legal entities, of the Republic
of Korea, entering into technology inducement contracts determined
by Presidential Decree with foreign nationals shall submit notices
to the Minister of Finance and Economy. This requirement also applies
where changes are made to the terms and conditions of said contracts.
(2) Where notices are submitted, pursuant to Paragraph
1, the Minister of Finance and Economy shall determine whether to
accept said notices, and shall reply to the persons submitting said
notices within the time periods stipulated by Presidential Decree.
(3) Technology inducement contracts, notices of
which have been accepted pursuant to Paragraph 1, shall be executed
within 6 months from the dates of notice acceptances. However, this
period may be extended with approval from the Minister of Finance
and Economy.
(4) Notices of technology inducement contracts,
which have not been executed within the time periods stipulated
in the regulations contained in Article 4, Paragraph 2, shall be
deemed to have lost their effectiveness.
Article 26 (Tax Reductions or Exemptions on Prices
Paid for Technology Inducements)
(1) With respect to contracts which are designed
to attract advanced technologies crucially needed to enhance the
international competitiveness of domestic industries, should said
contracts satisfy the standards stipulated by Presidential Decree,
corporate or income taxes on the prices paid for said technology
inducements, provided such inducements conform to said contracts,
shall be exempted for five years from the first date when disbursements
are made, pursuant to said contracts.
(2) Technology suppliers who seek to obtain tax
exemptions, pursuant to Paragraph 1 shall submit notices to the
Minister of Finance and Economy, along with notices of the technology
inducement contracts concerned.
CHAPTER VII. SUPPLEMENTARY RULES
Article 27 (Commission on Foreign Direct Investment
Policy)
(1) In order to examine the following matters,
a Commission on Foreign Direct Investment Policy (hereinafter "the
Commission") shall be established within the Ministry of Finance
and Economy.
1. Basic policies and affairs relating to the
major points of the foreign direct investment system
2. Affairs relating to improving the major points
of the foreign direct investment environment
3. Affairs relating to tax reduction or exemption
criteria governing foreign invested enterprises
4. Affairs relating to cooperation and reconciliation
of opinions and conflicts among central administrative institutions
and other municipalities in relation to foreign direct investments
5. Affairs relating to the support of local governments,
pursuant to the regulations contained in Article 14
6. Affairs relating to the designation and support
of foreign investment zones, pursuant to the regulations contained
in Article 18 and Article 19
7. Other major affairs relating to the inducement
of foreign direct investments
(2) The Head of the Commission shall be the Minister
of Finance and Economy, and the following individuals will be Commission
members.
1. The Minister of Foreign Affairs and Trade,
the Minister of Science and Technology, the Minister of Culture
and Tourism, the Minister of Agriculture and Forestry, the Minister
of Commerce, Industry and Energy, the Minister of Information and
Communication, the Minister of the Environment, the Minister of
Labor, the Minister of Construction Transportation, and the Minister
of Maritime and Fisheries Affairs
2. Related city and provincial Heads
3. Heads of Related Institutions stipulated by
Presidential Decree.
(3) In order to investigate or coordinate the
subjects to be examined by the Commission, and to handle those matters
delegated by the Commission, an Executive Commission for Foreign
Direct Investment (hereinafter referred to as "Executive Commission")
shall be organized.
(4) Matters necessary for the establishment and
operation of the Commission, other than those stipulated in Paragraphs
1 through 3, shall be stipulated by Presidential Decree.
Article 28 (Reports, Investigations, and Corrections,
etc.)
(1) When foreign investment and technology inducements
are deemed necessary in relation to this Act, the Minister of Finance
and Economy and the Ministers of competent Ministries may request
reports from foreign investors, foreign invested enterprises, persons
who have concluded technology inducement contracts, The Head of
the Korea Trade-Investment Promotion Agency, Heads of related financial
institutions, and others.
(2) When deemed necessary for implementation of
this Act, the Minister of Finance and Economy may request public
officials or the heads of institutions to investigate the following
items:
1. Foreign invested capital (including the objects
of investment) and status regarding inducement, use or disposition
of foreign capital
2. Affairs in relation to technology inducements
3. Records of compliance with the requirements
of this Act, such as authorizations, permissions, notice acceptances,
etc.
(3) Persons conducting investigations, pursuant
to the regulations contained in Paragraph 2, shall wear identification
tags indicating their authority, and display said identification
tags to those concerned.
(4) The Minister of Finance and Economy may order
persons having carried out acts of inducement, usage or disposition
of said foreign capital, or to related persons, to take corrective
measures or other necessary measures when one of the following items
apply:
1. In cases of violations or improprieties with
respect to compliance with the requirements of this Act, such as
authorizations, permissions, and notice acceptances.
2. In cases of discovery of violations of this
Act, pursuant to Article 4, Paragraph 2, Item 1.
(5) Where persons who induce foreign capital goods
fail to clear customs and take over said foreign capital goods within
the time periods stipulated by the Customs Law, the Commissioner
of Customs Administration may sell such foreign capital goods as
stipulated by Presidential Decree.
Article 29 (Review and Confirmation of Resource
Inducement System)
(1) With respect to capital goods or raw materials
brought in, pursuant to this Act, if the standards stipulated by
Presidential Decree are satisfied regarding such matters as tax
reductions or exemptions, then the Ministers of competent Ministries
shall review and confirm the status of the induced foreign capital
goods, and may forbid inducement of said capital goods or raw materials.
(2) With respect to capital goods reviewed and
confirmed by the Ministers of competent Ministries, such review
and confirmation, pursuant to the regulations specified in Paragraph
1, shall be regarded as an import license, pursuant to the Foreign
Trade Act.
Article 30 (Relationships with other Laws and
International Agreements)
(1) With respect to matters addressed by this
Act concerning foreign currencies and overseas transactions, unless
otherwise specifically dealt with by the provisions of this Act,
the Foreign Exchange Management Law shall have overriding authority.
(2) Foreign invested enterprises may pay dividends
by and with newly issued stock up to amounts equivalent to the total
amounts of the dividends by special resolution pursuant to the provisions
of Article 434, Commercial Code, notwithstanding the provisions
of the proviso of Paragraph 1, Article 462-2, Commercial Code.
(3) When foreign investors invest in kind, written
confirmation of completions of investments in kind issued by the
Head of the Office of Customs Administration as to the performance
of said investments in kind, the types, quantities and prices of
the objects concerned shall be considered as investigation reports
by inspectors under the provisions of Article 203, Non-Contentions
Case Litigation Procedure Act, notwithstanding the provisions of
Article 299, Commercial Code.
(4) In cases where technical assessment organizations
stipulated by Presidential Decree evaluate the costs of intellectual
property rights, etc., under Article 2, Paragraph 1, Item 7-D, the
assessment content shall be considered as the one appraised by certified
appraisers, in accordance with the provisions of Article 299-2,
Commercial Code.
(5) Nationals or legal entities of the Republic
of Korea who want to run concerned businesses together with foreign
investors who submit reports in accordance with the provisions of
Article 5, Paragraph 1, may reevaluate their investment objective
in accordance with the Revaluation of Asset Act on the first day
of each month, being the revaluation day, notwithstanding the provisions
of Article 4, Revaluation of Assets Act.
Article 31 (Delegation of Authority, etc.)
The Minister of Finance and Economy, or the Ministers
of competent Ministries may delegate or entrust parts of their authority
stipulated by Presidential Decree to the Administrator of the National
Tax Administration, the Administrator of the Korea Customs Service,
the Head of the Korea Trade-Investment Promotion Agency, and Heads
of the foreign direct investment related institutions.
CHAPTER VIII. PENAL PROVISIONS
Article 32 (Penal Provision)
With respect to overseas remittances of funds,
or to inducement of foreign investments, persons (including representatives
of corporate entities) responsible for flight of foreign capital
shall be subject to prison sentences exceeding one year or fines
of amounts more than 2 times and less than 10 times the transmitted
amounts. In such cases, foreign capital that has fled abroad shall
be forfeited; if such forfeiting is not possible, than penalties
of amounts equal to the foreign capital that has fled abroad shall
be levied.
Article 33 (Penal Provisions)
Persons in violation of Article 22 of this Act
shall be subject to imprisonment terms of up to five years, or fines
of up to 50 million won.
Article 34 (Penal Provisions)
Person who make misrepresentations on documents
relating to approvals, permissions, or notices pursuant to this
Act shall be subject to imprisonment terms of up to three years,
or fines of up to 30 million won.
Article 35 (Penal Provisions)
Person, including enterprise representatives,
falling under any one of the following provisions shall be subject
to imprisonment terms of up to one year, or fines of up to 10 million
won.
1. Persons who, in violation of Article 6, Paragraph
1, acquire outstanding stocks etc., without receiving the necessary
authorizations.
2. Persons who, in violation of Article 6, Paragraph
3, acquire outstanding stocks of defense-related businesses without
receiving the necessary authorizations
3. Person who do not comply with, refuse, disturb
or avoid investigations under the provisions of Article 28, Paragraph
2.
4. Person who fails to take necessary measures
pursuant to, or to comply with orders, etc., under Article 28, Paragraph
4.
Article 36 (Penal Provisions)
If offenses, pursuant to the regulations contained
in Article 32 through Article 35, are committed by legal entities
or their representatives or by workers under hire by individuals,
including agents and employees in connection with the businesses
of said legal entities or individual, punishment will be meted out
to the persons committing or omitting those acts constituting said
violations, and monetary fines pursuant to the pertinent Article
shall be imposed on said legal entities or individuals.
SUPPLEMENTARY PROVISIONS
Article 1 (Effective Date)
This Act shall take effect 2 months after the
date of its promulgation.
Article 2 (Application Deadline)
The Regulations outlined in Article 20, Paragraph
3, Item 2, will apply until December 31, 2003.
Article 3 (Abolishment of Other Laws)
The Foreign Direct Investment and Foreign Capital
Inducement Act is hereby abolished.
Article 4 (Application of Regulations in Relation
to Tax Reductions or Exemptions)
Tax reductions or exemptions under this Act shall
apply to tax reductions or tax exemptions first requested upon enforcement
of this Act.
In this case, if tax reductions or tax exemptions
have been applied for in accordance with the previous Act on Foreign
Direct Investment and Foreign Capital Inducement before enforcement
of this Act, but the related tax reductions or tax exemptions have
not been approved before this Act takes effect, this Act applies,
it being deemed that said tax reductions or tax exemptions were
applied for on the first day of enforcement of this Act.
Article 5 (Interim Measures in Relation to Acceptance
of Notices, etc.)
(1) Those granted whose notices, have been accepted
approved, permitted, reported, confirmed or registered, etc. (hereinafter
referred to as "approvals, etc.") in accordance with the
previous Act on Foreign Direct Investment and Foreign Capital Inducement
before this Act takes effect shall be deemed as having notice accepted,
or approval granted, etc.
(2) For notice applications, approvals, permissions,
confirmations, or registration applications in accordance with the
previous Act on Foreign Direct Investment and Foreign Capital Inducement
which are being processed when this Act takes effect, the regulations
of the previous Act on Foreign Direct Investment and Foreign Capital
Inducement shall apply.
(3) For tax reductions or tax exemptions already
granted in accordance with the previous Act on Foreign Direct Investment
and Foreign Capital Inducement before this Act takes effect, the
regulations of the previous Act on Foreign Direct Investment and
Foreign Capital Inducement shall apply, notwithstanding the provisions
of Article 3, Supplementary Provisions.
Article 6 (Interim Measures in Relation to Free
Export Zones)
When this Act takes effect, Free Export Zones,
pursuant to the free Export Zone Establishment Law, will be granted
tax reductions or exemptions and lease reductions or exemptions
as Foreign Investment Zone.
Article 7(Interim Measures in Relation to Penal
Provisions)
For application of the Penal Provisions to activities
carried out before this Act takes effect, the regulations of the
previous Act on Foreign Direct Investment and Foreign Capital Inducement
shall apply.
Article 8 (Revision of Other Laws)
(1) Laws in relation to South-North Exchanges
will be revised as follows:
Article 26, Paragraph 3, Item 2 will be revised
as follows:
2. The Foreign Investment Promotion Act
(2) Laws in relation to Exclusive Regulations
and Public Trade will be revised as follows:
Article 8, Paragraph 2, Item 2 "Act on Foreign
Direct Investment and Foreign Capital Inducement" will become
"The Foreign Investment Promotion Act."
(3) The Foreign Exchange Control Act will be revised
as follows:
Article 21, Paragraph 2, Item 4 will be revised
as follows:
(4) The Revaluation of Property Law will be revised
as follows:
Article 18, Paragraph 2, "The Foreign Direct
Investment and Foreign
Capital Inducement Act" will become "The
Foreign Investment Promotion Act."
(5) The Tax Reduction or Exemption Law will be
revised as follows:
Article 3, Paragraph 1, Item 17 will be revised
as:
17. The Foreign Investment Promotion Act
Article 47, Paragraph 3, " Act on Foreign
Direct Investment and Foreign Capital Inducement, Article 14 and
Article 16, Paragraph 1" will be revised as "The Foreign
Investment Promotion Act, Article 9 and Article 11, Paragraph 1,"
and "Act on Foreign Direct Investment and Foreign Capital Inducement
Act," will be revised as "The Foreign Investment Promotion
Act," "businesses bringing in advanced technologies pursuant
to the regulations specified in Article 14, Paragraph 1, Item 1"
will be revised as, "industry-supporting service businesses
or businesses bringing in advanced technologies pursuant to the
regulations specified in Article 9, Paragraph 1, Item 1," and
Article 47, Paragraph 4, "Act on Foreign Direct Investment
and Foreign Capital Inducement, Article 16, Paragraph 1" will
be revised as the "The Foreign Investment Promotion Act, Article
11 Paragraph 1."
Article 117, Paragraph 5, "Act on Foreign
Direct Investment and Foreign Capital Inducement" will be revised
as "The Foreign Investment Promotion Act", and Article
117, Paragraph 7 and Paragraph 8, "Act on Foreign Direct Investment
and Foreign Capital Inducement, Article 14" will become "The
Foreign Investment Promotion Act, Article 9."
(6) The Small and Medium Size Company Support
Law will be revised as follows:
Article 16, Paragraph 3, "Act on Foreign
Direct Investment and Foreign Capital Inducement" will become
"The Foreign Investment Promotion Act."
(7) The Stock Exchange Law will be revised as
follows:
Article 191, Paragraph 7, Item 1, "Act on
Foreign Direct Investment and Foreign Capital Inducement" will
become "The Foreign Investment Promotion Act."
(8) Special-case laws in relation to Tourism Housing
Facilities Support will be revised as follows:
Article 13, Paragraph 3, "Foreign Capital
Inducement Act" will become "The Foreign Investment Promotion
Act and the Law on Inducement and Management of Public Loans."
(9) The Income Tax Law will be revised as follows:
Article 13, Paragraph 1, Item 2 "Foreign
Capital Inducement Act" will become "The Foreign Investment
Promotion Act."
(10) The laws relating to support for the 18th Winter Universiade
and the 4th
Asian Games will be revised as follows:
Article 6, Paragraph 2, "Foreign Capital
Inducement Act" will become "The Foreign Investment Promotion
Act and the Law on Inducement and Management of Public Loans."
Article 9 (Relationships with Other Laws)
In cases where provisions related to foreign investments
in the previous Act on Foreign Direct Investment and Foreign Capital
Inducement are quoted by other laws when this Act takes effect,
if this Act contains provisions corresponding to the quoted provisions,
such quotations shall be considered to be made as relating to the
corresponding provisions of this Act.
[Attachment 1]Permits in Respect of Factory Construction
(related to Article 17, Paragraph 1)
1. Approvals of factory construction, pursuant
to the provisions of Article 13, Paragraph 1, Industrial Layout
and Factory Construction Act
Upon approval, receipt the following permits,
approvals, etc., are primarily to be deemed as having been granted.
a. Permits for conversion of farmlands, pursuant
to the provisions of Article 36, Farmlands Act
b. Reports on conversion of farmlands, pursuant
to the provisions of Articles 37 and 45, Farmlands Act
c. Approvals for usage changes, pursuant to the
provisions of Article 42, Farmlands Act
d. Approvals for basic agricultural facility usage
for non-designated purposes, pursuant to the provisions of Article
20, Rearrangement of Agricultural and Fishing Villages Act
e. Permits for conversion of grasslands, pursuant
to the provisions of Article 23, Paragraph 1, Grasslands Act
f. Cancellation of designations as dairy farming
areas, pursuant to the provisions of Article 7, Paragraph 1, Dairy
Farming Promotion Act
g. Permits for conversion of preservation designated
forest lands, pursuant to the provisions of Article 18, Paragraph
1, Forestry Act
h. Permits for, or reports on trees, cutting,
etc., pursuant to the provisions of Article 90, Paragraph 1, Forestry
Act
i. Permits for activities within erosion control
areas, pursuant to the provisions of Article 14, Paragraph 2, Work
Against Land Erosion or Collapse Act
j. Cancellation of designations as erosion control
areas, pursuant to the provisions of Article 20, Paragraph 1, Work
Against Land Erosion or Collapse Act
k. Permits for land transaction contracts, pursuant
to the provisions of Article 21, Paragraph 3, Utilization and Management
of National Territory Act
l. Reports on land transaction contracts, pursuant
to the provisions of Article 21, Paragraph 7, Utilization and Management
of National Territory Act
m. Permits for changes of land types, or permits
for division of lands, pursuant to the provisions of Article 4,
Paragraph 1, Urban Planning Act
n. Permits for construction, pursuant to the provisions
of Article 8, Buildings Act
o. Reports on construction, pursuant to the provisions
of Article 9, Buildings Act
p. Permits for river construction operations,
pursuant to the provision of Article 23, Paragraph 1, Rivers Act
q. Permits for occupancy of roads, pursuant to
the provisions of Article 40, Paragraph 1, Roads Act
r. Permits for activities within areas adjacent
to roads, pursuant to the provisions of Article 50, Paragraph 5,
Roads Act
s. Permits for activities within roadside areas,
pursuant to the provisions of Article 51, Paragraph 3, Roads Act
t. Permits for private road building, pursuant
to the provisions of Article 4, Private Roads Act
u. Permits for occupancy of rivers, etc., pursuant
to the provisions of Article 25, Paragraph 1, Rivers Act
v. Permits for occupancy and usage of public water
surfaces, pursuant to the provisions of Article 4, Paragraph 1,
Public Water Surface Management Act
w. Licenses for public water surface reclamation,
pursuant to the provisions of Article 4, Public Water Surface Reclamation
Act
x. Permits for digging of neglected graves, pursuant
to the provisions of Article 16, Paragraph 2, Burials and Burial
Grounds, etc., Act
y. Permits for beneficial usage of state properties,
pursuant to the provisions of Article 24, State Properties Act
z. Cancellation of road, river, gutter or riverbank
usage, pursuant to the provisions of Article 30, State Properties
Act
2. Approvals for business plans, pursuant to the
provisions of Article 21, Support of Small and Medium Enterprise
Start-Up Act
a. Permits for conversion of farmlands, pursuant
to the provisions of Article 36, Farmlands Act
b. Permits for conversion of grasslands, pursuant
to the provisions of Article 23, Paragraph 1, Grasslands Act
c. Cancellation of dairy farming area designations,
pursuant to the provisions of Article 7, Paragraph 1, Dairy Farming
Promotion Act
d. Permits for conversion of preservation designated
forest lands, pursuant to the provisions of Article 18, Paragraph
1, Forestry Act
e. Permits for, or reports on, trees cutting,
etc., pursuant to the provisions of Article 90, Paragraph 1, Forestry
Act
f. Permits for activities within erosion control
areas, pursuant to the provisions of Article 14, Paragraph 2, Work
Against Land Erosion or Collapse Act
g. Cancellation of erosion control area designations,
pursuant to the provisions of Article 20, Paragraph 1, Work Against
Land Erosion or Collapse Act
h. Approvals for factory construction, pursuant
to the provisions of Article 13, Paragraph 1, Industrial Layout
and Factory Construction Act
i. Determinations of plan changes respecting utilization
of national territories, pursuant to the provisions of Article 8,
Utilization and Management of National Territory Act
j. Permits for land transaction contracts, pursuant
to the provisions of Article 21, Paragraph 3, Utilization and Management
of National Territory Act
k. Reports on land transaction contracts, pursuant
to the provisions of Article 21, Paragraph 7, Utilization and Management
of National Territory Act
l. Permits for land type changes, or permits for
land divisions, pursuant to the provisions of Article 4, Paragraph
1, Urban Planning Act
m. Determinations of urban planning changes, pursuant
to the provisions of Article 12, Urban Planning Act, with respect
to facilities under Article 2, Paragraph 1, Subparagraph 1, Item
b, Urban Planning Act
n. Designations of operators, pursuant to the
provisions of Article 23, Paragraph 5, Urban Planning Act
o. Approvals for operating plans, pursuant to
the provisions of Article 25, Urban Planning Act
p. Permits for occupancy of roads, pursuant to
the provisions of Article 40, Paragraph 1, Roads Act
q. Permits for activities within areas adjacent
to roads, pursuant to the provisions of Article 50, Paragraph 5,
Roads Act
r. Permits for activities within roadside areas,
pursuant to the provisions of Article 51, Paragraph 3, Roads Act
s. Permits for private road construction, pursuant
to the provisions of Article 4, Private Roads Act
t. Permits for river construction operations,
pursuant to the provisions of Article 23, Paragraph 1, Rivers Act
u. Permits for occupancy of rivers, etc., pursuant
to the provisions of Article 25, Paragraph 1, Rivers Act
v. Permits for occupancy and usage of public water
surfaces, pursuant to the provisions of Article 4, Public Water
Surface Management Act
w. Licenses for public water surface reclamation,
pursuant to the provisions of Article 4, Public Water Surface Reclamation
Act
x. Permits for digging of neglected graves, pursuant
to the provisions of Article 16, Paragraph 2, Burials and Burial
Grounds, etc., Act
y. Permits for beneficial usage of state properties,
pursuant to the provisions of Article 24, State Properties Act
z. Cancellation of road, river, gutter or riverbank
usage, pursuant to the provisions of Article 30, State Properties
Act
3. Permits for Construction, pursuant to the provisions
of Article 8, Buildings Act upon approval receipt, the following
permits, approvals, etc., are primarily to be deemed granted.
a. Permits for conversion of farmlands, pursuant
to the provisions of Article 36, Farmlands Act
b. Permits for forest type changes, pursuant to
the provisions of Article 90, Forestry Act
c. Permits for land type changes, pursuant to
the provisions of Article 4, paragraph 1, Urban Planning Act
d. Designations of urban planning activity operators,
pursuant to the provisions of Article 23, paragraph 1, Urban Planning
Act
e. Approvals for operating plans, pursuant to
the provisions of Article 25, Urban Planning Act
f. Reports on construction, pursuant to the provisions
of Article 9, Paragraph 1, Buildings Act
g. Reports on building of temporary structures
for construction, pursuant to the provisions of Article 15, Buildings
Act
h. Reports on building of structures, pursuant
to the provisions of 72, Construction Act
i. Permits for occupancy of roads, pursuant to
the provisions of Article 40, Paragraph 1, Roads Act
j. Permits for activities within areas adjacent
to roads, pursuant to the provisions of Article 50, paragraph 5,
Roads Act
k. Permits for activities within roadside areas,
pursuant to the provisions of Article 51, Paragraph 3, Roads Act
l. Permits for private road building, pursuant
to the provisions of Article 4 of the Private Roads Act
m. Permits for occupancy of rivers, etc., pursuant
to the provisions of Article 25, Paragraph 1, Rivers Act
n. Approvals for installations of converted waterworks,
pursuant to the provisions of Article 36, or Article 38, Water Supply
and Waterworks Installation Act
o. Permits for installations of facilities or
structures, pursuant to the provisions of Article 20, Sewage Act
p. Reports on installations of drainage facilities,
pursuant to the provisions of Article 24, Sewage Act
q. Permits for, or reports on air pollutants discharge
facilities, pursuant to the provisions of Article 10, Atmospheric
Environment Preservation Act
r. Permits for, or reports on waste water discharge
facilities, pursuant to the provisions of Article 10, Environment.
Affecting Water Quality Conservation Act
s. Permits for, or reports, on noise or vibration
causing facilities, pursuant to the provisions of Article 9, Noise
and Vibration Control Act
t. Approvals for, or report on, installation of
waste control facilities, pursuant to the provisions of Article
30, paragraph 2, Wastes Control Act
u. Reports on installation of waste water purification
facilities and septic tanks, pursuant to the provisions of Article
9, Paragraph 2 and Article 10, Paragraph 2, Disposal of Sewage,
Excreta and Livestock Wastewater Act
v. Approvals for, or reports on, private usage
electricity facility construction plans, pursuant to the provisions
of Article 32, Electricity Services Act
w. Permits for storage construction for explosives,
pursuant to the provisions of Article 25, Control of Firearms, Swords,
Explosives, etc., Act
x. Consents to construction permits, etc., pursuant
to the provisions of Article 8, Paragraph 1, Fire Services Act
y. Permits for installation of plants, etc., pursuant
to the provisions of Article 16, Paragraph 1, Fire Services Act
z. Reports on fire fighting water facility changes,
etc., pursuant to the provision of Article 43, Paragraph 2, Fire
Services Act
α. Reports on fire fighting facility construction
execution, pursuant to the provisions of Article 62, Paragraph 1,
Fire Services Act
4. Permits for waste water discharge facilities,
pursuant to the provisions of Article 10, Water Quality Conservation
Environment Affecting Act, (if there are no waste water discharge
facilities permits for air pollutant, discharge facilities, pursuant
to the provisions of Article 10, Atmospheric Environment Preservation
Act) upon approval receipt, the following permits, approvals, etc.,
are primarily to be deemed granted.
a. Permits for, or reports on, air pollutant discharge
facilities, pursuant to the provisions of Article, 10, Atmospheric
Environment Preservation Act
b. Permits for, or reports on waste water discharge
facilities, pursuant to the provisions of Article 10, Water Quality
Conservation Environment Affecting Act
c. Permits for, or reports on, noise or vibration
causing facilities, pursuant to the provisions of Article 9, Noise
and Vibration Control Act
d. Approvals for or reports on, construction of
waste control facilities, pursuant to the provisions of Article
30, paragraph 2, Waste Control Act
e. Registrations of businesses handling hazardous
substances, pursuant to the provisions of Article 15, Control of
Hazardous Chemical Substances Act
f. Reports on of hazardous substance manufacture
that requires surveillance, pursuant to the provisions of Article
13, Paragraph 1, Control of Hazardous Chemical Substances Act
g. Reports on soil contamination causing facilities,
pursuant to the provisions of Article 11, Paragraph 1, Soil Environment
Conservation Act
4. Approvals for building usage, pursuant to the
provisions of Article 18, Building Act upon approval receipt, the
following permits, approvals, etc., are primarily to be deemed granted.
a. Inspections of installation completions of
converted waterworks, pursuant to the provisions of Article 15,
Paragraph 1, Water Supply and Waterworks Installation Act
b. Reports on water drainage facility installations,
pursuant to the provisions of Article 24, Paragraph 2, Sewage Act
c. Reports on discharge facility operation commencements,
pursuant to the provisions of Article 14, Preservation of Atmospheric
Environment Act
d. Reports on operation discharge facility operation
commencements, pursuant to the provision of Article 14, Water Quality
Conservation Environment Affecting Act
e. Reports on waste control facility usage commencements,
pursuant to the provision of Article 30, paragraph 4, Wastes Control
Act
f. Inspections of waste water purification facility
and septic tank construction completions, pursuant to the provisions
of Article 12, Disposal of Sewage, Excreta and Livestock Wastewater
Act
g. Internal communications line pre-usage inspections,
pursuant to the provisions of Article 36, Information Communications
Works Act
h. Private use Electricity facility pre-usage
inspections, pursuant to the provisions of Article 34, Electricity
Services Act
i. Explosives' storage construction completion
inspections, pursuant to the provisions of Article 43, Control of
Firearms, Swords, Explosives, etc. Act
j. Plant, etc. completion inspections, pursuant
to the provisions of Article 17, Paragraph 2, Fire Services Act
k. Fire fighting facility completion inspections,
pursuant to the provisions of Article 62, Paragraph 2, Fire Services
Act
l. Registrations of any changes in official land
registers, pursuant to the provisions of Article 3, Land Register
Act
[Attachment 2]
Separately Processed Civil Petitions Related to
Foreign Investments (Related to Article 17, Paragraph 3)
1. Permits for, or reports on, usage changes,
pursuant to the provisions of Article 14, Building Act
2. Confirmations of chemical substances excluded
from hazardous substance inspections, pursuant to the provisions
of Article 40, Paragraph 1, Industrial Safety and Health Act
3. Permits for, or reports on, acquisitions of
Lands by foreigners, pursuant to the provisions of Article 4, Foreigner
Acquisitions of Lands Act
4. Hazardous chemical substance examinations,
pursuant to the provisions of Article 8, Control of Hazardous Chemical
Substances Act
5. Permits for manufacture and use of poisonous
substances whose handling is limited, pursuant to the provisions
of Article 20, Paragraph 1, Control of Hazardous Chemical Substances
Act
6. Reports on specified facility installations,
pursuant to the provisions of Article 30-2, Water Quality Affecting
Environment Act
7. Reports on noise and vibration-causing facility
operation commencements, pursuant to the provisions of Article 13,
Noise and Vibration Control Act
8. Consultations on environment impact assessment
reports, pursuant to the provisions of Article 16, Environmental
Impact Assessment Act
9. Permits for, or reports on, activities within
water supply source protection areas, pursuant to the provisions
of Article 5, Paragraph 4, Water Supply and Waterworks Installation
Act
10. Permits for occupancy or usage of natural
parks, pursuant to the provisions of Article 23, Natural Parks Act
11. Permits for occupancy or usage of natural
park protection areas, pursuant to the provisions of Article 25,
Natural Parks Act
12. Reports on business combinations, pursuant
to the provisions of Article 12, Monopoly Regulation and Fair Trade
Act
13. Permits for business activities which foreign
investors desire to engage in through foreign invested corporations
14. Other permits provided by Presidential Decree
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