Direct Investment

Head office, Foreign Investment Center and branch office of Kiupbank conduct all transactions related to foreign
investment. Also, Foreign Investment Center helps foreign investors for investment consulting, preparation of
contract and reporting form, procedures for establishment of company.

Type of foreign direct investment

Acquisition of newly issued stocks
  • Foundation of new incorporation.
  • Investing for capital increase of domestic company or FIE
Acquisition of stocks of a existing company
  • Acquisition of existing stocks of domestic shareholder of company or FIE
  • Direct contract between foreign investor and domestic a shareholder.
  • Acquisition of more than 10% of the total shares traded in the market opened by the Korea Stock Exchange.
Investment amount and rate
  • In case FIE takes 5 years or longer-term loan from the parent company overseas or its affiliate.
Acquisition of stocks by merget
  • ‘In case foreign investor convert reserve fund or revaluation reserves of FIE to capital contribution.
  • In case foreign investor acquire stocks of the new or existing company by merger and acquisition of FIE
  • Acquisition of stocks of FIE by buying, inheritance, capital increase, and donation from foreign investor
  • Incase of converting from a convertible bond, exchanging from an exchangeable bond, and underwriting a certificate of stock deposit

Investment amount and rate

Investment amount and rate
  • Minimum Investment Amount : minimum amount (KRW 50 million) is stipulated in the regulation.
  • Investment Ratio : It should hold more than 10% of the total shares to be deemed as Foreign Invested Enterprise (FIE). There is an exceptional case that deems it to be FIE, even with less than a 10 percent stake in the business where:
    Contracts agreed between you and your counterpart stipulates that you are able to participate in the management,
    regardless of the stakes you have.

    Long-term contracts (5 years or more) for buying or selling raw materials or products
    Contract of transfer or introduction of the technology or joint R & D