Flow Chart of Foreign Direct Investment in South Korea

(In case of acquiring of new stock, etc.)

1. Investment Consulting before the setup

   * Confirmation of possible business type in Korea (The classification table of Korean Standard
     Industry)

   * Confirmation of investment approval from relevant law and regulation in Korea

   * Decision-making of office rental or acquisition in Korea

   * Decision-making of FDI or not (Over KRW 100 million per person, over 10 % Share)

★ In case of no applicable to FDI, file the foreign transaction by Foreign Currency Transaction Act

(Stock Acquisition Report).
        It's more favorable when one of the stockholder are opened bank account.

* In case of staying in Korea: Individual – Passport

         Corporate – Passport of CEO(Representative Director), Registration of Incorporation
                              (Certificate of Company registration, Certificate of Business License, other 
                               official letter)

 * Agent : POA for investment filing which is included the notarized bank account open,
                  certificate of bank balance and fund transfer (notarized by Korean Embassy or
                  Apostille depend on bank)

           Individual – Passport

         Corporate – Passport of CEO (Representative Director), Registration of Incorporation
                              (Certificate of Company registration, Certificate of Business License, other
                                official letter)

           Due to financial crime of the local voice phishing, it's quite difficult to open account via
           delegation or POA. Therefore it's more convenient of foreign investor directly visit to Korea
           and then open an account & issuance of bank balance.

2. Preparation of two (2) copies of Local investment Declaration both Korean and English

    (Foreign Investment Report by acquisition of the new share, etc.) – refer to attachment

   * (Investment Business type – Fill out the detailed code in the classification table of Korean
      Standard Industry)

Investment ratio    - more than 10 % each case

Investment amount - more than KRW 100 million each case (changed from 50 M to 100 M
                                  in 2010)

   * In case of the agent of investor, need to prepare the Power of Attorney (“POA”)

3. Investment Declaration

   * Place of filing: Report to the HQ or branch of Foreign Exchange Bank in Korea or Kotra (Korea
                       Trade-Investment Promotion Agency)

     (Business type Confirmation of the Investment Declaration)

     (Document Review for the requirement of Investment Declaration)

* In case of staying in Korea: Individual – Passport

         Corporate – Passport of CEO(Representative Director), Registration of Incorporation
                              (Certificate of Company registration, Certificate of Business License, other
                               official letter)

* Agent : POA for investment filing which is included the notarized bank account open, 
                  certificate of bank balance and fund transfer (notarized by Korean Embassy or
                  Apostille depend on bank)

            Individual – Passport

         Corporate – Passport of CEO(Representative Director), Registration of Incorporation
                              (Certificate of Company registration, Certificate of Business License, other
                                official letter)

    * If the paid-in capital (or investment) is remitted from home country in advance, Company must
       be filed the Investment Declaration before the currency translation in Korea

4. Distribution of Investment Declaration Approval: take 2 ~ 3 days (different from bank)

   - Bank for Foreign Investment report (Korean Exchange Bank) – to get the account for 
       the remittance of PIT.

   - In case PIT is less than KRW 1 billion and investor (promoter) has a own account, it's possible 
       to receive the promoter's account.

 5. Remittance of Paid-in capital from outside of Korea

   (Please remit to HQ or branch of Foreign Exchange Bank in Korea from home country)

   * Mandatory fill-out items when you remit

     ① Beneficiary Bank Name: ex, Korea Exchange Bank (   ) Branch.

     ② Remitter Name: Foreign Investor

     ③ Beneficiary: New Company Name or Business Partner Company Name

     ④ Purpose of Fund: “(New Co. name ) company set-up or Investment Fund in Korea“

                   “This fund is for the establishment of (New Co. name). co"

     (*)Remittance Timing of investment fund

        - Generally foreign investors have to remit just after the distribution of Investment Declaration

 approval. However in case the fund is arrived before the Investment Declaration Approval, 
             the fund can't translated to Korean Won
        

         ( Continued )