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FDI: Entry and ownership rule
On 5 August 2020, the Korean Ministry of Trade, Industry, and Energy (MOTIE) implemented amendments to the Enforcement Decree of the Foreign Investment Promotion Act, citing national security concerns, leading to changes in the country's FDI regime.
According to the new FDI framework, MOTIE can now request that the Minister of National Defense or other heads of relevant agencies submit a review request to the Foreign Investment Committee on the grounds that "there is a 'high' possibility of leakage of core national technologies and where a foreigner’s acquisition of de facto control over the management of an existing domestic company by acquiring its stocks, etc. may threaten national security." Once the review is conducted and the results are returned to MOTIE, the Ministry has 90 days to make a decision regarding the national security concern.
Notably, relevant amendments to the Foreign Investment Promotion Act were announced in the past (please, see related state acts).
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