IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 11 Mar 2014 | Removal date: open ended
Still in force

FDI: Financial incentive

On 11 January 2014, an amendment of the Foreign Investment Promotion Act of the Republic of Korea entered into force. The change introduces the option of a joint venture with a foreign partner.
While joint investments were impossible prior to the change, the new regime allows them under the following conditons:

  • The domestic partner is the majority owner of the stock issued by the joint venture (50 percent or more);
  • The foreign partner must hold 30 percent or more of the stock issued by the joint venture;

 
The change becomes effective 11 March 2014 and could affect the United States, Japan, the UK, the Netherlands, Germany, and Belgium --- the countries with the highest FDI stock in the local economy.

AFFECTED COUNTRIES

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