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Japan to Hike Business Manager Visa Threshold Sixfold Amid Abuse Allegations · IMI Podcasts

• 0:00
  SPEAKER_00: The Japanese government will tighten the requirements for its business manager visa, which aims to attract foreign entrepreneurs.
• 0:07
  SPEAKER_00: The Immigration Services Agency says it plans to raise the capital requirement from 5 million yen or 34,000 US dollars to 30 million yen or 34,000 US dollars, 203,000 US dollars, and mandate that visa holders employ at least one full-time local worker, down from two in the current requirements.
• 0:29
  SPEAKER_00: Officials say these changes, which they're currently discussing with a panel of experts according to a recent report by the Ashai Shimbun, will take effect within the year through an amended ministerial ordinance.
• 0:40
  SPEAKER_00: Justice Minister Keisuke Suzuki instructed a thorough revaluation of the current capital requirement in May and said that the financial threshold falls short of peer programs in other markets, such as South Korea's immigrant investor program.
• 0:54
  SPEAKER_00: Ruling and opposition parties pushed for reform during this year's legislative session, which concluded in late June, suggesting a growing political consensus to tighten the program's requirements following recent reports of growing abuse.
• 1:07
  SPEAKER_00: Japan's business manager visa has evolved significantly since its introduction.
• 1:11
  SPEAKER_00: Authorities rebranded it in 2015 to attract a broader pool of talent.
• 1:16
  SPEAKER_00: Subsequent regulatory relaxations, such as allowing funds from share sales to count toward the capital requirement, contributed to a sharp rise in visa holders, from 18,100 in 2015 to 41,600 by the end of 2024.
• 1:33
  SPEAKER_00: Siren Chien, group head of project RD at Globa Visa Group, notes that even with the six-fold increase, the program will still hold a competitive advantage compared to other mainstream developed countries, adding that the program's lack of language or age requirements are also compelling factors for investors.
• 1:51
  SPEAKER_00: Officials say the program's relatively lenient requirements led to disappointing outcomes.
• 1:56
  SPEAKER_00: They say some individuals exploit the system by establishing paper companies or launching short-term apartment rental businesses, locally known as Minpaku, to qualify for the visa.
• 2:07
  SPEAKER_00: This follows the arrest of a 44-year-old Sri Lankan man, Mohammed Irfan, on July 7th for allegedly helping others obtain business manager residency by submitting false corporate documents.
• 2:19
  SPEAKER_00: The police reportedly said he used a fake car dealership to create fraudulent financial statements in 2023, enabling another Sri Lankan man to secure a business manager visa.
• 2:30
  SPEAKER_00: Irfan, based in Chigasaki, Kanagawa Prefecture, denies the allegations, but authorities believe he operated a broader scheme using about 600 dummy companies, arranging for Sri Lankans to first acquire engineer, specialist in humanities, international services visas by pretending they worked for fake firms.
• 2:50
  SPEAKER_00: He would then later reposition some of them as company executives to apply for business manager visas.
• 2:56
  SPEAKER_00: Authorities also say that Irfan and other brokers misled victims with promises of high-paying jobs in Japan.
• 3:03
  SPEAKER_00: As of July 7th, authorities had taken nine Sri Lankans into custody, labeling them victims of the scam.
• 3:10
  SPEAKER_00: Several admitted to paying brokers between 500,000 and 1 million yen, or$3,400 to$6,000,$6,800 to gain entry into Japan.
• 3:21
  SPEAKER_00: Could a higher threshold help put an end to such abuse of the program?
• 3:25
  SPEAKER_00: Chen sees that as a possibility, saying a higher threshold would filter out candidates who don't have long-term investment intentions and would also encourage them to take their business projects seriously, given the capital at stake.
• 3:37
  SPEAKER_00: Under current requirements, applicants must secure a business office and either possess capital of 5 million yen or employ two full-time staff members.
• 3:46
  SPEAKER_00: The proposed changes will increase the financial threshold and simplify the employment requirement.
• 3:52
  SPEAKER_00: The government will allow exceptions for holders of startup and future creation individual visas, enabling them to transition to the business manager visa under existing criteria.
• 4:02
  SPEAKER_00: The startup visa, part of Japan's foreign entrepreneurial activity promotion program, and the future creation individual visa, which targets graduates from top-tier universities, aim to attract innovative talent.
• 4:15
  SPEAKER_00: They say these pathways will ensure that stricter business manager visa requirements do not deter highly skilled individuals.
• 4:22
  SPEAKER_00: Prospective applicants for the program should act quickly while the new changes remain under discussion, Chen advises.
• 4:31
  SPEAKER_00: This episode first appeared as an article by Mustafa Daily on imidaly.com.
• 4:38
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