Today, let's briefly look at the general procedure for a foreigner to make a direct investment in Korea and receive a D-8 visa. If a foreigner is residing in Korea, they can make the foreign investment report themselves, or if they are not in Korea and plan to come to Korea with a D-8 visa from their home country, they can write a power of attorney, have it notarized locally, and send it to Korea for the attorney to act on their behalf.
Firstly, the applicable visas are corporate investment (D-8-1) and individual business owner (D-8-3).
(D-8-1) refers to essential professionals who intend to work in management, production, or technical fields of a South Korean corporation that is a foreign investment company according to the Foreign Investment Promotion Act. Here, only established corporations are applicable, and people hired domestically are excluded.
(D-8-3) refers to essential professionals who intend to work in management, production, or technical fields of a business run by a South Korean citizen (individual) according to the Foreign Investment Promotion Act. Similarly, people hired domestically are excluded.
The procedure for a foreigner's direct investment in Korea is generally as follows
① Foreign investment report → ② Account opening → ③ Transfer of investment funds → ④ Business preparation (corporate registration and business registration) → ⑤ Registration of foreign investment company → ⑥ Visa application.
Let's look at each step in order~~
1. Foreign Investment Report
① Requirements
Investment of at least 100 million won per person and acquisition of at least 10% of shares
※In the case of D-8-1, even if you cannot own more than 10% of the total shares with an investment of 100 million won or more, it is possible if you own shares and have signed a contract for officer dispatch or appointment.
② Required documents
Investment report (each bank, KOTRA), passport copy, power of attorney for proxy report if applicable, notarized partnership agreement if in partnership
③ Issuance of foreign investment report certificate
2. Account Opening
Open a bank account for receiving investment funds in the investor's name
- Corporation: 100 million won or more (200 million won or more for 2 people)
- Individual: 300 million won or more (600 million won or more for 2 people)
3. Transfer and Exchange of Investment Funds
① In case of foreign currency transfer - Sender-Recipient-Investor's name (must be the same) - Purpose of funds: Investment Fund ② In case of carrying in foreign currency cash
- Must report to Incheon Airport Customs as business funds and must receive a foreign currency declaration certificate. ③ Receive a foreign currency purchase certificate after exchange
- Corporation: Corporate registration (court), business registration (tax office)
- Individual: Business registration (tax office)
4. Business Preparation (District Office)
① Obtain permission from related agencies for each business type if necessary
ex) Food business permission from the jurisdictional district office for a restaurant
② Activities for business such as office lease
③ The use of investment funds and receipts must match
5. Business Registration (Tax Office)
① Issuance of business registration certificate (inquire at the jurisdictional tax office)
② For corporations, corporate registration (handled by a judicial scrivener)
6. Registration of Foreign Investment Company (Domestic Bank)
Issuance of foreign investment company registration certificate (initial investment reporting bank)
ㅇ Documents to submit
- Foreign currency purchase certificate, business registration certificate, passport
- Foreign currency declaration certificate (in case of cash carry-in)
- Additional documents may be required if necessary
7. Visa Application (Immigration Office)
o Apply for D-8, D-9 visa
o The period of stay varies depending on the amount of investment and business performance.
▶ General training (D-3), visit employment (H-2), non-professional employment (E-9), others (G-1) are allowed to change to corporate investment (D-8) qualification when investing 300 million won or more in Korea
▶ For D-8 visas, in cases where the investment amount is small (100 million won),
the period of stay is granted within 1 year at the initial application,
and for individual investors with an investment amount of less than 300 million won,
documents required for the relevant business sector and the use of capital may be required.
It takes about two months to complete all these procedures.
The content posted above is a brief explanation of the general procedure, but in reality, most cases are more complicated than the procedure above. If you are a foreigner planning to invest in Korea, or a business owner looking to attract foreign investment, please feel free to contact us with any questions!!
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