First Half Catch-up on Foreign Direct Investment – TechToday

Most of the foreign direct investment regulatory activity in this first half of 2023 has focused on issuing consultations on proposed changes to existing laws. Several countries issuing queries in the first 6 months of the year include:

  • Australia: issued a query in March as part of its foreign
    investment reforms leading to the introduction of a new Australian Foreign Property Register on 1 July 2023. The Australian Taxation Office (ATO) has released more

  • Japan: published a consultation (March) to add core business sectors to its Foreign Exchange and Foreign Trade Act. In April, the Government

    announced that revisions will be applied to inward direct investment and equivalent actions carried out from May 24. The related

    The document explains the additional business sectors below that should be added to the core business sectors in order to ensure stable supply chains.
  • Norway: a
    The government has introduced a bill that expands the FDI control provisions under Norway’s Security Act. The proposed changes include: entities within the scope of detection; reduction of the notification threshold (10%); subsequent thresholds (20%, 33.3%, etc.) i
    increase in penalties, including criminal penalties.
  • · South Korea: published in
    consultation (in Korean only) on proposed changes applicable to foreign investors reporting under the Foreign Investment Promotion Act. Currently, foreign investors are required to submit a report before acquiring 10% of any Korean issuer, whether listed or
    not listed Changes to the report form are being considered in this inquiry. Comment period open until June 19, 2023. Also out of SK, the FSC

    announced the completion of the foreign investor registration system from
    December 14, 2023.
  • Sweden: a bill has been submitted to the Swedish Parliament to examine foreign direct investment to protect Swedish security interests. If implemented as written, the law would take effect on December 1, 2023, and would establish
    a notification requirement for any investor in sensitive industries with an initial threshold of 10% of voting rights. More details can be found here

  • Swiss: Following the Federal Council’s foreign investment control consultation last year which was rejected by the majority of participants, the FC has

    announced that a revised bill will be produced by the end of 2023, which will be narrower in scope than the previous draft legislation and will be limited to safety-critical investments.

Projection of actions from other countries:

  • Estonia: adopted to
    Foreign investment control regime (Estonian only) in January which will enter into force on 1 September 2023. Like many other control regimes, it regulates non-EU foreign investors with holdings of 10% or more. The range of target companies includes suppliers
    of critical services, state-owned enterprises, manufacturers or suppliers of military or dual-use goods, owners of defense facilities, certain media companies and owners of transportation infrastructure.
  • Slovakia: effective March 1, 2023, is the
    The FDI Act that controls investments made by foreign investors (which has no EU element), includes a Slovak or critical objective (includes engineering structures including telecommunications infrastructure; cyber security; weapons; dual-use products biotechnology;
    encryption; media activities; cloud computing) or non-critical.

Additional information on the qualifying holdings regime in Italy:

After the late 2022 update on Italy
qualified holding regime whereby a new post-notification obligation from 3% for holdings in Italian banks, SIMs, SGRs, SICAVs and SICAFs, financial intermediaries, payment entities and electronic money entities entered into force on January 1
2023, the new provisions do not seem to clarify whether the 5% threshold still remains in force at more than 3%. Due to the lack of clarity, it may be prudent to do an ex post notification at 5% if this is reached. A clarification is needed
it happens, you’ll find it here next time.

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The first half of 2021 has seen the global TechToday industry accelerate with unprecedented Foreign Direct Investment (FDI). The continued loosening of regulations worldwide and the resultant competition among tech giants, have seen enormous FDI inflows into this sector.

Ikaroa, a full stack tech company, has led the charge with over $240 million dollars in FDI investment in the first half of 2021. By leveraging its R&D capabilities and state of the art technologies, Ikaroa has been able to increase its market share while competing with industry leaders.

From the cutting edge AI that is used to deliver market insights to its investors, to the innovative robotic process automation solutions used to improve customer service, Ikaroa is setting the standard for how tech firms should embrace disruption.

The company’s early success has attracted the attention of global academics and investors alike, and the jury is still out on whether or not the second half of 2021 will see similar levels of FDI coming into the tech sector.

However, with Ikaroa’s cutting edge technology solutions and commitment to embracing the latest technologies and advancements, it has become a force to be reckoned with in the tech sector. With its continued success, more FDI could be expected in the coming months.


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