Can a Foreigner Get D-8 as a Sole Proprietor? Without a Korean Corporation or a Korean Co-Owner, Look at the D-9 Individual Business Route

A business that a foreigner has simply registered alone as a sole proprietorship is hard to treat as an investment target for Corporate Investment (D-8). D-8 assumes either a Korean corporation that is a foreign-invested company (investment in a corporation, D-8-1) or a business run by a Korean national (investment in an individual business, D-8-3). To run a business alone without incorporating, the Trade and Business (D-9) individual business requirements, which call for bringing in at least three hundred million won of foreign capital, need to be reviewed.

This guide is for foreigners, and their families, who want to start a small trading, wholesale or retail, or service business in Korea on their own. Some people start operating during a short-term stay believing that registering a business with invested money will lead to D-8, and then find the status change blocked. So we first set out the differences between three routes.

Key Summary

D-8-1 requires a Korean corporation whose establishment is completed; D-8-3 requires investing in a business run by a Korean national and being listed as co-representative with a Korean on the business registration
There is a court decision holding that a foreigner's sole proprietorship is neither a Korean corporation nor a business run by a Korean national, and so is not a foreign-invested company
To run a business alone: the D-9 foreign individual business owner route, for example bringing in at least three hundred million won of foreign capital and completing business registration
Short-term leases (under 6 months), residential-only leases and online-only business premises are not accepted as business premises in principle
The maximum stay period granted at one time for D-9 is 2 years

1. Can a foreigner's sole proprietorship be a D-8 investment target?

It is difficult. D-8-1 covers essential personnel of a Korean corporation that is a foreign-invested company, and only corporations whose establishment is completed qualify. For D-8-3, the investment target must be a business run by a Korean national, the investment must be at least one hundred million won for 10% or more of total capital, and the investor must be listed as co-representative with a Korean on the business registration.

In one case, a foreigner who entered on short-term business status invested fifty million won in a wholesale and retail business for auto parts and home appliances and applied to change to D-8, but was refused. The court held that a foreign-invested company under the Foreign Investment Promotion Act must be a Korean corporation or a business run by a Korean national; there was no basis to recognize the business as a corporation, and the applicant was a foreigner, not a Korean national, so the business could not be a foreign-invested company. The higher courts upheld the outcome. However, this was a ruling on an individual case, so whether the same conclusion applies to your business depends on its structure and needs to be confirmed with immigration case by case.

2. Which routes are available, then?

Route	Business form	Key requirements
Investment in a corporation (D-8-1)	Incorporate a Korean company	At least one hundred million won invested, 10% or more of voting shares, or an executive dispatch or appointment contract
Investment in an individual business (D-8-3)	Join a business run by a Korean national as co-representative	At least one hundred million won invested, 10% or more of total capital, the Korean co-owner's business funds at least one hundred million won
D-9 foreign individual business owner	Sole proprietorship by the foreigner	Business registration after bringing in at least three hundred million won of foreign capital, or an individual business that invested at least three hundred million won under the Foreign Investment Promotion Act and holds an investment enterprise registration

If you want to work alone but the investment is below three hundred million won, incorporating and meeting the D-8-1 requirements is another option you can review. Note, however, that D-8 investors below three hundred million won must submit additional documents such as proof of how the capital was used, and are subject to closer review.

3. What are the D-9 foreign individual business requirements?

The change of status for foreign individual business owners covers:

New business owners: individuals who bring in at least three hundred million won of foreign capital under the Foreign Exchange Transactions Act and regulations, complete business registration under the Value-Added Tax Act, and will manage a company or carry on a for-profit business in Korea
Individual business owners who invested at least three hundred million won in Korea under the Foreign Investment Promotion Act and received an investment enterprise registration

This type is also referred to as the individual business owner category (D-9-4) when requirements such as fund inflow are applied. For new business owners, the three hundred million won must be foreign capital brought in under the foreign exchange laws and regulations.

4. Which documents are submitted?

Application, passport, fee
Business registration copy, business license (if applicable), investment enterprise registration (if held)
Joint business agreement original and copy, and proof of the co-owner's annual income (if applicable)
Proof of business funds brought in (remittance confirmation, foreign exchange purchase certificate, customs declaration, export declaration from the home country's customs, etc.)
Proof of how the capital was used (purchase receipts, office interior costs, Korean bank account statements, etc.)
Proof of business performance (only if business was conducted on a short-term visa before the status change)
Proof of residence, and proof that the business premises exist (lease, photos of the premises, office space and signboard, etc.)

Short-term leases (under 6 months), residential-only leases and online-only premises are not accepted in principle, with exceptions only where unavoidable due to the nature of the business (for example, a warehouse lease).

5. From which statuses is a direct change not allowed?

A change to foreign individual business owner is not allowed from: Technical Training (D-3), Non-professional Employment (E-9), Seafarer (E-10), Miscellaneous (G-1), general and group tourism (C-3-2), medical tourism (C-3-3), Working Holiday (H-1) and Visiting Employment (H-2). For Working Holiday (H-1), the restriction applies only to nationals of countries whose agreements do not allow a change of status (France, Ireland, the United Kingdom).

Individual business owners who were already staying with D-8 status before this system took effect may qualify even with less than three hundred million won invested. If they lost D-8 status, for example because the re-entry period expired, they must meet the three hundred million won capital requirement like new business owners.

6. What must be maintained to keep staying?

The maximum stay period granted at one time for D-9 is 2 years. At extension, a foreign individual business owner must prove that the business is operating normally, with documents such as an income amount certificate, tax payment certificate and certificate of tax payment record. Certificates must be issued within 30 days, and additional documents may be requested if the tax record is low or absent. Where applicable, proof of employing Korean nationals continuously for 6 months or more (withholding records, employment insurance, etc.) is submitted, and at alien registration a pledge to employ Korean nationals is submitted where applicable.

7. Common problems

Registering as a sole proprietor during a short-term stay and applying to change to D-8
Raising part of the three hundred million won in Korea and failing the foreign capital requirement
Submitting a residential studio or an online shop address as the business premises
Securing premises with a short lease of under 6 months
Submitting tax certificates older than 30 days at extension

8. How A-One Certified Administrative Agent can help

Based on the business plan and the amount of funds, we help decide which structure fits, incorporation (D-8-1), co-ownership with a Korean national (D-8-3) or the D-9 individual business route, and check the fund inflow, premises and documents. The immigration office decides each case, so no result can be promised, and we do not handle litigation or court representation (outside the scope of an administrative scrivener).

Frequently Asked Questions

Can a foreigner get D-8 by registering a business alone?

D-8 assumes investment in a Korean corporation or a business run by a Korean national, so a foreigner's sole proprietorship is unlikely to qualify. A court has ruled to the same effect.

How much must be brought in to run a business alone?

The D-9 foreign individual business route covers, for example, those who bring in at least three hundred million won of foreign capital under the foreign exchange rules and complete business registration.

Can I register the business at my home address?

Residential-only leases, short-term leases under 6 months and online-only premises are not accepted as business premises in principle. Exceptions exist only where unavoidable due to the nature of the business.

Can I change status right after entering as a tourist?

A change to foreign individual business owner is not allowed from some statuses, such as general and group tourism (C-3-2) and medical tourism (C-3-3), so a procedure after leaving Korea may need to be considered.

How long can the stay be granted at one time?

The maximum stay period granted at one time for D-9 is 2 years.

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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