Today, we have submitted extension applications for 6 individuals holding D8 visas. Each application was meticulously prepared, and all of them were accepted without any additional requirements.
The processing time for extension approvals varies from immigration office to immigration office. It can range from immediately granting the extension on the spot to the usual processing period of around 2 weeks.
When applying, you can submit the application at the immigration office under the jurisdiction of the company you work for, or at the immigration office under the jurisdiction of your residential address.
These days, the assessment of D8 visa applications has become more stringent.
The most common reason for initial D8 visa denials is "unclear source of funds." The origin of the investment funds for corporate investments is thoroughly scrutinized. As part of this, a 6-month bank statement is required to be submitted.
In principle, the sender and recipient's names for the transferred investment funds must match. Proxy remittances are limited to spouses and minor children; this means that even if parents send the funds, it is not considered valid.
Due to this requirement, in cases where individuals in Korea apply for a D8 visa, many individuals return to their home country to send money back in order to meet this requirement. They then return to Korea after obtaining the visa approval.
The D8 visa differs from other visas. It's not just a matter of approval or denial. Denial of the D8 visa can lead to significant financial losses. The initial registration tax paid for setting up a corporation (1,440,000 KRW per 100 million KRW for overcrowded areas) is not refunded. Moreover, costs associated with dissolving a corporation, office rental fees, and transfer fees for sending money back to the home country are all substantial expenses to consider.
From an investor's perspective, knowing the approval outcome beforehand is crucial, as the losses incurred from denial can be substantial. Personally, I believe that rather than meticulously denying applications for smaller amounts, it might be more beneficial to ease the approval process for larger investments of 300 million KRW or more.
Recently, I had the opportunity to have a conversation with the Deputy Director in charge of the Diplomatic Investment Division (D-8 Visa Division). The conclusion I drew from the discussion is that, in fact, if the investment amount is substantial, there isn't much of an issue (minimum of 300 million KRW).
However, when the investment amount is small, more detailed inquiries are made about its source.
The D8 visa is for investing in and operating a corporation or engaging in activities related to such a corporation.
※ Note that we will focus here on cases where the individual sets up a corporation and makes an investment, excluding cases where someone is dispatched under D-8-1.
However, there are many cases where individuals stay in Korea, borrow money from elsewhere with the intention of making money, obtain a D8 visa, but engage in activities unrelated to the corporation (such as illegal employment).
Therefore, it seems that stricter scrutiny is applied when the investment amount is small (100-200 million KRW) and when the applicant comes from a country with a high incidence of illegal stay.
Furthermore, when reporting foreign investment, the reported amount and the amount stated in the Foreign Investment Business Registration Certificate must match.
This aspect is monitored by immigration authorities.
As a result, if the reported amount is not transferred to the corporate capital but is used elsewhere, the likelihood of denial is high.
Hence, when the investment amount is small, one strategy could be to create a separate account for operational funds, which could be used for things like the cost of setting up the corporation.
Below is a simplified diagram of the procedure to apply for a D8 visa.
If you have any inquiries related to the D8 visa, please feel free to contact us at any time!! We offer a comprehensive service from foreign investment declaration to D8 visa issuance at a reasonable price after providing kind consultation.