Yes. Granting Corporate Investment (D-8) status is restrained for people who intend to work in industries where foreign investment is restricted under the Foreign Investment Promotion Act, and in industries the Minister of Justice restricts as a matter of visa and stay management policy. The industries restricted by the Minister of Justice include speculative businesses (lottery issuing, prize contests, spinning wheel games, drawing and premium/giveaway businesses) and karaoke bar (danran jujeom) and entertainment bar (yuheung jujeom) businesses.
This guide covers what foreign investors who plan to open a shop or company in Korea and obtain D-8 should check before choosing an industry. If the industry becomes a problem after you have remitted the funds and set up the corporation, it is hard to undo, so it is best to check at the business planning stage.
Key Summary
- D-8 visas are issued, or status is changed, after reviewing grounds for disqualification and other matters
- People working in industries where foreign investment is restricted, or in industries restricted by the Minister of Justice for visa and stay management, are restrained from receiving D-8 status
- Industries restricted by the Ministry of Justice: speculative businesses (lottery issuing, prize contests, spinning wheel games, drawing and premium/giveaway businesses), karaoke bar and entertainment bar businesses
- Small individual investors below three hundred million won are subject to close review
- Individual investors below three hundred million won add proof of capital use, proof that the premises exist, and documents on business experience from the country of nationality (when needed)
- At alien registration, the investment amount, industry and whether there is a co-owner are entered in the system
- Foreigners at investment companies that have contributed to an employment-friendly policy base by creating jobs for Korean nationals receive stay conveniences and the like
1. Is D-8 granted regardless of the industry?
No. D-8 is a status for which visas are issued, or status is changed, after reviewing grounds for disqualification and other matters for essential professionals who intend to work in management or production/technology at a foreign-invested company, founders of venture businesses, corporate founders and others. The same basic principle restrains granting D-8 status for the following two kinds of industries.
- Industries where foreign investment is restricted under the Foreign Investment Promotion Act
- Industries the Minister of Justice restricts as a matter of visa and stay management policy
Whether the investment itself is allowed (a foreign investment question) and whether a D-8 stay is possible with that business (an immigration question) should be looked at separately. Completing a foreign investment report does not automatically bring a D-8 with it.
2. Which industries has the Ministry of Justice restricted?
| Category | Details |
|---|---|
| Speculative businesses | Lottery issuing, prize contests, spinning wheel games, drawing, premium/giveaway businesses |
| Part of food service businesses | Karaoke bar business, entertainment bar business |
Food service businesses that are not karaoke bars or entertainment bars, such as general restaurants or cafes, are not on this list. However, which category a business falls into can depend on the type of business report and how it is actually run, so if it is unclear, check before finalizing the business plan.
3. Does "restrained" mean it is never possible?
The wording is "restraining the grant of status and the like". Whether there are exceptions, and how far the restraint reaches, is not set out in detail, so it is hard to state firmly. If your plan has a restricted industry as its main business, it is safer to reconsider the business structure first, and the specific judgment needs to be checked case by case.
4. What is different for small investors below three hundred million won?
The same basic principle provides for close review of small individual investors below three hundred million won. Since the minimum investment for D-8 is one hundred million won, individual investors coming in with one hundred million won or more but less than three hundred million won undergo a more careful review even when they meet the requirements.
The documents also increase. Individual investors below three hundred million won additionally submit:
- Proof of how the capital was used (purchase receipts, office interior costs, Korean bank account statements, etc.)
- Proof that the business premises exist (office lease, photos of the premises, workspace and signboard, etc.)
- Documents from the country of nationality on business experience in the relevant industry or field (requested when needed)
The document list for investment in an individual business (D-8-3) also carries a note that "small investors below three hundred million won with no business experience are subject to close review". Since documents on business experience in the relevant industry or field may be requested, it is a good idea to prepare records showing how your work at home relates to the industry you plan in Korea.
5. Is the industry tracked after entry?
The essential stay management items entered in the immigration system at alien registration include the investment amount, industry and whether there is a co-owner. In particular, where a person who invested in a business run by a Korean national is a co-owner or additional owner below three hundred million won, this must be marked in the remarks.
On the other hand, foreigners at investment companies that have contributed to an employment-friendly policy base by creating jobs for Korean nationals are to receive stay conveniences and the like. Which conveniences are given and on what basis needs to be checked case by case.
6. Common problems
- Planning a bar-type business without checking whether it counts as a karaoke bar or entertainment bar
- Assuming D-8 will follow automatically because the foreign investment report is done
- Investing below three hundred million won without preparing proof of capital use and photos of the premises
- Choosing an industry with no business experience and being unable to explain why
- The industry entered at alien registration differing from the actual business
7. How A-One Certified Administrative Agent can help
At the business planning stage, we check together whether the planned industry falls under a restricted industry and, for investments below three hundred million won, what records to prepare for close review. The missions and immigration offices decide the outcome, so we cannot promise results, and we do not represent clients in lawsuits or trials (outside the scope of an administrative agent).
Frequently Asked Questions
Can I get D-8 with a karaoke bar or entertainment bar?
People who intend to run karaoke bar or entertainment bar businesses fall under the industries restricted by the Minister of Justice, so granting D-8 status is restrained.
What do speculative businesses include?
Lottery issuing, prize contests, spinning wheel games, drawing and premium/giveaway businesses.
Are general restaurants or cafes restricted too?
The food service businesses on the restricted list are karaoke bars and entertainment bars. Which category your actual business falls into needs to be checked individually.
Is an investment below three hundred million won a disadvantage?
Small individual investors below three hundred million won are subject to close review, and proof of capital use, proof of premises and documents on business experience are added.
Is there a benefit for hiring many Korean nationals?
Foreigners at investment companies that have contributed to an employment-friendly policy base by creating jobs for Korean nationals are to receive stay conveniences and the like. The details need to be checked individually.
Related Guides
- D-8 Corporate Investment Visa Guide
- Industries excluded from foreign direct investment
- Additional documents for D-8 investors below three hundred million won
Consultation
에이원 행정사사무소 (A-One Certified Administrative Agent) is an administrative office that supports document preparation and filing with the authorities. Fees vary by case and are explained during a consultation. Phone 02-309-3107 · Contact: https://investkorea.co.kr/en/contact