Wealthy parents ditch Korean passports to get kids into international school

Vanuatu, an archipelago of 83 islands in the South Pacific, is a paradise for nature lovers. But in South Korea, this beautiful island nation is gaining attention for a different reason: citizenship shopping.

Bae, 30, a housewife living in Seocho-gu, southern Seoul, is thinking of acquiring Vanuatu citizenship for the sake of her 4-year-old son.

“My son currently attends an English immersion kindergarten. I am hoping he can enroll in international schools (in Korea), instead of local schools,” she told The Korea Herald, citing a multicultural learning environment and English curriculum as major reasons.

If Bae becomes a Vanuatu citizen, her son will become eligible for admissions to international schools, she added.

According to international schools accredited by the Education Ministry, such as Yongsan International School of Seoul and Seoul Foreign School, children who have Korean nationality, like Bae’s son, can only be admitted if one of their parents has foreign nationality or if the child has lived overseas for at least three years.

Now, private overseas immigration agencies assist parents who want to enroll their child in such schools by meeting the first part of the requirement – one parent having foreign nationality. "Citizenship by investment" programs hosted by some Caribbean and Pacific states serve as crucial pathways for some of Korea's wealthy.

Vanuatu citizenship, for example, typically requires an investment in the country -- or simply a cash donation -- of $130,000 for a single applicant, $150,000 for a married couple or $180,000 for a family of four, according to Cho, director of one such immigration consulting firm in Seoul.

“Vanuatu is one of the most preferred destinations (to obtain citizenship through investment). The application process takes three to six months, and no mandatory residence period is required,” he said.

When this Korea Herald reporter, posing as a client, consulted with him about Vanuatu’s citizenship program, the director recommended that the reporter apply as fast as possible before new regulations on passport issuance take place in December.

He explained that those whose citizenship applications are approved by Vanuatu’s Department of Immigration after Nov. 30 must visit a Vanuatu embassy to have their fingerprints and face registered for a Vanuatu passport. Since there is no Vanuatu embassy in South Korea, applicants will need to visit the embassy in Malaysia, Dubai or Hong Kong.

“Right now, applicants can receive their passports by mail,” he added. His agency charges $1,500 per person to handle the application process.

Education over nationality

If Bae, the mother considering international schools for her son, obtains Vanuatu citizenship, she will automatically lose her Korean nationality. She will also join a small but growing group of Vanuatu nationals living in South Korea.

Data from the Ministry of Justice put the number of people who have given up Korean nationality for Vanuatu nationality between 2019-2022 at 18. While no data is available for after 2022, if agencies like Cho’s have been successful, the number is likely to have increased.

Under Article 15 of the Nationality Act, Koreans automatically lose their nationality from the moment they acquire foreign citizenship.

A 33-year-old housewife, Chang, whose 10-year-old son attends Busan Foreign School in Haeundae-gu, Busan, shared that at her son’s school, “many” parents have either chosen to give birth overseas or acquired citizenship from Pacific countries for the sake of their children's future.

As of 2023, a total of 49 accredited international schools are in operation here, according to data from the Korean Educational Statistics Service. The annual tuition for international schools in Korea ranges from 30 to 40 million won ($21,471-28,628), an amount comparable to the annual salary of an average office worker here.

"With many children of foreign executives and diplomats attending, the schools are a foothold for entering elite schools overseas. Some may criticize parents buying citizenship for being overly obsessed with their children's education, but it is their choice. As long as it's not illegal, it should be respected," according to Chang.

For Bae, who is considering Vanuatu citizenship to secure her son a coveted spot at an international school, the minimum $130,000 cost feels “worthwhile,” especially given how much Korean parents already spend to set their children on an elite track.

"The cost of private education here is staggering. I've heard that the financial burden is double if a child prepares for admission to foreign universities while living in Korea. Studying at an international school ensures English proficiency and provides an advantage for admissions to prestigious universities abroad."

In South Korea, the total cost of raising a child from birth to college – up to the age of 22 -- averaged 275 million won ($196,531), according to the 2020 report, “Current Status of Educational Expenses in Korea,” by the Korea Institute for Health and Social Affairs.

There are international schools that offer recognized English curricula such as the International Baccalaureate or Advanced Placement courses, without requiring foreign nationality or to have lived overseas. However, of 52 such institutions, only 14 are accredited by Korea's education authorities, enabling students to obtain official diplomas. At the remaining nonaccredited schools, students must pass the General Equivalency Diploma test to validate their education and qualify for higher education afterwards.

However, it is the "foreigner-only" schools that parents highly value and pursue even buying foreign citizenship to send their children to.

"What they want to gain in exchange for foreign citizenship is a multicultural studying environment as well as opportunities to network with foreign parents from prestigious backgrounds," Chang said.

Not illegal opportunism

Many blog postings detail processes of obtaining citizenship elsewhere with titles like: “The fastest way to enter international schools.” However, citizenship shopping is not only pursued by Korean parents to get their children spots in international schools. It is also used for tax evasion and for Korean men to avoid the country's mandatory military service.

There is apparently no legal basis to stop people from buying citizenship elsewhere, according to lawyer Kim Hanna at lawfirm Yulsaseojae.

“The current Nationality Act guarantees the freedom to renounce one's nationality,” Kim said. If authorities want to prevent foreign citizenship from being misused to evade military or tax obligations, they will have to devise regulatory measures. “But there will always be people attempting to circumvent regulations.”

Immigration consulting firms promoting an expedient route to applying for a place for one's child at an international school also operate outside of regulations.

Korea's Emigration Act obligates such immigration agencies to register with the Ministry of Foreign Affairs. But the ministry only manages their registration process, without regulating their business methods.

“The Article 10 of the Emigration Act outlines prohibited actions for immigration agencies, such as false advertising and unjust fee collection. However, if companies just advertise their services with slogans like ‘foreign school admissions’ or ‘tax savings,’ it can be challenging to regulate these activities,” according to Kim.