The government will ease permanent residency rules for foreign investors, allowing them permanent residency status if they invest $500,000, just a quarter of the currently required amount, officials said Tuesday (Apr. 22).

The move comes as part of CEO-turned President Lee Myung-bak's initiative to lower business barriers and increase foreign investment to revive the country's economy.

The revision of the immigration law to loosen permanent residency rules, prepared by the Ministry of Justice and now awaiting Cabinet approval, will take effect in September, said ministry officials.

A foreigner, who invests $500,000 and hires five locals, will immediately receive permanent residency status, officials said.

The current law requires non-Koreans to invest at least $2 million and employ five locals for the immediate issuance of their permanent residency card. Those who invest between $2 million and a minimum of $500,000 currently have to stay in the country for three years to receive permanent residency.

The tough rules discouraged many foreign investors from setting up ventures in Korea, and they opted for short-term investment visas instead, said Lee Ki-heum, a ministry official.

"Those who get permanent residency through investment have been almost nil, even though that status will grant them many benefits.

So the government decided to substantially ease the requirements," Lee said.

Permanent residency will allow them to stay in the country as long as they want free of concerns of repatriation unless they commit serious crimes. Their employment activities are treated the same as locals'.

The revision also grants the permanent residency to ethnic Koreans with foreign citizenships who stay here for two years.

About 37,000 such Korean expatriates currently reside in the country.

This article appeared on www.korea.net

April 23, 2008