‣(Jan. 25, 2013) The Ombudsman explained the issues to the Investment Promotion Team of South Chungcheong Provincial Government.
‣The Ombudsman explained that under the revised Commercial Act in 2012, capitalization through debt-equity swap falls under FDI with the consent of the company and can be registered through FDI notification without approval from the Court.
‣The Ombudsman confirmed that the company paid capital from the acquisition of newly issued stock through the abovementioned swap.
•Result: South Chungcheong Provincial Government well understood the explanation and advice of the Ombudsman’s Office, but concluded to make a decision for the occupancy qualification of the company with a final consultation with MOTIE, since it was an unprecedented case. Later, the Ombudsman’s Office received a reply from the Provincial Government saying that the occupancy of the company in FIZ can be considered new investment according to confirmation by MOTIE.