The Ministry of Strategy and Finance has announced plans to expand the country’s foreign investor program by awarding residential eligibility status to more foreign businesspeople investing in Korean funds.

The ministry said Tuesday that it would boost its budget for the program to set up advisory centers at Incheon International Airport to promote and provide information to foreign investors regarding immigrant investment.

The program, which was implemented in May, was part of efforts to boost Korea’s foreign investment.

Foreigners who invest more than 500 million won ($466,000) in public funds endorsed by the Ministry of Justice will be given the F-2 long-term residence visa.

Should they maintain their investments in those funds for five years, the government will award them permanent residence, or F-5 visa, the Finance Ministry noted.

Those funds are to be reinvested in small and medium enterprises as part of the Park Geun-hye government’s key policy promoting the development of a creative economy.

“Foreign investments via such funds will be indirectly reinvested in or be used to extend low interest rate loans to small and medium enterprises,” an official of the Finance Ministry said.

With the new policy, “regular foreign investors” must make a minimum investment of 500 million won. However, foreigners who retire at age 55 or above can invest at least 300 million won for visa eligibility on the condition that they own assets worth more than 300 million won.

They will be able to receive such visas as soon as they enter and invest in Korea at Incheon International Airport, where the process would be swiftly handled at immigration offices.

The Finance Ministry said that it would aim to attract potential foreign investors based in China and Vietnam by holding road shows there next year.

The investment program was introduced in May as the government sought to boost the real estate market by further attracting foreign investment, the official noted.

The Justice Ministry also amended laws last June to expand visas to foreign entrepreneurs looking to start a company and contributing to local job creation.

By Park Hyong-ki (hkp@heraldcorp.com)