SOUTH KOREA Law and Practice Contributed by: Woong-kyu Cho, Ji-eun Kim and Hyun-kyung Kim, Barun Law LLC
7.2 Expeditious Citizenship Under the Korean Nationality Act, a person with no prior connection to Korea may obtain Korean national - ity without satisfying the ordinary residence require - ment (generally two to five years) only in exceptional cases: (i) where the person has rendered distinguished service to Korea, or (ii) where the person possesses exceptional ability in fields such as science, busi - ness, culture or sports and is expected to contribute to Korea’s national interests (Article 7 of the National - ity Act). The grounds for expedited naturalisation are there - fore narrowly defined. Korean law does not provide a citizenship-by-investment programme, and nationality cannot be obtained solely through a qualifying invest - ment. However, foreign investors who invest at least USD500,000 and employ five or more Korean nation - als, or maintain an investment of at least KRW3 billion for five years, may qualify for permanent resident sta - tus, allowing them to reside in Korea without restric - tions on their period of stay. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms Korean law does not provide a separate trust regime for minors or adults with disabilities. Instead, such arrangements are established under the general Trust Act. Where a beneficiary, such as a minor or an adult with disabilities, is unable to supervise the trustee effectively, the court may appoint a trust administra - tor to exercise the beneficiary’s rights and oversee the trustee, thereby protecting the proper administration of the trust. In addition, Korea provides statutory measures to support the preservation and management of assets owned by persons with disabilities. These include (i) a gift tax exemption for qualifying trusts under Arti - cle 52-2 of the Inheritance Tax and Gift Tax Act and (ii) a property management support service for per - sons with developmental disabilities, under which the State manages and administers their assets pursuant
Meanwhile, in Korea, it is, in principle, permitted for a trust or foundation to hold equity interests in an active business or to own the assets themselves and there- by substantially operate the business. However, such arrangements are subject to regulations and restric - tions under the Tax Act and Fair Trade Act. 7. Citizenship and Residency 7.1 Requirements for Domicile, Residency and Citizenship Under the Korean Nationality Act, a person acquires Korean nationality at birth if: • either parent is a Korean national at the time of birth; • the father died before the child’s birth but was a Korean national at the time of death; or • the child is born in Korea and both parents are unknown or stateless. A person who is not a Korean national may also acquire nationality through acknowledgement where the individual is a minor under Korean law, either par - ent was a Korean national at the time of birth, and the acknowledgement is made by that Korean-national parent. In other cases, Korean nationality may be acquired through naturalisation by a person who has main - tained a residence in Korea for the statutory period (generally two to five years), satisfies the legal require - ments, and obtains government approval. Applicants must demonstrate good conduct, the ability to main - tain a livelihood, basic Korean language ability and knowledge of Korean customs, and must not pose a risk to national security, public order or public welfare. Alternatively, a foreign national who obtains perma - nent resident status is not subject to restrictions on permitted activities or length of stay in Korea. Per - manent residence likewise requires satisfaction of the statutory eligibility criteria, including good conduct, financial self-sufficiency, and basic Korean language ability.
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