(Background)

A foreign-invested company(LLC) intended to establish core R&D facilities by using their unappropriated retained earnings and attempted to report this as a new foreign investment. 

(Grievance)

However, financial statements of LLC, which is not subject to external audits, were not accepted as valid documents in the process; thereby causing problems in the company's plan. 

(Resolution)

A home doctor from OFIO thoroughly reviewed the company's financial statements and the mother company's consolidated financial sheets to confirm the accuracy and credibility of the data.

OFIO conducted research about accounting for unappropriated retained earnings [Commercial Act], accounting standards, and compliance with the company's articles of association. 

With research outcomes, OFIO consulted with MOTIE whether to recognize the company's documents as valid. 

(Result)

The documents from the aforementioned company are duly accepted by acknowledging that their proving documents are legitimately prepared by a credible agent in accordance with accounting standards → The company's reinvestment using their unappropriated retained earnings are approved and reported as foreign investment. 

It is expected that, when another LLC is reporting foreign investment using their unappropriated retained earnings in the future, this case can be a supporting precedent in accepting financial statements of LLC as a valid evidence.