Korea, Republic of

Korea, Republic of

Strengthens the security review of foreign investments

26 Aug 2024

On 26 August, the Republic of Korea announced the entry into force of an amended enforcement decree to the "Foreign Investment Promotion Act". The amendments expanded the scope of the FDI screening regime by adding "National High-Tech Strategic Technologies" to the list of sectors where foreign investment is restricted. Foreign investments in companies possessing "National High-Tech Strategic Technologies" will now undergo security reviews, aiming to prevent them from undermining the Republic of Korea’s competitiveness in high-tech industries.

If a foreign investor does not voluntarily report their investment, the Ministry of Trade, Industry and Energy will have the authority to conduct a review, if the investment is suspected of endangering national security.