Foreign Investment Report Filing for a Japanese Corporation Acquiring Shares in a Korean Company
Case Overview
- Client Information
- Corporate / Business Entity
- Case Details
-
Decent Law Firm’s International Practice Group represented a Japan-based company in completing the foreign investment reporting process under the Foreign Investment Promotion Act for the acquisition of shares in a Korean company.
The client, a Japanese corporation with no existing office or entity in Korea, sought to acquire management control of a Korean business through a share purchase from a local partner.
Under Korean law, a foreign investment report must be completed prior to the remittance of investment funds.
However, the process involves a complex set of documentation requirements, including notarization and apostille certifications, many of which must be prepared in the investor’s home jurisdiction. As such, a structured and end-to-end legal approach was required.
Decent's Strategy
We prepared a comprehensive checklist of all required documents for the foreign investment report, clearly distinguishing between documents to be prepared in Japan and those that could be handled in Korea.
For each document, we specified notarization requirements, apostille certification needs, and the number of copies required—ensuring that the client could proceed without errors or delays during preparation.
✔️ Power of Attorney Structuring and Full-Scope Representation
We drafted the Power of Attorney to meet the strict review standards of KOTRA, carefully defining the scope of delegated authority.
This included authority for submission of the investment report, document filing and collection, communication with relevant authorities, and handling of any supplementation requests. Based on this, Decent’s International Practice Group carried out the entire reporting process on behalf of the client.
✔️ Alignment of Reporting Timeline with Investment Closing
We designed the reporting timeline by working backward from the planned fund remittance and share acquisition schedule.
Key factors such as document preparation in Japan, apostille processing time, and the review period for the investment report in Korea were all considered to ensure that the transaction closing proceeded without disruption.
Results & Significance
The client completed the foreign investment report in line with the planned closing schedule, enabling timely remittance of funds and acquisition of shares as intended.
While foreign investment reporting may appear to be a procedural step, delays caused by missing documents or unmet notarization requirements can directly impact fund transfers and deal timelines.
For foreign investors—particularly those without an existing presence in Korea—the interplay between local and overseas documentation, notarization, and apostille requirements makes it essential to structure the process in advance and manage the timeline strategically.
If you require legal support for foreign investment reporting or cross-border M&A transactions in Korea,
contact Decent Law Firm’s International Practice Group.
Legal Consultation
All consultations are conducted after a case review by the attorney in charge.
Providing the key details of your case in advance will help you receive more specific advice.
