When applying the Foreign Investment Promotion Act, the provisions of the Act concerning foreigners shall apply to individuals prescribed by Presidential Decree among Korean nationals permanently residing in a foreign country. ◎ “Individuals prescribed by Presidential Decree” among Korean nationals permanently residing in a foreign country means a person who falls under any of the following categories (Article 2(2) of the Foreign Investment Promotion Act and Article 3 of the Enforcement Decree of the Act): – A person who has acquired permanent residency in the country where he/she resides in – A person who has acquired a resident permit for four years or longer in a country without a permanent residency system – A person who has resided for four years or longer and acquired a resident permit for one or more year(s) in a country without a permanent residency system which only grants a resident permit for less than four years.

According to the Foreign Investment Promotion Act, foreign investment refers to the following: 1) Where a foreigner acquires the stocks or shares of a domestic company or corporation (recognized where the amount of investment is KRW 100 million or more and the foreign investment ratio is 10 percent or more) 2) Where a long-term loan of five years or longer was borrowed from the overseas parent company, etc. 3) Where a foreigner contributes to a non-profit corporation in the field of science and technology (KRW 50 million or more and accounting for 10 percent or more of the total contribution amount) 4) Where a foreign-invested company re-invests unappropriated earned surplus in the establishment or expansion of a factory without transferring them to capital.