Prohibited Korean Industries For Foreign Individuals And Companies Doing Business And Investing In Korea

Under the Foreign Investment Promotion Act of Korea and its enforcement decree, investments by foreign enterprises and individuals are prohibited in the following industries. Please consult with an attorney in Korea if you intend to conduct business or invest in a company in one of these industries. Please note that the lists stated below are the major prohibited industries; thus, some industries are not listed, and industries change from time to time.

Prohibited Industries for Investment by
Foreigners in Korea

Foreign Ownership Prohibited by Foreigners in Korea

• The Korean Postal Service
• The Korean Central Bank
• Korean Securities and Futures Exchanges
• Universities, Colleges, and Schools
• Private Mutual Aid Businesses
• Professional Bodies
• Religious Entities
• Certain Grain Cultivation Businesses

No More than 49% Foreign Investment Permitted

• Radio & Television Broadcasting
• Fixed-line Telephone and other Wired Communications
• Wireless Communications
• Telecommunication Businesses.

No more than 50% Foreign Investment Permitted

• Cattle breeding
• Electric Power Generation
• Newspaper and Magazine Publishing
• Domestic Transportation
• Meat Wholesale

For additional articles on Korean Trade Law, please see: IPG Legal’s Trade Law Archive.

by Sean Hayes

Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. Sean is ranked, for Korea, as one of only a few non-Korean lawyers as a Top Attorney by AsiaLaw. Sean is regularly quoted by leading international media outlets, including The Wall Street Journal, The New York Times, France 24, and Bloomberg.

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