Invest KOREA

When a foreigner who is an individual investor establishes a corporation in Korea and registers another foreigner who is not an investor as an executive in the corporate register and invites that foreigner to Korea, it constitutes a foreign-inested company’s direct employment of a foreigner in Korea, and therefore the foreigner is not eligible for a D-8 visa.

When a foreigner who entered Korea with a single-entry visa or without a visa establishes a foreign-invested company and then intends to change his/her status of stay to Business Investment (D-8), he/she should visit the immigration office having jurisdiction over his/her place of stay or KOTRA’s Foreign Investor Support Center and receive permission of change to Business Investment (D-8) status or apply for a visa at an overseas diplomatic mission of Korea after departing from the country. ※ For the documents required for applying for a permission of change of status of stay, refer to Q204. ◎ However, when a Chinese national with a Short-Term Visit (C-3) visa enters the country, he/she cannot receive a permission of change of status of stay to Business Investment (D-8) if he/she is a part of a group tour or is an individual visitor for purely tourism purposes, or has a visa classified as Industrial Trainee (D-3), Non-Professional (E-9), Vessel Crew (E-10), Miscellaneous (G-1), Working Holiday (H-1)*, or Working Visit (H-2).

When a foreigner stays in Korea for over 90 days from the date of entering Korea, he/she must apply for alien registration at the immigration office having jurisdiction over his/her status of stay within 90 days from the date of entry. A single-entry visa terminates after one entry. In this regard, if a foreigner enters Korea with a D-8 visa with a period of stay of one year and leaves Korea without registrering as an alien, he/she should have a visa reissued from an overseas diplomatic mission of Korea. ※Effective period of visa and sojourn – Effective period: The period during which it can be used is indicated on the visa, such as three months or one year. The period is calculated from the visa issuance date. Single-entry visas allow one entry/departure, while multiple-entry visas allow unlimited number of entries/departures within the effective period. – Sojourn period: The permitted sojourn period after entering the country is written on the visa, such as 30 days, 90 days or one year. The calculation of the period of sojourn in terms of days shall begin from the day following the date of entry, and months and years shall be calculated based on the calendar.

In order to acquire qualification for issuance of a Business Investment (D-8) visa, the applicant should invest in a corporation of the Republic of Korea (this includes establishment of a new corporation) and the investment amount should be at least KRW 100 million. The foreigner should own at least 10/100 of the voting shares or total capital of the invested corporation (Article 2(2 1 of the Enforcement Decree of the Foreign Investment Promotion Act) ◎ However, a D-8 visa is granted when an individual business entity invests at least KRW 100 million in a company that is managed by a Korean national and engages in joint management of the company (D-8-3: the foreigner must be registered as a joint representative together with the Korea national on the business registration certificate). The Korean national who is the joint representative must have business funds of at least KRW 100 million. ◎ If a foreign individual invests independently an amount of at least KRW 300 million and establishes an individual business, he/she can apply for an International Trade (D-9) visa.

In order to establish and operate a company in Korea, a foreigner should invest in Korea pursuant to the Foreign Investment Promotion Act and acquire a Business Investment (D-8) or International Trade (D-9) visa from an overseas mission of the Republic of Korea. If the foreigner enters Korea without a visa for unavoidable reasons, he/she must receive a permission for change of status of stay from the immigration office having jurisdiction over the place of stay.

A foreigner who is staying in Korea for 91 days or more must register as an alien at the immigration office having jurisdiction over his/her place of stay, within 90 days from the date of entry into Korea. ◎ Just as Korean citizens are issued a resident registration card, foreigners are issued an alien registration card. The card is issued for the safe management of foreigners staying in Korea by clarifying their residence and status of stay. – A foreigner who intends to stay more than 90 days from the date of entry in Korea (holders of long-term visas) – A foreigner staying without being granted a status of stay, and a foreigner staying without being granted a status of stay due to any other ground such as loss or renunciation of the nationality of Korea while staying in Korea shall register as an alien within 60 days from the date on which such ground occurs. – A foreigner who is born in the Republic of Korea and stays more than 90 days in the country shall register as an alien within 90 days of the date of birth – A foreigner who is staying in Korea for more than 90 days from the date of entry into Korea by obtaining permission to change his her status of stay ※ Alien registration is exempted for holders of Diplomat (A-1), Government Official (A-2), and International Agreement (A-3) visas. – Within 90 days of the date of entry for foreigners who intend to stay in Korea for more than 90 days – On being granted a status of stay or receiving a permission to change status of stay (immediately) ※ Foreigners who do not register as an alien within the above period are subject to penalty. – Passport – Alien registration application form – Fee: KRW 100,000 for permission for change in status of stay; KRW 30,000 for issuance of certificate (holders of Business Investment (D-8) visa are exempt) ※ When registering as an alien after acquiring a Business Investment (D-8) visa from overseas, a certificate of foreign-invested company registration, a certificate of business registration, and other documents necessary when changing the status of stay should be submitted.

Those who are eligible shall be as follows: – A foreign investor who invested KRW 100 million or more to establish and operate a foreign-invested company – A person who is dispatched as an indispensable professional specialist from the overseas parent company (or a third country’s branch) of a foreign-invested company established in Korea and intending to engage in management, business administration or technology (those who are dispatched as management or a professional technician/engineer shall be included, but those who are hired in Korea shall be excluded) ※ "Indispensable professional specialist" refers to executives and senior managers that operate and manage a foreign-invested company, and professional technicians/engineers with advanced and specialized background and knowledge who have been dispatched to provide relevant technological assistance. ◎ Therefore, the representative executive from the investor's side engaging in the business and management of a foreign-invested company that has been established domestically, as well as technicians engineers that have been dispatched because of the inevitable need for technological support, are indispensable professional specialists. On the other hand, persons that provide general administrative work, technicians engineers that can be replaced with domestic hires, or direct service providers are not considered indispensable professional specialists.

In order to facilitate the domestic business activities of foreign investors in Korea, KOTRA’s Foreign Investor Support Center (FISC) provides one-stop services to Business Investment (D-8) visa holders. In particular, officials dispatched from the Minister of Justice process visa and sojourn matters on the same day of application if there are no problems with documentation and evaluation. ※Visa and sojourn services provided by FISC – Granting of status of stay, permission of change of status of stay, alien registration (re-issuance), permission of re-entry, permission of extension of period of stay, report of change in alien registration matters, report of change of place of stay, permission of activities outside the ones permitted under the current status of stay, addition or change of workplace, certificate of entry & exit, certificate of alien registration (including perusal of information) ◎ FISC also provides services for Dependent Family (F-3) members of Business Investment (D-8) visa holders. The services include alien registration, permission of change of status of stay, permission of extension of period of stay, permission of re-entry, and issuance of certificate of entry & exit and alien registration certificate.

When calculating the period of stay, the date of entry is not included, and the period is calculated from the day following the date of entry. When the date of expiration of the period of stay falls on a public holiday, the following day shall be the expiration date. If it falls on a Saturday, two days later (Monday) shall be the expiration date. ◎ For example, when a foreigner has entered the country with a Tourist/Transit (B-2, 30 days) visa on March 31, 2020, the effective period of the visa shall begin from the following day, April 1, and the expiration date of the stay shall be April 30. However, since April 30 is a public holiday (Buddha's Birthday, Thursday), the expiration date shall be the following day, May 1 (Friday). If April 30 (Buddha's Birthday) is not a Thursday but a Friday (a public holiday), the day after the following day (May 2, Monday), shall be the expiration date. ◎ On the other hand, if the foreigner has entered the country on March 31, 2020 with a Tourist/Transit (B-2, 3 months) visa, the effective stay period shall be calculated in months, and the expiration date shall be June 30, 2020. If the expiration date is a public holiday, the following day shall be the effective expiration date, while if the end of the visa period lands on a Saturday, the following Monday shall be the effective expiration date. This is because Korea’s Civil Act prescribes that if a period has been fixed by the week, month or year, the first day of such period shall not be included in the computation, and it shall be computed according to the calendar.

Korea’s status of sojourn system acts as a basic management system for foreigners' immigration and stay. A status of stay is a classification of the status of foreigners in Korea and the social activities that they can engage in, and acts as a standard for the management of foreigners' stay in Korea. ◎ As long as a foreigner who entered Korea under a certain status of stay maintains his/her permitted activities and status, his/her stay in Korea is guaranteed for the permitted period of stay. However, if a foreigner changes his/her status of stay or intends to engage in an activity other than the ones permitted under his/her current status of stay, a permission of the Minister of Justice should be obtained in advance. ◎ Most countries prescribe certain standards for foreigners’ status of stay for convenient management of foreigners entering and staying in the country, and designate foreigner’s status of stay based on such standards. ◎ A status of stay is marked with a combination of capital letters of the alphabet and numbers, and Article 12 of the Enforcement Decree of the Immigration Act (attached Table 1: Short-term stay; attached Table 2: Long-term stay) classifies the qualifications for each status of stay and the scope of permitted activities. ◎ In Korea, a short-term stay is a period of 90 days or less, and a longterm stay is a period of 91 days or longer. Foreigners intending to stay in Korea for 91 days or longer should complete alien registration within 90 days from the date of entry.