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Foreign Investment Promotion Act

In order to acquire real estate for profit (office buildings, factory sites, houses for rent, etc.), a foreign-invested company must be registered under the Foreign Investment Promotion Act before the land acquisition report stipulated in the Foreigner's Land Acquisition Act is made. A foreign-invested company with at least 50% of its shares held by a foreigner (a foreign corporation) is categorized as a foreigner under the Foreigner's Land Acquisition Act and is thus required to make a land acquisition report under the Foreigners Land Acquisition Act. A company with less than 50% of shares held by a foreigner, however, is not categorized as a foreigner and is considered a Korean entity, and can acquire land without making a report.

Also, the Foreign Investment Promotion Act provides exceptions to foreign-invested companies or operators of establishments built to improve foreign-investment environment in the sales and lease of government and public owned properties, and permits leases or sales under private contracts. When land is sold to a foreign-invested company and it is recognized that the purchaser is unable to pay in a lump sum, then at an annual interest rate of 4% or less, the payment date can be postponed or the payment can be made in installments.

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