Korean Job Discussion Forums

[jdog2050]

https://www.facebook.com/photo.php?fbid=346810915440235&set=o.158270997644095&type=1&theater

So the MKE is looking to hear people's thoughts on their planned raising the FDI from $100,000 to $300,000.

If you're someone who was looking to start a business in Korea, this is your chance to tell them how absolutely retarded this is.

I've already sent out my email to them. My suggestion was that the FDI investment needs to be stratified. Why does everyone pay the same? Why would a high school graduate who plans to open an import/export company pay the same as a college grad with an excellent startup idea? What about criminal records? What about fluency in Korean and/or history of work in Korea? All of that should be taken into account!

Also, from their open letter it seems like a lot of the issue is actually people gaming the system in order to live here illegally. Well...duh, track them more. Don't throw out the baby with the bathwater. If someone is not showing continual profits tell them to shape-up or ship out.

[Otherside]

Wasn't the amount just $50,000 a few years ago?
Talk about keeping up with inflation.

Their post does make a valid point.
How many jobs will you create with a $100,000 investment, not many in most cases. The same with all those import/export things...their contribution isn't much. I do agree that you might miss out on a great start-up, but then again, why would someone choose Korea specifically, and would the $300,000 create such a large barrier? (Not that I've heard of any great foreigner start-ups in Korea, through the FDI programme)

As for the people using the D visa to stay illegally, I have little doubt. I remember when it was 50,000, a lot of people were toying with the idea of using that visa and then just teaching privates on the sly.

[nora]

I have a few friends who started a restaurant together. The D visa is like slavery - immigration would only issue it for a few months at first, then for about 6 months, then a year, then after that it would be a few years at a time. BUT, if your papers were not in order, if you were not meeting the revenue/tax targets, they would not renew the visa. This makes sense - the targets were not that difficult to meet and why would you want people sucking off (ha) society and not contributing (which is what you're doing if you didn't meet the targets - they were really pretty low).

I don't see anything wrong with this. If you want to set up a business here, you have more than one route. Earn the F visa through points instead of getting a D visa. No minimum investment for that. Plus, even when the limit was 50 mil, my friends had way more than that to start, which was all needed. I think there should be some flexibility, but I favor setting the bar higher than too low.

[Stan Rogers]

Good idea.

There are too many foreigners in Korea now anyway.

[jdog2050]

[nora]

But how does one game the F visa?

It's clear - age, income, education, korean skills, other miscellaneous items and you get the visa. The F visa lets you live here and do whatever you want. If you want to teach privates, you can (with registration/paying taxes). You want to be homeless, you can. You want to start a business, you can. There is no "gaming" to be done there.

The business investor visa is much more limited. You start a business, you run the business, you pay taxes on its income. On the other side, you don't need to be any age, or speak any korean, or volunteer or have a degree. It's a balancing act.

I think that it's a fair trade - to get the F visa, you need to put forth some effort. To get the investor visa, you have to put forward some capital.

My personal experience - with my friends here, and with family members back home - with owning a business are that it takes a lot. Lots of time, money, energy. Korea doesn't want people starting businesses that fail, leaving local korean suppliers on the hook, not getting paid, which is a serious problem if you leave the bar too low.

Yes, some people get crowded out of the market. But to me, it seems a small price to pay for a larger benefit.

Just my two cents.

[big_fella1]

Korea hasn't been very successful in attracting FDI. Perhaps the view that foreigners making money here is wrong is a large factor in this.

Make it 300 million, make it a billion the reality is anything larger than a microbusiness will be crushed here.

[coralreefer_1]

Just my humble opinion, but I think the amount needed should depend on the type of business/industry involved.

For example..the OP mentioned a trade company. I don't think it is important whether it be a high school dropout, or even a PhD who opens the company. What I do think IS important is that it is a business that does little to diversify the economy. Seriously, there are almost as many trade companies out there as there are Hyundai cars on the roads.

While I do agree that 300,000 is a bit much, I think an investor who is bringing something to the economy that is somewhat unique, and can otherwise offer consumers something that isn't already in abundance should be given a lower minimum investment, and also support in the form of tax breaks for say..the first 2 years of operation. Things such as how many jobs (locals) they will employ, what part of the country they intend to set up shop (preference given to areas not so developed)..local resources such as shipping/marketing/distribution they will draw upon..etc are things that at least to me would be a better way to gauge minimum investment amounts rather than a blanket number for all.

Note that I am not referring to Joe Blow NET opening their own hagwon after working here for some years..but more thinking about a business like opening a Taco Bell chain in Busan, or a Godiva Chocolates store in downtown Daegu.

[dongjak]

Isn't there some way around the 300,000won though? In October when I went to immigration with my husband (who is on a D-, they said if he doesn't have 100,000 (They had just raised it from 50) at his next renewal then he could switch to a D-9 visa which would still allow him to have his export business and stay in Korea. Which kind of doesn't make sense if their goal is to get rid of people who are are on D-8s but not actually conducting business if they just offer them a different visa....