Indirect Investment F5

The Indirect Investment

• According to the Foreign Investment Promotion Act in Korea, the Foreign investment is classified as (1) ‘Foreign Direct Investment’, which establishes a local corporation by transferring the legal capital to Korea, and (2) ‘Foreign Indirect Investment’, which invests in the public bonds and the real estates appointed by the Korean Government by transferring foreign funds to Korea.
• The foreigners or the foreign companies are recommended to choose ‘Indirect Investment’ if they want to stay in Korea on a long–term basis for study, business, work or marriage by getting a Permanent Residence Visa F5 or a Long-Term Residence Visa F2.

Advantages of the Indirect Investment

Under the policy of actively attracting foreign investment, the foreign investment is granted incentives as well as benefits such as Permanent Residence Visa (F5), Long-Term Residence Visa (F2), Tax Deduction on Income Tax, Acquisition Tax, Registration Tax, Comprehensive Real Estate Tax, Voting Rights, Use of Express Immigration Gate, and Visa Fee Exemption if qualified.

1. Long-Term Residence Visa F2, Permanent Residence Visa (F5), or Korean Citizenship can be granted.

1. The Investors are granted a Long-Term Residence Visa F2 upon the investment and a Permanent Residence Visa F5 after 5 years. In addition, they can apply to a Korean Citizenship if qualified.

2. No additional requirements.

1. The Investors are not required any income certificate, Korean proficiency test, academic degree, or work experience or additional documents, etc.

3. Business activities are allowed.

1. The Investors are legally allowed to engage in all kinds of business activities without any restrictions unless prohibited in the Laws.

4. Free real estate transactions are guaranteed.

1. The Investors can purchase real estates such as apartments and offices without any restrictions, take out loans with the purchased real estates as collateral, and can transfer business incomes and real estate sales funds to overseas if the requirement is fulfilled.

5. Attending in a school is allowed.

1. The Investors are allowed to study in a school without a student visa or permission in Korea.

6. Signing up for the major social insurances is allowed.

1. The Investors can apply to the 4 major social insurances such as Health Insurance, Unemployment Insurance, National Pension, Industrial Accident Insurance.

7. The family members get the same benefits.

1. The Investors’ spouse, underage children, and unmarried children can receive the same benefits.

Types of the Indirect Investment

The Indirect Investment are (1) the Public Bond Investment (2) the Real Estate Investment, which are designated by the Korean Government, in order to obtain a Permanent Residence Visa F5. The Typical Indirect Investments are as follows.

	TYPE
The Indirect Investment	Public Bond Investment Immigration 1. Normal Public Bond Investment : USD1,100,000 2. Public Bond Investment for F5 : USD2,200,000 Real Estate Investment Immigration 1. Investment Amount : USD800,000 2. Tourism and Recreation Facility in 8 (eight) Designated Areas

Remark

• 1. Public Bond Investment for F5 A Permanent Residence Visa F5 is instantly granted upon the investment.
• 2. Normal Public Bond Investment & Real Estate Investment A Long-Term Residence Visa F2 is granted and then changed to F5 after maintaining the investment for 5 years.
• 3. The 8 (eight) Designated Investment Area will be changed with a prior notice.
• 4. The issued visas will be canceled in case of intermediate termination.
• 5. The investment amount will be returned 100% and F5 is remained after 5 years of the investment.

Public Bond Investment VS Real Estate Investment

• 1. Investment Amount Guarantee While the Investment Amount on the Public Bond Investment is 100% guaranteed by the Korean Government, that of the Real Estate Investment would be decreased or increased depending on its bond operation.
• 2. Investment Profits The Real Estate Investment would yield revenue due to a rise in land prices and its bond operation while the Public Bond Investment is unprofitable.

1. The Establishment Procedures for the Branch and the Liaison office are applied to that of FIC by exempting (1) the Foreign Investment Report (2) the Remittance of Legal Capital (3) Court Registration (the Branch is required).

Remark :

You can receive a F2 visa, an alien registration card, an investment certificate and other documents via express mail if you do not stay in Korea after submitting your investment report.

Inquiry for the Foreign Invested Corporations

Q & A

Is my Investment Amounts on the Public Bond Investment and the Real Estate Investment guaranteed ?

1. While the Investment Amount on the Public Bond Investment is 100% guaranteed by the Korean Government, that of the Real Estate Investment would be decreased or increased depending on its bond operation and the land prices.

I can get a Permanent Residence Visa F5 in 5 years on the Public Bond Investment and the Real Estate Investment. Is there any way to get a Permanent Residence Visa F5 faster ?

1. You can get a Residence Visa F2 upon the investment and change to a Permanent Residence Visa F5 after 5 years on the Public Bond Investment and the Real Estate Investment. if you want to get Permanent Residence Visa F5 faster than 5 years, you are recommended to choose the Public Bond Investment for F5 because you are granted a F5 upon the investment instantly.

Can I transfer the investment abroad after 5 years on the Public Bond Investment and the Real Estate Investment ?

1. Yes, you can transfer the investment amount returned after 5 years while maintaining your F5 visa.

Check Points for the Indirect Investment

1. The Name of Investment Remittance

1. The investment must be transferred in the name of the foreign investor, and the foreign investor must submit the company documents or the Family Relation Certificate if the Remittance is arranged by any company name or any family name.

2. Proof of Legal Capital Sources

1. All foreign investors are required to submit the Proof of the investment Sources. Those funds from bank loans or borrowings may not be considered as the proper investment.

3. Foreign Investment Report

1. All foreign investors are required to report their investment in advance prior to the investment remittance. Otherwise, 50% of the fund transferred in to Korea may be collected as income tax if they fail to get a investment permission and re-remit the funds to overseas.