Foreign Direct Investment (FDI) Registration in Korea: Complete Guide
If you are a foreign national or corporation planning to invest in a Korean company or establish a new entity in Korea, FDI registration (외국인직접투자 신고) is a mandatory legal requirement under the Foreign Investment Promotion Act (외국인투자촉진법). Skipping this step means losing all legal protections, tax incentives, and eligibility for the D-8 investor visa. This guide walks you through every step.
Table of Contents
- What Is Foreign Direct Investment?
- FDI Reporting Obligation
- Step-by-Step Registration Procedure
- Post-Investment Registration
- D-8 Visa Connection
- Restricted Industries
- FAQ
1. What Is Foreign Direct Investment?
Under the Foreign Investment Promotion Act (FIPA), Foreign Direct Investment (FDI) refers to investment made by a foreign individual or entity into a Korean corporation where the investor acquires 10% or more of shares or equity, or participates in the management even with less than 10% ownership.
Legal Definition
- Legal basis: Foreign Investment Promotion Act, Article 2
- Eligible investors: Foreign individuals, foreign corporations, overseas Koreans without Korean nationality
- Investment targets: Acquisition of shares/equity in a Korean corporation, provision of long-term loans (5+ years), establishment of a business office
Types of FDI
| Type | Description |
|---|---|
| New Establishment | Acquiring equity by founding a new corporation |
| Capital Increase | Participating in a paid-in capital increase of an existing corporation |
| M&A | Acquiring existing shares or equity stakes |
2. FDI Reporting Obligation
Pre-Investment Reporting is Mandatory
FDI must be reported before the investment is executed — before any funds are remitted or shares are acquired. This rule has no exceptions.
Key rule: File your FDI report and receive confirmation before transferring investment funds or acquiring shares.
Who Must Report
- Foreign nationals or entities acquiring shares/equity (new establishment or existing company)
- Foreign entities providing long-term loans of 5 years or more to a Korean company
- Foreign entities establishing a branch or liaison office in Korea
Exemptions
The following do not require FDI reporting (separate procedures apply):
- Portfolio investment in listed stocks below 10% with no management participation
- Simple real estate purchase (subject to separate reporting under the Foreign Exchange Transactions Act)
3. Step-by-Step Registration Procedure
Where to File
FDI reports can be submitted through either of the following channels:
① Designated Foreign Exchange Bank (지정거래외국환은행)
- Any bank authorized under the Foreign Exchange Transactions Act (e.g., KEB Hana Bank, Shinhan Bank, Woori Bank, KB Kookmin Bank)
- Available in person at a branch or via online banking
② KOTRA (Korea Trade-Investment Promotion Agency)
- Online portal: www.investkorea.org
- In-person at KOTRA regional offices nationwide
Required Documents
| Document | Notes |
|---|---|
| FDI Report Form | Completed in the prescribed format |
| Investor Identification | Passport copy (individual) / Corporate registry (legal entity) |
| Proof of Investment Amount | Bank balance statement, fund sourcing confirmation |
| Corporate Registry or Incorporation Plan | Existing corporation: registry extract; New corporation: incorporation plan |
| Business Plan | Describing investment purpose and planned business activities |
Registration Flow
Submit FDI Report Form
↓
Report Accepted (1–3 business days)
↓
Receive FDI Confirmation Certificate
↓
Remit Investment Funds (overseas wire transfer or in-kind contribution)
↓
Complete Company Incorporation or Capital Increase
Amendment After Filing
If there are changes to the investment amount, business type, or investor identity after the initial filing, a separate amendment report must be submitted.
4. Post-Investment Registration
After the FDI report is accepted and investment funds are paid in, the following registrations must be completed:
① Corporate Registration (법인설립등기)
- Authority: District Court Registry Office (관할 법원 등기소)
- Documents: Articles of incorporation, shareholder register, board minutes, FDI confirmation certificate, etc.
- Processing time: Approx. 5–7 business days
② Business Registration (사업자 등록)
- Authority: Local tax office or Hometax (National Tax Service)
- Apply after corporate registration is complete
- Processing time: Approx. 2–3 business days
③ Foreign-Invested Company Registration (외국인투자기업 등록)
- Authority: Metropolitan/provincial governor of the company's location, or KOTRA
- Issues the Foreign-Invested Enterprise Certificate
- Required to access government support programs and tax incentives
Estimated Timeline
| Step | Duration |
|---|---|
| FDI Report Acceptance | 1–3 business days |
| Investment Payment & Confirmation | 2–5 business days |
| Corporate Registration | 5–7 business days |
| Business Registration | 2–3 business days |
| Total Estimated Time | Approx. 2–4 weeks |
5. D-8 Visa Connection
What Is the D-8 Visa?
The D-8 (Corporate Investment) visa is issued to foreign investors who have completed FDI registration and intend to engage in the management, operation, or technical/production activities of a foreign-invested company in Korea.
D-8 Visa Eligibility Requirements
- Completed FDI report and corporate registration
- Investment amount of ₩100 million (approx. USD 75,000) or more per investor
- Completed foreign-invested company registration
- Verified actual business operations (no shell companies)
D-8 Visa Application Process
- Complete FDI registration and corporate establishment
- Obtain the Foreign-Invested Enterprise Certificate
- Submit D-8 visa application to the Immigration Office
- Visa issuance (typically 3–5 business days)
The D-8 visa is typically issued for 2–5 year periods and can be renewed. Foreign nationals must also complete alien registration (외국인등록) once they enter Korea.
6. Restricted Industries
Open Industries
The vast majority of industries — manufacturing, IT/software, wholesale/retail, food and beverage, logistics — are fully open to FDI without special approval.
Restricted Industries (Special Approval Required)
| Industry | Restriction |
|---|---|
| Defense | FDI generally prohibited or strictly limited |
| Broadcasting & Telecommunications | Equity ownership caps under Broadcasting Act and Telecommunications Business Act |
| Finance & Insurance | Prior approval from financial regulators (FSC/FSS) required |
| Education (School Corporations) | Restricted establishment by foreign entities |
| Electricity & Gas | Limited entry due to public service nature |
How to Check Restrictions
- KOTRA Foreign Investment Information System: www.investkorea.org
- Foreign Investment Promotion Act, Annexes 1 & 2
7. FAQ
Q. What happens if I invest without filing an FDI report first?
You may face administrative fines of up to ₩100 million under the Foreign Investment Promotion Act, and you will be ineligible for any FDI benefits including tax incentives and the D-8 visa. Late (ex-post) reporting is possible in some cases but is strongly discouraged.
Q. Is there a minimum investment amount?
Yes. The minimum investment threshold under the FIPA Enforcement Decree is ₩100 million. The same threshold applies per investor for D-8 visa eligibility.
Q. Do I need to file both an FDI report and a foreign exchange report?
If you file through a designated foreign exchange bank, the FDI report and foreign exchange transaction report are processed together. If you file through KOTRA, you must separately complete the fund remittance and confirmation steps through a designated bank.
Q. Can I file an FDI report before the company is incorporated?
Yes. For new establishment investments, you submit the FDI report with an incorporation plan before the company is formed. Incorporation proceeds after the report is accepted.
Q. If multiple foreign investors co-invest, does each need to file separately?
Yes. Each investor must file their own individual FDI report corresponding to their respective share of the investment.
Q. How do I get approval to invest in a restricted industry?
You must obtain prior approval from the relevant regulatory authority (e.g., Defense Acquisition Program Administration, Korea Communications Commission, Financial Services Commission) before filing your FDI report.
Vision Administrative Scrivener Office provides end-to-end support for FDI registration, company incorporation, and D-8 visa applications in Korea.
📞 Tel. 02-363-2251 ✉️ E. 5000meter@gmail.com 🕐 Hours: Mon–Fri 09:30–17:30 KST | Closed weekends & public holidays
Contact us for a free initial consultation tailored to your investment plan.
This article is based on the Foreign Investment Promotion Act and related regulations as of May 2026. Laws and procedures may change. Please consult a qualified professional for advice specific to your situation.