🇰🇷 South Korea · Investment
Foreign investment rules, incentives, investment promotion agencies, and restricted sectors.
Quick answer
South Korea actively attracts FDI through Invest Korea (KOTRA) under the Foreign Investment Promotion Act. Most sectors are open with a short restricted list; you file a foreign-investment notification and can access cash grants, tax reductions and foreign-investment zones. Capital moves freely with reporting under the Foreign Exchange Transactions Act.
Foreign investment in Korea is promoted by Invest KOREA (KOTRA), with incentives in designated zones. Most sectors are open.
- Invest KOREA (KOTRA) supports foreign investors end-to-end.
- Foreign-investment zones offer tax and other incentives.
- A few sectors are restricted or require approval.
Step-by-step
- 1
Check the investment regime
Korea welcomes FDI under the Foreign Investment Promotion Act; Invest Korea (KOTRA) provides one-stop support.
- 2
Check restricted sectors
Most sectors are open; a short list restricts or partly limits foreign ownership (e.g. some media, utilities, defence).
- 3
File the foreign-investment notification
Submit a foreign-investment notification (to a bank or KOTRA), then incorporate and register the company for tax and business.
- 4
Access incentives and zones
Consider cash grants, tax reductions, and foreign-investment zones or free economic zones for qualifying projects.
- 5
Handle capital and repatriation
Capital and profits move freely, with reporting under the Foreign Exchange Transactions Act for inbound and outbound flows.
- 6
Meet reporting and protections
Keep FDI, foreign-exchange and tax filings; Korea’s legal system and investment treaties protect investors.
Checklist
- Foreign Investment Promotion Act + KOTRA support
- Restricted-sector check (short list)
- Foreign-investment notification + incorporation
- Cash grants + tax reductions + FI/free zones
- Foreign Exchange Transactions Act reporting
- FDI + FX + tax filings
- Investment-treaty protection
- CTA to .com/.ai for AI-assisted planning
Official authorities
- Invest KOREA (KOTRA)
National investment promotion agency.
Frequently asked questions
What is a foreign-investment notification?
A filing under the Foreign Investment Promotion Act (to a designated bank or KOTRA) that registers your investment and unlocks incentives.
What incentives are available?
Cash grants for high-tech or job-creating projects, tax reductions, and location benefits in foreign-investment and free economic zones.
Can I repatriate profits from Korea?
Yes — capital and dividends move freely with reporting under the Foreign Exchange Transactions Act (withholding tax may apply).
Official-information aggregation, not legal advice. Always verify on the authority's own site.
Government portals
- Government of Korea — Korea's integrated government portal — policy, administrative services, e-government
- Korea Immigration Service (HiKorea) — Visas, residence status changes, work permits, and alien registration in Korea
- National Tax Service (NTS) — Korean income tax, corporate tax, VAT filing; annual comprehensive tax return for foreigners (May); foreign taxpayer incentive lookup