Foreign investment to be expanded

From next year, foreign nationals will be allowed to invest in intellectual property and real estate.

The Industry-Energy Ministry disclosed that a revision to the Foreign Investment Promotion Law was approved at the vice ministers' conference and will be submitted to the current regular session of the National Assembly with a plan to implement it next year.

According to the revision bill, foreigners will be permitted to invest in Korean intellectual property, real assets and some other sectors within the framework of foreign direct investment (FDI), although they are heretofore allowed to invest in capital goods like cash and machinery and industrial rights such as patents.

Foreigners will be also permitted to make direct investments such stock swaps as a means of encouraging mergers and acquisitions (M&A).

In the case of foreigners swapping their CBs, DRs, EBs, BWs and others with Korean enterprises' stock, they will be recognized as direct foreign investment and accorded equal privileges like tax exemption or reduction.

Even if two or more foreigners invest a combined total of more than $100 million in similar businesses, their investments will be recognized as legitimate. Currently, a foreigner is required to invest more than $100 million.