Foreign Direct Investment (FDI)
Complete guide to establishing a foreign-invested company in Korea
What is an FDI Company?
A Foreign Direct Investment (FDI) company is a corporation established in Korea by a foreign national or foreign corporation under the Foreign Investment Promotion Act (FIPA). Foreign investment is recognized when a foreigner acquires shares or stakes worth KRW 100 million or more in a Korean corporation, or when the overseas parent company of a foreign-invested enterprise enters into a loan agreement of 5 years or more.
By registering as an FDI company, you can receive various incentives such as tax reductions, cash grants, and location support, as well as eligibility to apply for a D-8 Corporate Investment Visa.
Establishment Requirements
Minimum Investment
KRW 100 million or more (approx. USD 80,000)
Equity Ratio
10% or more of voting shares by foreign investor
Business Premises
Registered business address in Korea required
Representative Director
Both foreigners and Korean nationals eligible
Establishment Procedure
Foreign Investment Report
Submit foreign investment report to KOTRA or foreign exchange bank
Investment Fund Transfer
Transfer investment funds from overseas to Korean foreign exchange bank account
Corporate Registration
Apply for corporate registration at the court (articles of incorporation, shareholders' meeting minutes, etc.)
Business Registration
Obtain business registration certificate from the tax office
FDI Enterprise Registration
Obtain FDI enterprise registration certificate from MOTIE
D-8 Visa Application
Apply for D-8 Corporate Investment Visa at the immigration office
FDI Benefits
- Corporate and income tax reduction (up to 7 years)
- Customs duty exemption (for capital goods imports)
- Local tax reduction (acquisition tax, property tax, etc.)
- Preferential lease of state/public property
- Cash grant support (for high-tech businesses, etc.)
- Eligibility for D-8 Corporate Investment Visa
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