On May 2, 2025, an amendment to the Foreign Investment Promotion Act (FIPA) was introduced before the National Assembly.  The bill was referred to the Standing Committee on Industry, Trade and Energy for review on September 2, 2025 and seeks to establish a clear legal foundation for screening foreign investments for national security purposes, aligning Korea with comparable regulatory frameworks in the United States (CFIUS), the European Union (FDI Screening Regulation), and Japan (Foreign Exchange and Foreign Trade Act).  

The proposed amendment marks a notable shift from Korea’s traditionally open investment regime toward a more security-focused framework.  While intended to safeguard national interests, the provisions are expected to have substantial implications for foreign private equity funds (PEFs) and cross-border M&A transactions involving Korean entities.