Hong Kong New CIES and South Korea program offer two very different residency plays for HNWIs

Globevisa Group says Hong Kong’s New CIES and South Korea’s investment immigration program serve different investor goals, with Hong Kong favoring market participation and South Korea emphasizing principal protection. The comparison matters for high-net-worth families weighing residency, liquidity and capital security across Asia.

Why it matters: - Hong Kong and South Korea are both used as cross-border residency routes for high-net-worth individuals and family offices. - The two programs solve different problems: Hong Kong leans toward flexible asset allocation, while South Korea is built around principal stability. - For investors, the choice affects liquidity, market exposure, compliance burden and exit timing.

What happened: - Globevisa Group compared Hong Kong’s New Capital Investment Entrant Scheme, or New CIES, with South Korea’s Public Interest Investment Program. - The comparison focused on how each program handles fund security, compliance requirements and withdrawal paths. - Globevisa said it has processed Hong Kong New CIES cases since the program began in March 2024.

The details: - Hong Kong New CIES requires HK$30 million to be placed into a designated financial account. - HK$3 million must go into a government-designated investment portfolio supporting local innovation and technology. - The remaining HK$27 million can be allocated in the open market. - Globevisa says it helps applicants build portfolios using financial products rated A or above. - Any capital gains belong to the investor under the Hong Kong structure. - The program allows asset-class changes inside the compliance account. - Dividend and bond-interest income can be withdrawn to personal consumer accounts during the lock-up period. - The account is not subject to margin calls if market values fall. - Residency status is not affected if account value drops below HK$27 million. - The Hong Kong structure runs on a seven-year status maintenance period. - After seven years, and once permanent residency or unconditional stay is obtained, the investment account can be unsealed. - The investor can then move funds to other jurisdictions or family trusts. - South Korea’s program offers F-2 long-term residency for a 1.5 billion won investment, or about $1 million. - A 3 billion won investment, or about $2 million, qualifies for F-5 permanent residency. - South Korean policy banks such as Woori Bank operate the fund. - The money goes to public infrastructure projects. - The South Korean structure offers no interest yield. - The principal is guaranteed and backed by policy credit. - The funds remain in the investor’s name but are held directly by policy banks. - Investors can withdraw funds at any time during the deposit period, but residency status is then invalidated. - The lock-up period in South Korea is five years. - After F-5 permanent residency is obtained, investors can apply to withdraw their investment. - The managing authority returns the principal to an international account. - Globevisa says its South Korea legal team uses a pre-filing mechanism with immigration authorities to document compliance before fund injection. - Globevisa says it has local offices in Hong Kong, Seoul and Jeju, and has handled more than 1,300 South Korea cases.

Between the lines: - Hong Kong’s design favors investors who want market upside and can tolerate price swings without risking immigration status. - South Korea’s model suits investors who want a more defensive route with a clear principal return framework. - The comparison shows how residency programs in Asia are increasingly being evaluated like financial products, not just immigration tools.

What's next: - Investors will likely keep matching program structure to their liquidity needs, tax planning and family residency goals. - Globevisa says standardized compliance screening and pre-filing work are becoming more important as these programs draw global capital. - Hong Kong applicants will need to stay within the seven-year maintenance rules before accessing their funds. - South Korea applicants will need to accept a five-year lock-up if they want the guaranteed principal return path.

The bottom line: - Hong Kong New CIES is the higher-flexibility, market-driven option. - South Korea’s program is the principal-protection option.