What is the procedure under the Foreign Investment Promotion Act when a foreign-invested company carries out capital increase without consideration?
A. If a foreign investor acquires stocks, etc. free of charge from the relevant foreigninvested company, the foreign investor shall notify the acquisition of stocks, etc. under Article 5 (2) 2 of the Foreign Investment Promotion Act within 60 days from the acquisition of stocks. (The amount of foreign investment does not increase because there is no infusion of new investment funds.)
- The foreign-invested company should file for registration of alteration. Although there is no increase in the actual amount of investment by the foreign-invested company, the total par value of the stocks held by the foreign-invested company rises due to an increase in the number of stocks. This increase should be reflected in the registration.
- Documents certifying the acquisition of stocks such as the statement of resolution of a shareholder meeting on the capital increase without consideration, a certificate of corporate registration and a shareholder register issued after the execution of the capital increase should be submitted.
For further inquiries, please contact the Investment Consulting Center
Call📞 +82–1600–7119 or Visit🖥️ www.investkorea.org
TIP. Living in Korea
Korea 101: Seoul Metropolitan Subway Map
*This article is extracted from Invest KOREA information center, 2023
#ForeignInvestment #CapitalIncrease #Regulations #InvestKorea #ConsultingCenter