ANNOUNCEMENT 11 Jan 2014

In January 2014, the government of Republic of Korea announced changed incentives for foreign investors entering the country.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Investment Policy Monitor No. 12 - Unctad
http://unctad.org/en/PublicationsLibrary/webdiaepcb2014d1_en.pdf

Consulate General of the Republic of Korea in New York
http://usa-newyork.mofa.go.kr/english/am/usa-newyork/bilateral/trade/index.jsp

FDI, globalisation and development
http://www.i-jibe.org/achive/2006fall/1-Dunning.pdf

FDI of EU and USA and Employment Effects in Korea
http://yeri.yonsei.ac.kr/new/kje_data/2011/vol1/2011vol106.pdf

2011 Investment Climate Statement - Republic of Korea
http://www.state.gov/e/eb/rls/othr/ics/2011/157359.htm


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 SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A