1.1Concept of Foreign Direct Investment
Foreign Direct Investment (FDI) refers to investment to acquire a lasting economic interest with a corporation of the Republic
of Korea or a company run by a national of the Republic of Korea and includes the following forms of investment:
acquiring stocks or shares of a Korean company, a foreign parent company providing long-term loans with a maturity of 5
years or longer to a foreign-invested company with its stake and foreigner’s contribution to non-profit organizations. It is
regulated by the Foreign Investment Promotion Act and other related laws. FDI differs from portfolio investment, which is
the purchase of stocks by foreigners with a view to realizing short-term financial returns.