OBS_VALUE: As a default rule, the FDI under the Foreign Investment Promotion Act (FIPA) is subject to filing a report by the investor. The 2024 amendment to the Enforcement Decree of the FIPA has allowed the authorities to review foreign investments suspected of endangering national security, even if the foreigner does not voluntarily report it. Foreign investment will be reviewed by relevant authorities to determine whether it poses an obstacle to the maintenance of national security when a foreign investor acquires de facto control of the company and the transaction results in one of the cases: (a) there are concerns that production of defense materials may be hindered; (b) it is highly likely that goods will be subject to export approvals or licenses, or technologies will be diverted for military purposes; (c) there are concerns regarding public disclosure of state secrets; (d) there are concerns that international efforts by the United Nations or other organizations to maintain international peace and security may be severely and substantially hindered, or (e) it is highly likely that national core technology will be divulged. In 2024, foreign investment in companies possessing national high-tech strategic technologies were added to the scope of security review. The 2022 Regulations on Operation of Security Review Procedures for Foreign Investment establish standards for security review and stipulate specific criteria for the deliberation of the expert committee on security risk, such as (1) threat factors related to foreign investors, (2) vulnerable factors of investment targets, and (3) impact on national security. Factors to consider for evaluation of the security risk include: possibility of domination of domestic industry, trade relations, etc. by foreign investor; the importance of the products and services produced by the investment target company and whether the assets and facilities held are critical infrastructure or core assets; impact on the level of technology in competing countries; impact on supply chains, industry, and national economy; impact on trade, trade, international investment, etc. See also, Act on the Prevention and Protection of Divulgence of Industrial Technology, 산업기술의 유출방지 및 보호에 관한 법률, in force from 28 April 2007, last updated on 21 August 2024, Articles 9 and 11-2, https://www.law.go.kr/법령/산업기술의유출방지및보호에관한법률See also, Partial Amendment of the Enforcement Decree (Draft) of the FIPA, Ministry of Trade, Industry and Energy, https://www.motie.go.kr/kor/article/ATCLa1cb24c71/62886/view#