The Ministry of SMEs and Startups is set to introduce a new visa to address the challenges faced by foreign entrepreneurs in South Korea. Despite various supports provided to promote foreign entrepreneurship, many startups have been leaving the country within a year due to visa issues. Minister Oh Young-joo announced plans to introduce the "Startup Korea Special Visa" exclusively for foreigners in November, aiming to provide a more stable environment for foreign entrepreneurs.
The Ministry of SMEs and Startups has been supporting foreign entrepreneurs through the K-Startup Grand Challenge program, with this year's project budget set at approximately 6 billion won. Since its inception in 2016, the program has selected and supported 449 startups from 62 countries. However, a significant number of these companies have left Korea, highlighting the need for more effective measures to retain foreign talent.
On Oct. 25, during a comprehensive audit of the Ministry by the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee, Rep. Kang Seung-gyu of the People Power Party emphasized the long time it takes for foreign entrepreneurs to renew their visas. “Foreign entrepreneurs residing in Korea are complaining about the long time it takes to renew their visas,” he stated.
Foreign entrepreneur A, who has been in Korea for about five years, shared his experience, saying, "Although they have obtained a master's degree and own a production line in Korea, the long time required for visa renewal is a significant hardship." This sentiment was echoed by another foreign entrepreneur, B, who said, "I received investments worth several hundred thousand dollars from overseas, but I couldn't secure investments in Korea. It seems that Korean venture capitalists do not trust foreign entrepreneurs because they can leave at any time due to visa issues."
Rep. Kang pointed out the broader implications of these challenges, stating, "It doesn't seem likely that foreign companies entering Korea will succeed for more than three years. For Korea to become a land of opportunity, a visa that allows continuous work is necessary. "
Minister Oh Young-joo acknowledged the issue, stating, "As pointed out, the biggest obstacle to foreign entrepreneurship is the startup visa. In consultation with the Ministry of Justice, we plan to introduce the Startup Korea Special Visa around November." This new visa aims to provide a more stable and supportive environment for foreign entrepreneurs, addressing one of the key barriers to their success in Korea.
The K-Startup Grand Challenge has seen varying levels of success among the companies it has supported. Notably, among the 40 companies supported in 2016, 17 stayed for one year, 13 stayed for two years, and 12 are still remaining. This indicates that while some companies have managed to establish themselves in Korea, a significant number have withdrawn due to the challenges they face, particularly related to visa issues.
The introduction of the Startup Korea Special Visa is expected to be a significant step towards making South Korea a more attractive destination for foreign entrepreneurs. By providing a more stable visa option, the government hopes to retain more foreign startups and foster a more vibrant and diverse entrepreneurial ecosystem. As the new visa is set to be introduced in November, it remains to be seen how it will impact the landscape of foreign entrepreneurship in South Korea.
source : Businesskorea(https://www.businesskorea.co.kr)
The Ministry of SMEs and Startups is set to introduce a new visa to address the challenges faced by foreign entrepreneurs in South Korea. Despite various supports provided to promote foreign entrepreneurship, many startups have been leaving the country within a year due to visa issues. Minister Oh Young-joo announced plans to introduce the "Startup Korea Special Visa" exclusively for foreigners in November, aiming to provide a more stable environment for foreign entrepreneurs.
The Ministry of SMEs and Startups has been supporting foreign entrepreneurs through the K-Startup Grand Challenge program, with this year's project budget set at approximately 6 billion won. Since its inception in 2016, the program has selected and supported 449 startups from 62 countries. However, a significant number of these companies have left Korea, highlighting the need for more effective measures to retain foreign talent.
On Oct. 25, during a comprehensive audit of the Ministry by the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee, Rep. Kang Seung-gyu of the People Power Party emphasized the long time it takes for foreign entrepreneurs to renew their visas. “Foreign entrepreneurs residing in Korea are complaining about the long time it takes to renew their visas,” he stated.
Foreign entrepreneur A, who has been in Korea for about five years, shared his experience, saying, "Although they have obtained a master's degree and own a production line in Korea, the long time required for visa renewal is a significant hardship." This sentiment was echoed by another foreign entrepreneur, B, who said, "I received investments worth several hundred thousand dollars from overseas, but I couldn't secure investments in Korea. It seems that Korean venture capitalists do not trust foreign entrepreneurs because they can leave at any time due to visa issues."
Rep. Kang pointed out the broader implications of these challenges, stating, "It doesn't seem likely that foreign companies entering Korea will succeed for more than three years. For Korea to become a land of opportunity, a visa that allows continuous work is necessary. "
Minister Oh Young-joo acknowledged the issue, stating, "As pointed out, the biggest obstacle to foreign entrepreneurship is the startup visa. In consultation with the Ministry of Justice, we plan to introduce the Startup Korea Special Visa around November." This new visa aims to provide a more stable and supportive environment for foreign entrepreneurs, addressing one of the key barriers to their success in Korea.
The K-Startup Grand Challenge has seen varying levels of success among the companies it has supported. Notably, among the 40 companies supported in 2016, 17 stayed for one year, 13 stayed for two years, and 12 are still remaining. This indicates that while some companies have managed to establish themselves in Korea, a significant number have withdrawn due to the challenges they face, particularly related to visa issues.
The introduction of the Startup Korea Special Visa is expected to be a significant step towards making South Korea a more attractive destination for foreign entrepreneurs. By providing a more stable visa option, the government hopes to retain more foreign startups and foster a more vibrant and diverse entrepreneurial ecosystem. As the new visa is set to be introduced in November, it remains to be seen how it will impact the landscape of foreign entrepreneurship in South Korea.
source : Businesskorea(https://www.businesskorea.co.kr)