The Foreign Investment Ombudsman system was first introduced on October 26, 1999, under the Foreign Investment Promotion Act, in an aim to resolve grievances of foreign-invested companies operating in Korea.
Foreign Investment Ombudsman is commissioned by the President on the recommendation of the Minister of Trade, Industry and Energy following deliberation by the Foreign Investment Committee. The Foreign Investment Ombudsman also heads the grievance settlement body, which supports the duties of Ombudsman.
Function
Foreign Investment Ombudsman and his grievance resolution body collect and analyze information concerning the problems foreign firms experience, request cooperation from and recommend implementation thereof to relevant administrative agencies, propose new policies to improve the foreign investment promotion system, and carry out other necessary tasks to assist foreign-invested companies in resolving their grievances.Legal Basis
[Legal Basis for Foreign Investment Ombudsman System]
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Paragraph ①, ②, ⑩, Article 15-2 of the Foreign Investment Promotion Act
- ① In order to resolve complaints from foreign investors and foreign-capital invested companies, the Foreign Investment Ombudsman shall be commissioned from among the persons of abundant learning and experience in foreign investment business.
- ② The Foreign Investment Ombudsman under paragraph (1) (hereinafter referred to as "foreign investment ombudsman") shall be commissioned by the President, after the recommendation of the Minister of Trade, Industry and Energy and deliberation by the Foreign Investment Committee.
- ⑩ The Korea Trade-Investment Promotion Agency shall set up a grievance handling organization within its jurisdiction in order to support the duties of the Foreign Investment Ombudsman.
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Paragraph ②, Article 21-4 of the Enforcement Decree of the Foreign Investment Promotion Act
- ② A Foreign Investment Ombudsman shall be the head of the grievance committee established under Article 15-2 (10) of the Act (hereinafter referred to as "grievance committee").
[Legal Basis for the Function of the Office of the Foreign Investment Ombudsman]
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Paragraph ③–⑥, Article 15-2 of the Foreign Investment Promotion Act
- ③ Where necessary for resolving complaints from foreign investors and foreign-capital invested companies, the Foreign Investment Ombudsman may request the head of a relevant administrative agency and foreign-investment related agency (hereinafter referred to as "relevant administrative agency, etc.") to render necessary cooperation in the following subparagraphs. In such cases, the head of the relevant administrative agency, etc. in receipt of such request shall comply therewith, unless extenuating circumstances exist:
- 1. Giving explanations to a relevant administrative agency, etc. or submitting data in accordance with the standards prescribed by Presidential Decree;
- 2. Stating opinions of related employees, interested persons, etc.;
- 3. Requesting cooperation for site visits.
- ④ Where deemed necessary after resolving the complaints from foreign investors and foreign-capital invested companies, the Foreign Investment Ombudsman may recommend the heads of relevant administrative agencies and public agencies to take corrective measures on related affairs.
- ⑤ Upon receipt of recommendations made under paragraph (4), the heads of relevant administrative agencies and public agencies shall, in writing, notify the Foreign Investment Ombudsman of the grievance-handling results within a period as prescribed by Presidential Decree.
- ⑥ Where the heads of relevant administrative agencies or public institutions fail to implement recommendations to take corrective measures made under paragraph (4), the Foreign Investment Ombudsman may request them to submit matters concerning such recommendations to the Foreign Investment Committee as an agenda.
- ③ Where necessary for resolving complaints from foreign investors and foreign-capital invested companies, the Foreign Investment Ombudsman may request the head of a relevant administrative agency and foreign-investment related agency (hereinafter referred to as "relevant administrative agency, etc.") to render necessary cooperation in the following subparagraphs. In such cases, the head of the relevant administrative agency, etc. in receipt of such request shall comply therewith, unless extenuating circumstances exist:
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Paragraph ②–⑤, Article 21-3 of the Enforcement Decree of the Foreign Investment Promotion Act
- ② A Foreign Investment Ombudsman shall perform the following duties:
- 1. Investigation and handling of complaints from foreign investors and foreign-capital invested companies;
- 2. Preparation of policy measures for improving a foreign investment system and recommendation on the implementation thereof to the relevant administrative agencies and public agencies;
- 3. Other necessary matters for handling complaints from foreign investors and foreign-capital invested companies.
- ③ "Standards prescribed by Presidential Decree" in Article 15-2 (3) 1 of the Act means any of the following:
- 1. Where it is necessary for investigating whether a foreign investment-related system complies with international practices or standards;
- 2. Where it is necessary for tackling difficulties experienced by foreign-capital invested companies in their management or improving the related systems;
- 3. Where it is necessary for improving the living conditions of foreign investors and foreigners working for foreign-capital invested companies.
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④ A recommendation for corrective measures under Article 15-2 (4) of the Act (hereafter referred to as "recommendation for corrective measures" in this Article) shall be made in a document specifying the following matters:
- 1. Current status and problems of related Acts and subordinate statutes, institutions and policies;
- 2. Details of recommendation for corrective measures;
- 3. Matters recognized by the Foreign Investment Ombudsman as being necessary, such as the reply deadline for related administrative agencies and public agencies.
- ⑤ "Period prescribed by Presidential Decree" in Article 15-2 (5) of the Act means 30 days after receipt of a recommendation to take corrective measures from the Foreign Investment Ombudsman pursuant to Article 15-2 (4) of the Act.
- ② A Foreign Investment Ombudsman shall perform the following duties:
[Legal Basis for Operation of the Grievance Settlement Body]
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Paragraph ②, ③ and ⑤, ⑧, Article 21-4 of the Enforcement Decree of the Foreign Investment Promotion Act
- ② A Foreign Investment Ombudsman shall be the head of the grievance committee established under Article 15-2 (10) of the Act (hereinafter referred to as "grievance committee").
- ③ The head of the grievance committee may request cooperation from a relevant administrative agency or a foreign-investment related agency to settle complaints from foreign investors and foreign-capital invested companies. In such cases, the agency upon receipt of a request for cooperation shall present the results of resolving complaints or its opinion on such matters within seven days after receipt of the request.
- ⑤ In order to efficiently settle the complaints from foreign investors and foreign-capital invested companies, the head of the grievance committee may designate the staff in exclusive charge of settling complaints for each region or foreign-capital invested company, and may administer such staff.
- ⑥ Where an employee belonging to the grievance committee hears opinions or visits a site under Article 15-2 (3) of the Act to support the duties of the Foreign Investment Ombudsman, he/she shall carry a certificate of identification indicating his/her authority and produce it to interested persons.
- ⑦ The head of the grievance committee shall analyze the results of settling complaints raised by foreign-capital invested companies on a quarterly basis and report them to the Minister of Trade, Industry and Energy within one month after expiration of each quarter.
- ⑧ Except as otherwise expressly provided for in paragraphs (2), (3), (5), (6) and (7), matters necessary for the organization and operation of the grievance committee shall be determined by the president of the Korea Trade-Investment Promotion Agency following deliberation by the Foreign Investment Committee.