Threshold Amount Raised to 700 Million KRW... Ministry of Justice Drastically Overhauls Investment Immigration System

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[Asia Economy Reporter Kim Hyung-min] The Ministry of Justice plans to significantly reform the 'Investment Immigration System,' which grants residence and permanent residency qualifications to foreigners who invest a certain amount in designated investment targets announced by the Minister of Justice and maintain that status for a certain period, next year.

On the afternoon of the 22nd, the Ministry of Justice held the 10th Investment Immigration Council meeting to discuss ways to address issues in the foreign investment immigration system and decided to improve it in the first half of next year.

The Investment Immigration Council is composed of 11 members, including the Vice Minister of Justice as chairman, directors-level officials from related ministries such as the Immigration and Foreign Policy Headquarters, and private experts.

At this meeting, the council first discussed raising the standard investment amount for real estate and public interest project investment immigration to 700 million KRW. This considered the fact that the consumer price index rose about 22% compared to 2010, and the producer price index increased by more than 16% this year. They also referred to cases of advanced countries with higher standard amounts than Korea.

Furthermore, the council discussed a comprehensive reform plan for the real estate investment immigration system, including raising the investment amount. The Ministry of Justice explained, "The investment amount and requirements for the designated areas under the already announced real estate investment immigration system will be maintained as is until the expiration of the designated period, and the plan to raise the standard amount for the public interest project investment immigration system is expected to be applied within the first half of next year."

Additionally, verification of foreign investors' criminal records and sources of investment funds will be strengthened. The timing for confirming foreign investors' criminal records will be moved forward from the time of acquiring permanent residency to the time of investment, i.e., when acquiring residence status, to enhance prior verification of investors, and a procedure to verify the source of investment funds will be introduced.

To prevent abuse of the investment immigration system as a means of employment, the scope of accompanying family members eligible for stay benefits along with the investor will be reduced to spouse and minor children.

Kang Sung-guk, Vice Minister of Justice, said, "Through the improvement of the investment immigration system, we will actively attract foreign investment while minimizing the possibility of system abuse, and continue to cooperate with related organizations to contribute to enhancing national competitiveness, such as regional economic development and strengthening the competitiveness of small and medium-sized enterprises."

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