[Exclusive] Foreigners Earning Less Than 6 Million Won Monthly Also Granted Permanent Residency... Threshold Lowered Due to Low Birthrate

Requirements for Obtaining Korean Permanent Residency Demand More Than Twice the Gross National Income (GNI) Per Capita
Annual Salary Over 84.4 Million Won... "Criticism Over Excessively High Residency Standards"
First Quarter Total Fertility Rate Hits Record Low (0.81), Structuring a Super-Low Birth Society
"Policy Changes Needed to Increase Working-Age Population"

The government is considering removing the income criteria for permanent residency to overcome the population crisis caused by low birth rates and aging. The intention is to reduce the number of foreigners who give up immigrating to Korea due to excessively high income requirements. As the total fertility rate in the first quarter of this year (0.81) recorded the lowest ever for the same period, voices are growing to lower the immigration threshold so that foreign workers can stay and work in the country for a longer time.

"Considering Removal of Income Criteria for Permanent Residency"

A government official said on the 23rd, "We are discussing the removal of income criteria for foreigners' permanent residency," adding, "This measure is expected to be included in the ‘Basic Foreign Policy Plan’ to be announced soon by the Foreign Policy Committee under the Prime Minister's Office." The Foreign Policy Committee is a committee under the Prime Minister that deliberates and coordinates important foreign policy matters. The policy is expected to include easing the criteria for issuing permanent residency, specific directions related to the establishment of an immigration office (tentative name), and the full-scale implementation of the regional specialized visa program.

Korea’s general permanent residency (F-5-1) requires a stay of more than five years in the country and an income of at least twice the Gross National Income (GNI) per capita (annual income) from the previous year. According to the Bank of Korea’s announcement in March, the per capita GNI was about 42.2 million KRW. This means that to obtain general permanent residency, an annual salary must exceed 84.4 million KRW. Converted to monthly salary, this is about 6 million KRW or more, which is a considerable amount, and meeting this condition is necessary to be recognized as having the ability to sustain a livelihood. Of course, there are types of permanent residency exempt from annual income screening, but these require being a high-value investor (F-5-5), a real estate investor (F-5-23), or a technology startup investor (F-5-24), so the threshold remains strict.

The number of foreigners holding permanent residency in Korea is less than 200,000. According to the Immigration and Foreign Policy Headquarters of the Ministry of Justice, among the total foreigners residing in Korea last year (2,245,912), only 176,107 (7.8%) were permanent residents. In 2021, among 1,956,781 foreigners, 168,118 (8.6%) held permanent residency, and in 2020, among 2,036,075 foreigners, only 160,947 (7.9%) did. In contrast, Japan, which has pursued a more closed immigration policy, had 863,936 permanent residents. Considering Japan’s total foreign resident population of 3.02 million, the proportion of permanent residents (28%) is higher than in Korea.

Assessing Livelihood Ability and Adaptability Rather Than High Income

A government official said, "Requiring high income for permanent residency is a remnant of Korea’s closed immigration policy," adding, "However, to resolve the shortage of the working-age population caused by low birth rates and aging, the hurdle should be lowered." It is highly likely that a new plan will be introduced to comprehensively evaluate the livelihood ability and adaptability of foreigners who wish to stay long-term instead of imposing high income standards.

Canada’s core permanent residency system, ‘Express Entry,’ comprehensively assesses immigration ability based on a points system including work experience, education, and English proficiency. It does not require a specific income condition. Applicants with the highest comprehensive scores out of 1,200 points are qualified for permanent residency. Japan also does not clearly specify income criteria for permanent residency. Foreigners can apply after residing in Japan for more than 10 years, and the government verifies whether applicants can independently sustain their livelihood. The Japanese Immigration Services Agency comprehensively assesses whether applicants will not become a public burden in daily life and whether they are expected to have a stable life in the future.

Experts also call for easing excessively high permanent residency criteria. Choi Seori, a research fellow at the Immigration Policy Research Institute, said, "In an expert survey on improving Korea’s permanent immigration system conducted by the Immigration Policy Research Institute last year, government officials expressed opinions that the threshold for permanent residency in Korea should be lowered," adding, "It is necessary to review the current permanent residency granting system not only to attract foreign professionals but also to create an environment where they can live stably in Korea." An expert participating in the survey pointed out, "Requiring income of more than twice the per capita GNI makes it almost impossible for ordinary foreigners to apply for permanent residency, resulting in only high-income earners applying."

The government realistically views it as difficult to raise the birth rate in the short term and is preparing various measures to attract foreigners to the labor market. Korea’s working-age population is rapidly decreasing, and even if low birth rate policies succeed, there will be a gap of at least 15 years before the new births become part of the working-age population.

Additionally, the government is discussing the full-scale implementation of the regional specialized visa program, which started as a pilot project last year, from the end of this year. The regional specialized program is a foreigner settlement support project introduced by the Ministry of Justice to address regional population decline. Local governments selected for the pilot project can select outstanding foreign talents in the region and enable them to obtain residence visas. By easing residence visa issuance conditions, this program aims to solve population problems in regions facing labor shortages. Furthermore, specific directions regarding the establishment of the immigration office (tentative name), which has been shrouded in secrecy, are expected to be disclosed soon. However, officials from the Ministry of Justice and the Ministry of Economy and Finance said, "These matters are still under discussion."