Pursuant to the Foreign Exchange and Foreign Trade Act (FEFTA), prior notification is required for investments in designated business sectors, which are subject to certain restrictions on foreign investment from the perspective of national security, protection of advanced and sensitive technologies, public health, and the security of critical infrastructure.

Examples of designated business sectors include:

• Software development and data processing
• Telecommunications
• Apparel manufacturing
• Retail electricity business
• Wind and solar power generation
• Aquaculture and fishery processing
• Manufacturing of aircraft engine components and drones
• Manufacturing of industrial machinery for semiconductor production
• Manufacturing of pharmaceuticals, vaccines, and raw materials for the treatment of infectious diseases
• Manufacturing of medical devices such as ventilators and dialysis machines
• Manufacturing of equipment for rare earth extraction and resource exploration vessels

Whether a business falls under a designated business sector is determined not only based on the purposes stated in the Articles of Incorporation, but also on the actual business activities conducted.
Even if such business is not described in the Articles of Incorporation, prior notification is required if the company actually engages in a designated business.

Furthermore, even if a company does not initially engage in a designated business at the time of incorporation, prior notification must be submitted when such business activities are commenced at a later stage.