South Korea mulls real estate immigration incentives

The South Korean Justice Ministry is considering adopting a real estate investment immigration system nationwide after it was met with success on the country’s southern resort island.

The system was first implemented on the southern resort island of Jeju in an effort to boost the local tourism industry.

“Seen from the result of the system’s test on Jeju Island, we concluded that it contributed to increasing investment by foreigners and discussed plans to expand it on a nationwide scale,” Seok Dong-hyun, Chief of the Korea Immigration Service, said.

Under the system on Jeju, foreigners who invest US$500,000 or more in local real estate business are eligible to receive an F-2 resident visa, which can later be upgraded to an F-5 visa for permanent residence if they live in the country for more than five years.

After Jeju’s special immigration rules took effect, Chinese companies signed a number of investment agreements hoping to build new hotels, hospitals and commercial and industrial facilities on South Korea’s largest resort island.

In addition, Raon Leisure Development Company, a Jeju-based real estate development firm, attracted investment deals totaling 49.6 billion won (US$41.9 million) from Chinese nationals for 100 housing units in an upscale residential complex, according to the justice ministry. Construction has yet to start.

The justice ministry said it is also considering lowering the minimum investment amount as a further incentive.