(1) The terms used in this Act are defined as follows: <Amended on Jan. 27, 2016; Feb. 4, 2020; Dec. 22, 2020>
1. The term "foreigner" means an individual with a foreign nationality, a corporation established in accordance with a foreign law (hereinafter referred to as "foreign corporation"), or an international economic cooperative organization prescribed by Presidential Decree;
2. The term "national of the Republic of Korea" means an individual who has the nationality of the Republic of Korea;
3. The term "Korean corporation or enterprise" means a corporation established in accordance with the Acts of the Republic of Korea or a domestic enterprise registered as a business entity;
4. The term "foreign investment" means any of the following:(a) Where a foreigner holds stocks or shares (hereinafter referred to as "stocks, etc.") of a Korean corporation or enterprise (including a Korean corporation in the process of establishment; hereafter in this Article the same shall apply), as prescribed by Presidential Decree, by any of the following methods in order to establish a continuous economic relationship with the Korean corporation or enterprise, such as participating in the management of the Korean corporation or enterprise, in accordance with this Act:(i) Acquisition of stocks, etc. newly issued by the Korean corporation or enterprise;(ii) Acquisition of previously issued stocks or shares (hereinafter referred to as "existing stocks, etc.") of the Korean corporation or enterprise;(b) A loan with maturity of not less than five years (based on the loan maturity prescribed in the first loan contract), which is provided to the relevant foreign-invested company by any of the following entities:(i) The overseas parent company of the foreign-invested company;(ii) A company that has a capital investment relationship prescribed by Presidential Decree with the company prescribed in (i);(iii) A foreign investor;(iv) A company that has a capital investment relationship prescribed by Presidential Decree with the investor prescribed in (iii);(c) Where a foreigner contributes to a non-profit corporation pursuant to this Act in order to establish a continuous cooperative relationship with the corporation which satisfies the standards prescribed by Presidential Decree in terms of research personnel, facility, etc. and which is a Korean corporation or enterprise in the field of science and technology;(d) Where a foreign-invested company uses its unappropriated earned surplus for the purposes prescribed by Presidential Decree, such as the creation or extension of its factory facilities (in this case, the foreign-invested company shall be deemed a foreigner under this Act, and the amount of foreign investment shall be the amount calculated by multiplying the amount used and the foreign investment ratio under Article 5 (3));(e) Other contributions to a non-profit corporation by a foreigner, which the Foreign Investment Committee established under Article 27 (hereinafter referred to as the "Foreign Investment Committee") recognizes as a foreign investment in accordance with the standards prescribed by Presidential Decree regarding the business contents, etc. of the non-profit corporation;
5. The term "foreign investor" means a foreigner who holds stocks, etc. or has contributed as prescribed by this Act;
6. The term "foreign-invested company or foreigner-contributed non-profit corporation" means a company in which a foreign investor has invested, or a non-profit corporation to which a foreign investor has contributed;
7. The term "operator of establishments built to improve a foreign-investment environment" means any person who operates establishments prescribed by Presidential Decree, including schools and medical institutions for foreigners, in order to improve a foreign investment environment;
8. The term "object of investment" means any object in which a foreign investor invests in order to hold stocks, etc. under this Act, and which is any of the following:(a) A means of international payment as defined under the Foreign Exchange Transactions Act or a means of domestic payment incurred by the exchange of such a means of international payment;(b) Capital goods;(c) Proceeds from the stocks, etc. acquired under this Act;(d) Industrial property rights, intellectual property rights prescribed by Presidential Decree, other technologies corresponding thereto, and rights pertaining to the use of such rights or technologies;(e) Where a foreigner closes his or her own branch company or office in Korea and converts the branch company or office into another domestic corporation, or where a domestic corporation, the stocks of which are held by a foreigner, is dissolved, the residual property to distributed to the foreigner upon liquidation of such branch company, office, or corporation;(f) The amount of redemption of loans referred to in subparagraph 4 (b) or of other loans from foreign countries;(g) Stocks prescribed by Presidential Decree;(h) Real estate located in Korea;(i) Other means of domestic payment prescribed by Presidential Decree;
9. The term "capital goods" means machinery, apparatus, facilities, equipment, parts, and accessories as industrial facilities (including vessels, motor vehicles, aircraft, etc.), livestock, breeds or seeds, trees, fish and shellfish which are necessary for the development of agriculture, forestry, and fisheries, raw materials and reserve stocks deemed necessary by the competent Minister (referring to the head of the central administrative agency in control of the project concerned; hereinafter the same shall apply) for the initial test (including pilot projects) of the facilities concerned, and the fees for transportation and insurance required for the introduction thereof and other know-how or service necessary therefor;9-2. "Repatriating enterprises in a non-Seoul Metropolitan area" means enterprises that establish or expand their places of business in an area other than the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act, among repatriating enterprises eligible for assistance selected pursuant to Article 7 of the Act on Assistance to Korean Off-Shore Enterprises in Repatriation;
10. Deleted. <Jan. 27, 2016>
(2) For the purposes of this Act, the provisions of this Act concerning foreigners shall apply to an individual prescribed by Presidential Decree among nationals of the Republic of Korea who holds permanent residency in a foreign country. <Amended on Jan. 27, 2016>[This Article Wholly Amended on Jan. 30, 2009]