Securities Acquisition Declaration

“Securities Acquisition Declaration – This must be done correctly depending on the type of foreign exchange transaction.”

Law Office Inpyeong has been successfully advising and representing foreign non-residents on the procedures and regulations for acquiring unlisted shares or convertible bonds of Korean domestic corporations, as well as reporting and registration.

Today, we will summarise the most frequently asked questions on the acquisition of securities by foreign non-residents.

Question) What is the procedure for a foreign non-resident to acquire unlisted shares or convertible bonds of a domestic company?

Answer) If a foreign non-resident wishes to acquire unlisted or unregistered shares or interests of a domestic corporation in Korea, different procedures must be followed depending on the percentage of shares that the foreign non-resident is acquiring.

If a foreign non-resident acquires 10% or more of the unlisted shares of a domestic corporation, and the acquisition constitutes a foreign investment under the Foreign Investment Promotion Act, a foreign investment report must be filed under the Foreign Investment Promotion Act.

In this case, no notification procedure under the Foreign Exchange Transaction Regulations is required.

If a foreign non-resident acquires unlisted shares of a domestic corporation from a resident for the purpose of investment as defined in the Foreign Investment Promotion Act, but does not qualify as a foreign investment as defined in the Foreign Investment Promotion Act, the acquisition must be notified to the foreign exchange bank in accordance with the Foreign Exchange Transaction Regulations. However, if a foreign non-resident acquires bonds other than stocks or shares of a domestic corporation off-market, he or she must report the acquisition to the Bank of Korea.

If you are a non-resident who has converted a monetary receivable under a loan agreement into an equity investment, The reason for the acquisition of the securities must include a detailed description of the offset against the debt, and the accompanying securities purchase agreement must contain a set-off clause. In this case, instead of a separate setoff agreement, it can be reported as a reason letter or a securities purchase agreement containing the setoff details, and additional documents such as separate sales report materials may be required depending on the case.

The filing procedures and documentation required for non-resident acquisition of unlisted shares or convertible securities can vary in each case, making it difficult for individuals to determine where and how to file.

At Inpyeong Law Firm, our lawyers with more than 15 years of experience in financial matters directly consult with clients and provide legal advice tailored to each case, as well as filing and agency services. Please feel free to contact us as we have experience and know-how in various cases of foreign exchange transaction reporting, securities acquisition reporting, and overseas investment reporting.

[ Inquiries ] 

Collection and use of personal information
Law Office Inpyeong requests your consent to the collection and use of your personal information pursuant to Article 15 of the Personal Information Protection Act, as follows.

- Purposes of collection of use of personal information: Reply to and counseling regarding legal questions
- Items of personal information to be collected and used: (required) name, contact address, and e-mail address
- Period of retention and use of personal information: 6 months from the day of consent to collection and use

* You may refuse consent to the above items. However, without your consent, our response to and counseling regarding your questions will be inevitably limited.

관련 구성원
Picture of inpyeonglaw
02-2038-2339 /
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Recent Posts

[개인정보보호법변호사] 상품 택배 발송, 동의없이 개인정보 제공 가능?


법인 비대면실명확인, 등기부등본 열람으로 가능할지



Get The Latest Updates
뉴스레터 구독신청


인평이 발행하는 법률 정보와 소식을 받아보실 수 있습니다 🎁

개인정보 수집·이용 동의서

1. 수집항목 : 성명, 이메일주소
2. 수집, 이용목적 : 뉴스레터 등 기타 관련 광고성 정보 발송
3. 보유 및 이용기간 : 뉴스레터 신청 후 수신거부 요청 시까지