Korean Company Incorporation and D-8 Visa: Why 'Direct Setup' Leads to Rejection

There are a significant number of inquiries regarding D-8 visa rejections even after establishing a corporation in South Korea and depositing the investment funds. There is a clear legal reason why this outcome is repeated even after obtaining a Foreign-Invested Enterprise (FIE) registration certificate.

Legal Core

Under the Foreign Investment Promotion Act, foreign investment generally requires an investment of 100 million KRW or more and the acquisition of 10% or more of voting shares (Article 2 of the Enforcement Decree of the same Act).

However, separate from this, the D-8 (Corporate Investor) residency status is granted to essential core personnel engaged in the management or administration of a 'foreign-invested enterprise' under the Immigration Act.

Recently, courts have repeatedly ruled that the D-8 visa applies only when a foreigner invests in a Korean corporation that was already established or in the process of being established prior to the investment. A company directly established and managed by a foreigner is viewed under the scope of a Trade Management (D-9) visa rather than D-8.

In other words, even if you complete the foreign investment report and incorporation, the immigration review is a completely separate hurdle. It is not the incorporation itself, but 'in which corporation and in what sequence the investment was made' that determines the visa.

What to Check Now

• First, verify whether your investment structure is an investment in an existing corporation or a direct establishment. If it is a direct establishment, it is necessary to review the D-9 requirements, including import/export performance.
• Second, the foreign investment report must, in principle, be completed prior to the investment (Article 5 of the Foreign Investment Promotion Act).
• Third, since investment remittance must be in the investor's own name, it is advisable to prepare evidence of the remittance path in advance. If you are currently staying in South Korea, you must also plan the application timing by calculating backward from the visa expiration date.

Reflecting on our experience in handling similar cases, there is a significant difference in results when the visa requirements are reviewed at the investment structure design stage, rather than trying to contest a refusal after the notice has been issued.

Corporate incorporation, foreign investment reporting, and visa acquisition are not separate processes but a single, integrated design. Consultation is available in Korean, English, Chinese, and Japanese. Please request a preliminary review from Kim & Hyun Law Office before executing your investment.