[EN] Does the KRW 100 Million for a D-8 Visa Have to Stay in the Bank Account?

 

Foreign business owner checking company accounts and business documents in Korea.
A foreign entrepreneur reviewing company finances before applying for a D-8 visa extension.

What Foreign Entrepreneurs Often Misunderstand About Investment Capital Requirements in Korea

"If I spend the KRW 100 million after getting my D-8 visa, will I lose my visa?"

This is probably one of the most common questions among foreign entrepreneurs preparing to start a business in South Korea.

Many people believe the government requires the KRW 100 million investment to remain untouched in the company's bank account forever.

Some even delay hiring employees, renting an office, or buying equipment because they are afraid of reducing the account balance.

The reality is different.

The government does not expect your business capital to sit idle.

The question is not whether the money was spent.

The question is how and why it was spent.

Imagine a founder from Singapore who establishes a software company in Seoul.

They transfer KRW 100 million to Korea, complete the foreign investment registration process, and receive their D-8 visa.

A month later, they need to pay office rent, purchase computers, and hire their first employee.

They become nervous.

"If I spend this money, won't my account fall below KRW 100 million and create problems for my visa?"

This fear is extremely common.

Fortunately, the answer is usually no.

Official Guidance

Under the Foreign Investment Promotion Act (외국인투자 촉진법), a foreign investor generally qualifies for a Corporate Investment (D-8-1) status by investing at least KRW 100 million and acquiring at least 10 percent of the voting shares or equity of the Korean corporation.

Neither the Act nor the official investment guidance requires the investor to keep the KRW 100 million permanently frozen in the corporate bank account after the investment has been properly completed and registered.

Executive Commentary

This is the first important point.

The KRW 100 million is business capital, not a security deposit.

The government expects companies to operate.

Businesses need to pay rent.

They need equipment.

They need inventory.

They need employees.

A company that never spends any money may actually look less like a real business than one that actively uses its capital for legitimate operations.

Can I Use the Investment Money for Business Expenses?

In many cases, yes.

Ordinary and documented business expenses may include:

  • office lease deposits and rent,
  • office furniture and equipment,
  • computers and software,
  • inventory and raw materials,
  • marketing expenses,
  • employee salaries and other operating costs.

The key principle is simple:

The spending should make sense as a company expense.

Official Guidance

Official investment and visa guidance for smaller investment cases may require additional evidence showing how the investment capital has been used.

Supporting documents can include:

  • corporate bank statements,
  • purchase receipts,
  • office lease agreements,
  • invoices,
  • photographs of the business premises,
  • and other materials demonstrating actual business operations.

Executive Commentary

This creates another common misunderstanding.

Some entrepreneurs think:

"As long as I transferred KRW 100 million to Korea once, my job is done."

Not necessarily.

During visa extension reviews, immigration authorities often look at whether the company is genuinely operating.

They may ask:

  • Is there an actual office?
  • Is the company conducting business?
  • How was the investment money used?
  • Are there accounting and tax records supporting the transactions?

The focus is usually not the account balance itself.

The focus is whether the investment became a real business.

What Happens If I Take the Money Out for Personal Use?

This is where problems can begin.

Once the investment enters the company and becomes corporate capital, it is no longer simply your personal money.

A founder who transfers large amounts of company funds back to a personal account without a clear business explanation may face difficult questions later.

This does not mean that one transfer automatically cancels a visa.

However, unexplained withdrawals, personal use of company money, or transactions that weaken the credibility of the investment can create significant issues during future reviews.

Official Guidance

During D-8 extension reviews, immigration authorities may examine various factors, including:

  • the company's actual business activities,
  • tax filings,
  • sales performance,
  • use of investment capital,
  • corporate bank records,
  • and evidence that the business is genuinely operating.

Executive Commentary

This leads to the biggest misunderstanding of all.

Many people think:

"Immigration only checks whether I still have KRW 100 million in my account."

In reality, the review is usually much broader.

The authorities often want to see evidence that:

  • the company exists,
  • the investment was genuine,
  • and the business is actually operating in Korea.

The question is not:

"Do you still have KRW 100 million?"

The better question is:

"Can you explain where the money went and how it helped operate the company?"

The Bigger Lesson

The KRW 100 million for a D-8 visa is not money that must remain untouched forever.

It is investment capital intended to support a real business.

But once it becomes company money, it should be treated like company money.

The safest approach is simple:

Spend it for legitimate business purposes and keep clear records explaining every major transaction.

Before You Meet a Professional

Consider asking questions such as:

  • Does my planned spending qualify as a legitimate business expense?
  • What documents should I keep to prove how I used the investment money?
  • How will immigration review my company's activities during the extension process?
  • Are there transactions that may look like personal withdrawals?
  • Does my company have enough evidence to demonstrate genuine business operations?

Understanding this structure can help you begin a much more productive conversation with immigration professionals, accountants, and business advisors before establishing your company in Korea.

Effective Date

Fact-checked: July 2026

Fact-Check Materials Used

  • Foreign Investment Promotion Act
  • Invest Korea Foreign Investment Guide
  • Invest Korea Visa Guide for Investing in Korea
  • Korea Immigration Service guidance on Corporate Investment (D-8) status

Official Sources

  • Ministry of Trade, Industry and Energy (MOTIE)
  • Invest Korea (KOTRA)
  • Korea Immigration Service
  • Korea Law Information Center

Disclaimer

This article is a practical pre-understanding guide based on publicly available information. It is not legal, immigration, tax, or investment advice. D-8 requirements and extension reviews may differ depending on the company's circumstances, and readers should confirm important matters with the relevant authorities or qualified professionals before making business decisions.


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