The immigrant visa known as the EB5 for South Korean investors allows applicants to apply for a green card or permanent residence in the United States. A green card allows the South Korean investors and their dependents to live in the United States indefinitely. For South Korean investors seeking an EB5 visa, the minimum investment must result in ten full-time jobs for US citizens.
In this article, we will get to know about some ‘must know facts’ for South Korean investors thinking about investment in the EB-5 Visa Program.
Program Overview
The EB5 Visa is a popular choice amongst all other visas required in the United States. In fiscal year 2024, South Korea accounted for 0.11% of total EB-5 Visa issuance, making it the 30th country in the world with the highest number of EB-5 Visa issues, according to January 2024 data provided by the U.S Department of State. South Korean investors can move to the United States on a permanent basis using the EB5 Visa, and a green card allows them to send their children for education in the United States.
Things to Know Before Investing
South Koreans constitute a major population applying for the EB5 Visa Program in response to its major benefits. Many investors from South Korea have shown their interest in the investment opportunity which in return allows them to gain permanent residency in the United States. However before investing a large sum there are things to know :
- Timeline: The USCIS allows only 10,000 EB5 Visas per year so there are many backlogs which can sometimes delay the process of the EB5 Visa. If an EB-5 visa is approved for South Korean investors, the green card is a conditional one that is valid for two years. If an investor files a petition to remove conditions on permanent resident status (form I- 829), the green card is an unconditional one which is valid for ten years.
- EB5 Investment:
- The EB5 investment was $800,000 (1,108,792,000 Won) for a high employment area and $1,050,000($455,289,500) for a non-targeted area.
- Form I-526 :$3,675 (5,093,513.25 South Korean Won)
- Form I-$3,750 (5,197,462.50 South Korean Won)
- Age: There is no restriction based on age. This implies that any investor from South Korea can become an EB-5 investor. Nevertheless, a minor may not have sufficient assets or income to qualify as an EB-5 investor independently. In such cases, the parents or a legal guardian who provides the investment amount must present the required documents to prove the source of funds. Sometimes, a South Korean investor seeking an EB-5 visa may encounter difficulties in obtaining specific documentation. In such situations, the applicant can submit a declaration explaining the reasons for their inability to provide the necessary documentation.
Benefits of EB5 for South Korean Investors
South Korean Investors for the EB5 visa program can avail many benefits along with their dependents:
- US Citizenship: South Korean Investors are one of the biggest EB-5 market participants in the United States. According to Real Capital Analytics, South Korean investors invested more than $5 billion in U.S. real estate in 2020.
- Better Education and Lifestyle: South Korean investors want to immigrate to the United States with their dependents in order to reestablish connections with their immigrant family members.
- They want their children to have a quality education in the United States, where they can study in some of the world’s best institutions without having to worry about restrictions placed on foreign students.
- They also want to be able to pay 150-300% lower tuition fees than foreign students, have access to more funding and scholarships than foreign students, study as a day scholar, and avoid long periods of separation from their family just to get a quality education.
- Furthermore, they want to explore job opportunities in the United States without worrying about issues such as work permits, sponsorships, processing delays, visa expiry, or job mobility restrictions.
- Expanding investment horizons geographically: South Korea is among the top 5 EB-5 markets, alongside China and India. According to Real Capital Analytics, South Korean EB-5 investors invested more than $5 billion in U.S. real estate in 2020. Increased international mobility. EB-5 Visa holders in South Korea have full freedom to travel and live anywhere in the United States. US green card holders enjoy visa-free travel to South Korea.
Risks for South Korean Investors in EB5 Visa Program
The EB5 Visa Investment can hold many risks for the South Korean Investors :
- Money Transfer Difficulties: Local Tax Office clearance is necessary to transfer large sums of money overseas. To source a sum of $50,000 the South Korean investor has to set up a local fund for the successful transaction.
- Fraudulent Activities: In the name of EB5 visa there have been many setups which fake promises of the Visa in return of money. These setups are not registered with the USCIS and still function in many places hunting for investors desperate to get a visa as soon as possible.
- Jeonse Money: The loan regulations in South Korea are very strict. It is fairly common for the south korean property owners to use the jeonse money as a source of funds. This can lead to complications in the process in addition to the strict regulations.
