S. Korea : New threshold increase IISPB to obtain permanent residency via investments on June 29
Minsitry of justice in S. Korea
By Hyong-jin Kwon
Following the increase in the real estate investment visa (IISRE) amount announced in May from 500 million won (USD 390k) to 1 billion won, (USD 780k)
From June 29, 2023, the Ministry of Justice announced the improvement of F-2-12 investment in public business investment immigrant visa (IISPB).
The government also scrapped an Immigrant Investor Scheme Public Business program IISPB that allowed foreigners over 55 to retire to Korea when they invest more than W300 million.
The public project immigrant investor scheme (IISPB) is a system that grants long-term F-2 visas to foreigners and their families who have invested more than the standard amount in investment targets such as public interest funds designated by the Minister of Justice. Depending on the amount and period, you can obtain F-2 residence status or F-5 permanent residency status.
The Justice Ministry on June 29 said it has raised the investment barrier that qualifies foreigners for an F2 visa or one-year residence permit from W500 million to W1.5 billion (US$1=W1,318).
The barrier for immediate permanent residency has also risen from W1.5 billion to W3 billion with the promise of maintaining the investment for five years.
Since the public project investment(IISPB) F-2 visa was implemented 10 years ago, there has been no change in investment since the introduction of the IISPB scheme, and it is possible to acquire permanent residency by depositing for a certain period of time, and it is a visa that allows foreign investors to recover the investment principal after acquiring permanent residency, so the standard will be strengthened. There has been talk of need.
Excessive public health insurance deficit by inviting relatives with a lot of Chinese residents has debated. In addition, according to ministry data, 70.8 percent of 1,799 foreigners who invested in Korea to obtain residence permits from 2018 to 2022 were Chinese. Brokers in China often recruit people to invest in Korea in return for residency after pandemic.
In addition, the current permanent residents are allowed to vote in local elections in Korea, while Korean permanent residents have no access to voting rights in China. Permanent residents (Chinese of origin), who account for more than 70% of Chinese, have been in heated debate on their rights of public health insurance and voting over the last two weeks to rise a barrier as geopolitical and political concerns about China's cooperation with Russia have already emerged as social issues in Korea since Russia's invasion into Ukraine.
On June 29, The decree takes immediate effect.
For general investment immigration (under the age of 55),
the investment amount was increased from 500 million to 1.5 billion won, and for retirement investment immigration over the age of 55, the investment amount of 300 million was low and abolished now : the reason was that welfare costs were incurred due to the elderly.
Amendment of Immigrant Investor Scheme Public Business (IISPB) on June 29
1) Existing Policy : Foreigners aged less than 55 who invest KRW 500 million or more are granted residency (F-2) status, and if they maintain their investment for 5 years, they are granted permanent residence (F-5) status.
=> Amendment on June 29 : Increase of the investment for +1.5 billion won
granting permanent residence (F-5) status if the investment is maintained for at least 5 years.
2) Existing Policy : Immigrant Investor Scheme Public Business program IISPB that allowed foreigners over 55 to retire to Korea when they invest more than W300 million. => Amendment on June 29 : Abolished
3) Investement for retiree : ( Existing Policy) granting permanent residence (F-5) status if the investment +KRW 1.5 billion is maintained for at least 5 years.
=> Amendment on June 29 : Increase of the investment for +KRW 3 billion
In the previous post, I talked about the possibility of adjusting the amount of the F-2-12 visa, but the announcement came out sooner than expected, so we are delivering the changes right away.
There are two types of investment visas for public works: the interest-free type that guarantees the principal and the profit-and-loss type for development investment in underdeveloped areas. Our JM Administration Office provides an interest-free type that guarantees the principal. We will briefly explain the investment process.
* further information : citinaviglobal@gmail.com
