Foreign investor's visa

Question: I am a foreigner and I am thinking of starting a small business in South Korea . Is it possible to get a visa or do I need to be sponsored by a Korean company or partner?

Answer: Foreign investors are eligible to obtain a D-8 residence visa provided if they meet certain criteria. To qualify, an employee of a foreign company or an individual must establish a company in Korea or enter into a joint partnership with a Korean firm and invest over 50 million won in the project.

The types of foreign investment generally allowed are foreign direct investment (FDI), portfolio establishment, branch establishment, legal entity establishment, factory establishment, real estate acquisition and investment in infrastructure.

However, the kind of business does not matter as long as the company acquires a registration certificate of foreign investment from either a Korean bank or the Korea Trade-Investment Promotion Agency (KOTRA). The registration application process is as follows: the investor prepares documents which include the registration certificate of their business and submits them to the Immigration Bureau of the ministry of Justice. The Immigration Bureau will then inspect the documents. If the application is approved, they will send out a visa issuance notice certificate (generally called a blue form) to the person coming to Korea. When the person submits the blue form to the local Korean embassy in his or her home country, a D-8 visa will be issued. The application process is free of charge.

The length of stay can vary, with most being valid for one year. Extensions are possible.
Those intending to invest in Korea can register with the Korea Investment Service Center (KISC), where they will receive more detailed information. KISC is a newly-established arm of the KOTRA, a government-sponsored body which has played a major part in Korea's export-led economic development. You can contact the office at (02)-3460-7545 or visit it's homepage: www.scourt.go.kr/kg_p_address.html

You can also call the Immigration Bureau at (02)-650-6236.The homepage of the Ministry of Justice is http://www.moj.go.kr

Protection from dishonest landlords

Leary of lousy leases, landlords? Get a lien

Legal-Ease
By Sean Hayes

Dear Sean, I am considering renting an apartment, but the landlord wants a large deposit. Is there any way for me to protect myself against bad landlords that don't return deposits?- sUneasy in Taejon.

Dear Uneasy, there are two main types of residential rental agreements. The most common is Chonse. The Chonse rental system requires a tenant to put approximately 50 percent of the market value of the apartment down as a deposit (key money) and then the deposit is returned at the end of the lease term.

The second most popular rental agreement is the Wolse system. The Wolse system is gaining strength in Korea because of low bank interest rates. The Wolse system also usually requires a sizeable deposit and requires the tenant to pay monthly rent.
The problem with both systems is that you need to trust the integrity and financial stability of the landlord. How do we protect ourselves against landlords that are unwilling or unable to return rental deposits?

The House Lease Protection Act and the Civil Code provide protection for your deposit if you create a security lien (Chonsegwon Seoljung) on the real property in the amount of your deposit. If yous execute the lien, you can move out of the rental property and still be sure you will get back your deposit after the rent expires, since you have a legally enforceable ownership interest in that part of the property under the lien. It also is a simple procedure to enforce a lien through the court system.

A tenant before obtaining the lien should check the real property registration document to make sure there are no other lien holders that have priority over your lien. It costs a little money to execute the lien, but it is money well spent. Any reputable real estate agent should be able to assist you in executing the lien.

You should note that to register the lien a tenant has to obtain the landlord's approval and sometimes the landlord might not agree to give the tenant approval. If you are giving a sizeable deposit to a landlord it is highly advisable to obtain the lien and prospective tenant should be a little leary of any landlord that will not grant the right to a lien.

Even though you don't have a lien on the property or a landlord will not grant a lien the law does provide protection if you register your place of residence (foreigners register with immigration) and you personally occupy the residence. In the Seoul metropolitan area the law grants a 16 million won (slightly lesser amount in other areas) quasi-lien on the property. The quasi-lien is also easily enforceable in court.

The procedure seems complicated, but Korea recently adopted a small claims court system that drastically reduces the burden of filing suit. A landlord in a small claims court action can be sued for no more than 20 million won. In such proceedings, the plaintiff can institute an action by making an oral statement to the court clerk instead of filing a written petition to the court. Additionally, strict rules of evidence and procedure are waived.

To file suit at small claims courts, which are referred to as either Branch or Municipal courts, view the Supreme Court webpage for the court that handles your area of residence. The website court search page can be viewed at www.scourt.go.kr/kg_p_address.html

The webpage does not provide an English language search and if you need to file suit it is advisable, if your Korean-speaking friend along with you when you give your statement to the court clerk. If you need to file suit for a sum greater than 20 million won it is advisable to visit a local legal professional.

Sean Hayes is a constitutional researcher for the Constitutional Court of Korea. He is certified to the New York and connecticut bars. If you have any questions please e-mail weekender@koreaherald.co.kr

The article provides information about the law designed to help readers cope with their legal needs. Legal information is not legal advice. A local legal professional's assurance may be needed to insure that the information, and your interpretation of it, is appropriate to your particular situation.

"The Korean Herald" July 4, 2003