Korean Job Discussion Forums

[alphalfa]

What is the required visa status for a foreign co-owner in a business here in Korea?

A friend of mine has decided to become a partner in a language institute with a Korean friend here in Incheon. My friend at the moment has a tourist visa. His Korean friend called me last night asking me whether it is possible to get an E2 visa for the foreign partner WITHOUT LEAVING the country. I told him that should his foreign partner work as a language teacher at their new academy then he must leave the country to get an E2 visa which would make him legally able to work in Korea.

Does the fact that my friend is a contributing financial partner to the business require that he have an E2 visa? Is there another kind of visa which he can apply for?

BTW My friend will be teaching students at the new academy.

Thanks.

[Wangja]

[Wangja]

A D8 is quite simple to obtain and here's summary of what your friend needs to do:-

Make a "Direct Foreign Investment" into Korea of 50,000,000 KRW, and this needs to be done in a specific manner. The receiving bank will give specific advice on the wording that must appear on the transfer of funds. They will issue a formal ��Certificate of Foreign Investment��.

Set up a business (limited company, sole proprietor or partnership and new start or exisiting) and have it registered with the Tax Department for which you have to take on a tax-consultant on a contract basis, about 150,000 KRW per month.

You will also need to show a rental contract for the business premises (rental, ownership or key money) but fret not, the business can be home-based - for example as a freelance translator.

Then go to the Immigration Service and get your residence / work permit. These can now be valid for up to 3 years now (my present one is two years). Don't forget to get a multi-entry visa: standard issue is single entry!

You are then in business - literally - and are registered for VAT. So you have to charge VAT on your sales and can deduct VAT on all your purchases.

There are a couple of other little advantages including using the foreign investor line at Incheon immigration and you can make numerous tax-free imports in the first year, including a car.

Hope that helps

[Captain Corea]

Adding to Wangja's great info is... if he is going to be teaching at the school (not just working there), then he will also need an E2.

A friend who set up a school in Anyang had to get that as well

[Wangja]

[prosodic]

Cool. Now I'm looking forward to the day when I'll have 50 million saved up.