Foreign-Invested Company (FIC) Incorporation in Korea

1. What is a Foreign-Invested Company?

A Foreign-Invested Company (FIC) in Korea is established under the Foreign Investment Promotion Act (FIPA).

Key Requirements

To qualify as a foreign investment under FIPA:

  • The investor must be a foreign individual or foreign entity
  • Minimum investment amount: KRW 100 million
  • Equity ratio: Acquisition of 10% or more of voting shares, or Less than 10% if the investor participates in management (e.g., appoints an executive)
  • [Practical Note] A branch office or liaison office does not qualify as a Foreign-Invested Company.

2. Overview of the Incorporation Process

The standard process is as follows:

  • Foreign Investment Notification
  • Remittance of Investment Funds
  • Company Incorporation Registration
  • Business Registration
  • Registration of Foreign-Invested Company

3. Step-by-Step Procedure

Step 1. Foreign Investment Notification

Filing Authority

  • KOTRA (Korea Trade-Investment Promotion Agency), or
  • A designated foreign exchange bank in Korea

Required Documents (Typical)

  • Foreign Investment Notification Form
  • Identification of the investor
  • Power of attorney (if filed by an agent)
  • [Practical Note] Key items such as company name, business purpose, and investment amount should be determined in advance.

Step 2. Remittance of Investment Funds

The foreign investor must remit the investment funds from overseas to Korea.

Procedure

  • Open a temporary foreign investment account at a Korean foreign exchange bank
  • Transfer the investment amount in accordance with the notification
  • Obtain a Certificate of Remittance (Deposit Confirmation) from the bank

Step 3. Company Incorporation Registration

Major Steps

  • Preparation of Articles of Incorporation
  • Appointment of directors and auditor (if applicable)
  • Capital payment
  • Determination of the head office address
  • Filing of incorporation registration with the court registry

Key Filing Documents

  • Application for incorporation registration
  • Articles of Incorporation
  • Certificate of remittance of investment funds
  • Letters of acceptance of office by directors/auditor

Step 4. Business Registration

After incorporation, the company must register with the competent tax office.

Typical Documents

  • Articles of Incorporation
  • Office lease agreement
  • Shareholders’ register
  • Identification of the representative direc

Step 5. Registration as a Foreign-Invested Company

Filing Authority

  • KOTRA or the foreign exchange bank

Required Documents

  • Application for registration of foreign-invested company
  • Corporate registry extract
  • Business Registration Certificate
  • Shareholders’ register
  • Upon completion, a Certificate of Foreign-Invested Company Registration will be issued.

4. Practical Checklist

When establishing a Foreign-Invested Company, pay special attention to:

  • Minimum investment of KRW 100 million
  • At least 10% equity ownership (or management participation)
  • Consistency between investor name and remitter
  • Apostille/legalization of foreign corporate documents (if investor is a foreign company)
  • Korean address for the registered office
  • Proper Korean translations of foreign documents

5. Typical Timeline

Estimated total: approximately 2 weeks

  • Foreign Investment Notification: 1–2 business days
  • Fund Remittance: 1–3 business days
  • Incorporation Registration: 3–5 business days
  • Business Registration: 1–2 business days
  • FIC Registration: 1–2 business days