SRC 10 Chapter Story

This is the first article in a series of ten articles focusing on how a potential investor might choose an EB-5 Regional Center and EB-5 Project so that the chance of immigration success is maximized and the risk of financial loss is minimized.  In the successive chapters, we will focus on the details of a methodology for choosing a qualified EB-5 Regional Center and EB-5 Project, which includes the importance of assessing the depth of a Project Developer’s business experience, the strength of the industry within which the Project operates, and critical “safety nets” that a Project might put into place to protect its investors.  More specifically, these articles will illustrate the reasons why a potential investor would choose Southeast Regional Center, LLC and the Project it is currently sponsoring. Southeast Regional Center History and Philosophy Southeast Regional Center LLC (SRC) was approved by USCIS to act as an EB-5 Regional Center in 2010.  SRC focuses on sponsoring manufacturing projects in rural areas. Through its sponsorship, SRC has made over $54 million in EB-5 investor capital available for infusion into its sponsored manufacturing projects. SRC’s philosophy prioritizes the investor. Unlike many other Regional Centers, SRC does not hold an equity stake in the Projects it sponsors. This allows SRC to be objective and to place the needs of the investors at the forefront of its activities. With this philosophy, SRC has enjoyed a 100% approval rate for all I-526 and I-829 petitions that have been fully adjudicated by USCIS so far.  In addition, for all investors whose I-829 petitions have been approved, their investment capital has been returned.   SRC’s business approach is a cautious one. Keeping the interests of the investors paramount, SRC proceeds thoughtfully and thoroughly with its review of potential projects and provides expert oversight of ongoing projects.  SRC’s review of potential projects includes consideration of strength of the industry within which the Project operates, and critical “safety nets” that a Project might put into place to protect its investors.   Southeast Regional Center’s Team and Trusted Partners SRC’s internal team and trusted partners consist of a group carefully chosen individuals who are themselves highly capable and deeply experienced in the fields of finance, collateralization, economic analysis, operations, and securities and immigration law. Please refer to chapter 10 for a description of each of our team members and trusted partners. Southeast Regional Center’s Currently Sponsored Project and the Project Developer Using the formula that has been successful for its five previous projects, SRC has chosen to sponsor a rural-area project in the auto parts manufacturing industry for its most current project offering.  With this project, SRC has again applied the same type of project parameters, investment safeguards, and investment terms as with SRC’s previous successful projects. Relationships are everything and an essential ingredient to our successful formula.  Ajin USA is the Project Developer. Ajin USA is a subsidiary of Ajin Industrial Co., Ltd., a company that is publicly traded on the Korean Exchange.  Ajin USA has been chosen to be a Tier 1 supplier of stamped metal autobody parts to Hyundai for Hyundai’s new $7.59 billion EV manufacturing facility located in Bryan County, Georgia, USA.  Ajin USA has been a critical supplier for Hyundai in the United States for more than 40 years.  SRC and Ajin USA have shared successes and enjoyed a relationship of mutual trust and transparency for more than 10 years. More To Come in This Series The next nine articles will provide in depth coverage of the issues touched upon in this introduction.  If you are considering an investment through the EB-5 Program, the information provided should be very helpful to your decision-making.  And, if you would like to become a part of SRC’s success, please review an article published by USA Today on January 31, 2024.  In this article, the journalist states: As the global automobile manufacturing industry transitions from ICEs (internal combustion engines) to EVs (battery electric vehicles)….The U.S. electric vehicle market is expected to grow rapidly….Southeast Regional Center, LLC (SRC)…is spearheading a solution-driven initiative to revive U.S. manufacturing.…SRC’s strategic approach involves attracting foreign investors to support EV manufacturing plants, creating job opportunities in rural areas for plant construction, and operation, and uplifting communities. The information provided here is not investment, tax or legal advice. You should consult with a licensed professional for advice concerning your specific situation. This article is educational and informational, and items including policy, program structures, financial models, feasibility studies, and other documentation may change without notification. Information prepared on electronic media such as PowerPoint, websites, blogs, WeChat, or other methods of delivery are often truncated and summarized to improve readability; details of any financial, tax or legal nature should only be addressed with a trusted licensed professional.

Thank you for joining us for Chapter 2 of our special series on Southeast Regional Center, LLC (“SRC”).  In Chapter 1, we introduced our firm, walked through its 13-year successful track record with the US EB-5 Immigrant Investor Program, and briefly discussed some of the elements that has powered our “Winning Formula” across time.  It is time to explore the factors behind our Regional Center’s success and more importantly, the success of our investors.   At SRC, we always review potential projects through the lens of putting our investors first.  This principle is the heart of our firm’s mission and guides everything we do.   That is why we take great care in selecting attractive projects backed by solid project developers.  Our investment methodology follows a repeatable process that always keeps our investors first.  We will outline our process across Part 1 and Part 2 of this Chapter.  And along the way, we will provide concrete examples of how and why our most recent project with Ajin USA passed all of our tests.  In doing so, we will demonstrate how any investor could apply these principles to maximize the chances of success when making the final EB-5 project selection.  Project Location First, we screen for an attractive investment opportunity based on its location.  Locations that rise to the top are usually business-friendly, with low taxes, a growing population and workforce, and lots of interest from new companies and corporations looking to expand or relocate.  Crucially, we also focus on whether a project is located inside or outside a “Targeted Employment Area (TEA)” as this factor has special meaning for the EB-5 Program.   If a project is located in a “Rural TEA” and meets all the other criteria of the EB-5 Program, then investors will enjoy access to a protected number of visas that are allocated just for Rural TEA projects. This is especially important for investors coming from nations that have a high demand for US visas.  Keep in mind, the EB-5 Program allocates visa availability by nation using a per-country limit system, where no single country can receive more than about 7% of the 10,000 annual visas available to the entire EB-5 Program.   Twenty percent of the entire annual visa allotment (2,000 visas) may only be issued for projects located in Rural TEAs.  This new feature, which was passed in the Reform and Integrity Act of 2022, lowers the risk of getting stuck in a backlog especially for immigrants from countries with very high EB-5 visa demand, such as China. Project Industry Next, we assess the current economic and geopolitical conditions and how they impact a particular project’s industry.  Like most investors, we seek out projects within industries that have a strong near-term and long-term outlook.   While that may seem obvious, we take our industry analysis very seriously because we want to select projects that: Company / Developer Our project selection process also considers the quality, track record and character of the company responsible for the project, often known as the project “Developer” in the EB-5 industry.  In Chapter 1, we detailed how important our relationship with Ajin USA has been to the success of our investors.  There are three main reasons this is true.  More to Come We will finish Chapter 2’s discussion of the “Winning Formula” in the next article, in which we will explore how we screen for a project’s ability to mitigate risk to the immigration process and financial risk of investment capital.  As always, we hope sharing our story will help our readers gain fresh perspectives on controlling risks and selecting sound investments with the greatest potential for prioritized green card issuance. The information provided here is not investment, tax or legal advice. You should consult with a licensed professional for advice concerning your specific situation.  This article is educational and informational, and items including policy, program structures, financial models, feasibility studies, and other documentation may change without notification.  Information prepared on electronic media such as PowerPoint, websites, blogs, WeChat, or other methods of delivery are often truncated and summarized to improve readability; details of any financial, tax or legal nature should only be addressed with a trusted licensed professional.

Welcome back to our special series on Southeast Regional Center, LLC (“SRC”).  In this article, we will pick up on the conversation started in Part 1, which is all about exploring our “Winning Formula” for EB-5 investment success.  This is Part 2, so please be sure to click here and read Part 1 in case you missed the previous article.  In Part 1, we covered three very important aspects of how we select projects to sponsor as a Regional Center.  Those three aspects include an analysis of the project’s location, its industry, and the company (or “Developer”) that is ultimately responsible for the project’s financial success.  In Part 2, we will focus on two more aspects – immigration risk and financial risk.  Specifically, this article is about the method we use to determine if a project has features that will lessen (or amplify!) the risk EB-5 investors face related their immigration process and their investment capital.   As in the previous article, we will provide concrete examples of how our most recent project with Ajin USA was designed to address both of these critical risks.  In doing so, we can demonstrate how to apply these investment principles to maximize the chances of success when making the final EB-5 project selection. Immigration Risk A primary feature of the EB-5 Immigrant Investor Program is that 10 jobs must be created or preserved per investment to generate the green card(s) sought by EB-5 investors and their families. The USCIS has a specific method for counting jobs that qualify investors for the green card that involves complicated tables and “multipliers” that statisticians developed for all major industry categories.  The details of that methodology are both unique and unfamiliar to many outside of the industry, which means any potential project must be vetted by a specialized economist with experience and familiarity with job-counting methodologies accepted by USCIS.  At SRC, we spend the time and resources to hire specialized economists in the early stages of project evaluation.  We do not waste our investors’ time on a project unless we have a credible and objectively verifiable preliminary estimate on job creation.  Furthermore, we seek out projects that exhibit, or have the potential for, two very important characteristics regarding job creation: The distinction among these job types is crucial for EB-5 investors, particularly when it comes to meeting the job creation requirements of the EB-5 program. For example, many investors are unaware that a project that is constructed in less than two years has different rules than a project that takes more than two years to construct.  For a project that takes less than two years to construct, only 75% of the jobs an investor relies upon for their application can be “indirect”.  If a project takes more than two years to construct, that threshold goes up to 90%.  The best mix of “direct”, “indirect” and “induced” jobs will ultimately depend on the unique circumstances of each Project.  The point is that the best projects create situations where investors can minimize the need to rely too heavily on any specific job category by creating a “buffer within the buffer”.  A large number of qualified jobs is step #1.  A diversified mixture of qualified job categories, specific to the circumstances at hand, is step #2. Financial Risk Mitigation of financial risk is a core component of a potential project’s merits.  If the project loses the investor’s financial capital, there are very important, very unfortunate consequences which may arise.   Projects that lose the investment capital for EB-5 investors and do not provide a green card may harm investors twice-over.  Of course, no one wants to lose money.  But EB-5 investors who lose their investment capital may also be involved in a project that fails to produce the required jobs for their green card.  If so, those investors face not only pure financial loss, but may also have difficulty accumulating the necessary financial resources to try the EB-5 process again. In this case, the investor may lose not only dollars, but precious time, in their quest for citizenship. Even if a project does produce a green card despite ultimately losing the investor’s money, then that investor may arrive in the US with far less capital than they expected or needed to start the life they envisioned.  Every investor has a dream of their new life in the United States, and the realization of that dream often requires strong financial resources.  Whether an investor wants to start a new business, expand a previously successful business, fund a child’s education, or simply retire with some level of comfort, their “nest egg” will play an important role.  There are many ways to manage or mitigate the financial risk that will be specific to the given project’s circumstances.   MORE TO COME There is much more to say about the ways immigration and financial risk can be addressed across projects of all types.  Much more will come in later Chapters.  For now, we hope you have enjoyed Chapter 3 of our story, and thank you for your interest as always! The information provided here is not investment, tax or legal advice. You should consult with a licensed professional for advice concerning your specific situation.  This article is educational and informational, and items including policy, program structures, financial models, feasibility studies, and other documentation may change without notification.  Information prepared on electronic media such as PowerPoint, websites, blogs, WeChat, or other methods of delivery are often truncated and summarized to improve readability; details of any financial, tax or legal nature should only be addressed with a trusted licensed professional.

Welcome back to our special series on Southeast Regional Center, LLC (“SRC”).  In today’s article, we discuss observations of failed projects over the years, particularly those projects that were funded prior to the Reform and Integrity Act of 2022. Every project is different, and there are some factors outside of our control including general economic conditions, geopolitics, war, and consumer preferences, to cite just a few examples. But there are many things that can and should be controlled by so-called “professionals” that act as developers or sponsors in the EB-5 marketplace. At SRC, we are extremely passionate about putting our investors first.  We are transparent about each project, our role in it, the expectations of investors related to fees and management, and detailed up-to-date reporting at the project level and at the Regional Center level.   We will provide more detail regarding those efforts in a later article in this series. First, let us take a look at projects that may not have been managed as well as they should and could have been managed. Failed Project Trends Near the end of 2023, SRC decided to gather as much information as possible about projects that have suffered from financial failure, immigration failure, or both.  Our intention was to study the past, because we know that history sometimes repeats itself.  At SRC, we are dedicated to studying the mistakes made by others so that we may do better in protecting our investors from as many risks as possible! The data we have gathered goes back to 2013, but please note this disclaimer:  This data is not all-inclusive of all projects in that timeframe, and we are not allowed to specifically identify projects.  Also, the discussion points presented here are the opinions of SRC and should not be taken as fact. With that being said, here are some of the trends we are noticing: More To Come Our next article will describe how proper due diligence can help investors avoid some of these types of failures.  In order to qualify under the EB-5 Program, investment must always involve risk of loss.  But investors have the power to pursue and account for information about any project that is a candidate for their EB-5 investment, which is exactly what we encourage here at Southeast Regional Center, LLC. The information provided here is not investment, tax or legal advice. You should consult with a licensed professional for advice concerning your specific situation.  This article is educational and informational, and items including policy, program structures, financial models, feasibility studies, and other documentation may change without notification.  Information prepared on electronic media such as PowerPoint, websites, blogs, WeChat, or other methods of delivery are often truncated and summarized to improve readability; details of any financial, tax or legal nature should only be addressed with a trusted licensed professional.

Welcome back to our special series on Southeast Regional Center, LLC (“SRC”).  In the previous article, we explored certain aspects of many failed projects over the years, particularly those projects that were funded prior to the Reform and Integrity Act of 2022. What can we learn from those projects?  More importantly, how can we apply those lessons to try and avoid similar negative outcomes in the future? In this article, we describe a risk management framework that we have used with success over time as a Regional Center.  We recognize that risk management is a dynamic process and can always be improved, but we hope that our fundamental framework provides a useful starting point for investors considering different EB-5 investment projects. FEATURES OF PROJECTS THAT HELP PROTECT CAPITAL Before we explore how to mitigate risk, we need to remember that the priority of investment objectives for EB-5 investors is unique and different than traditional investors.  EB-5 investors must preserve and hopefully grow their financial capital, but they must also secure their green card. Therefore, it only makes sense that the most attractive projects are those that limit the financial downside to the greatest extent possible.   Investors must ask themselves: why take any unnecessary financial risk if I will not be compensated for doing so? That is why the best EB-5 projects are prepared to handle unexpected business events, prolonged periods of underperformance or missed revenue forecasts.  These types of projects are ready for a “rainy day”. Having adequate cash reserves at the project level is a first line of defense that investors should monitor.  But the analysis must go deeper. If investors are interested in protecting the safety of their capital, then the ideal project will have several types of downside protection beyond working capital.   Important examples include: Real Estate Provided as Collateral for the EB-5 Investment Virtually every business needs some physical location in which to house at least part or all of its operations.  In fact, one of the uses of EB-5 investment may involve acquiring the real estate or building space necessary to locate the project, its staff, its equipment and more.  Investors are well-protected when the developer pledges the project’s real estate as security for the EB-5 investment.   Equipment Provided as Collateral for the EB-5 Investment Similar to real estate, most businesses also require some sort of equipment or means of production to be successful.  This can take on my forms, but a great example is a factory that uses heavy equipment during its manufacturing process. Without the equipment, the factory cannot produce, which makes the equipment very valuable.   Corporate and Personal Guarantees Provided as Collateral for the EB-5 investment Investors need to see if the project provides guarantees beyond the physical assets of the business, such as real estate and equipment.  One common type of guarantee is a repayment guarantee, which generally says that under certain conditions, the project will pay back the capital it originally received from the special-purpose entity (the “New Commercial Enterprise”) that funded the project. The Golden Ticket: Diversified Guarantees The best projects will offer investors guarantees backed by the project’s real estate, the project’s equipment, and by the project’s senior executives that are responsible for the venture’s overall success.  The projects currently sponsored by Southeast Regional Center enjoy all three types of guarantees and therefore provide an enhanced level of financial downside protection.  EB-5 Investment Due Diligence from Third Parties Placing USD 800,000 or more in a single investment requires careful consideration, especially if the purpose of the investment is broader than financial return.  That is the exact case with EB-5, and it is why many investors engage third-party due diligence firms to generate a written, well-researched report about a prospective investment’s strengths and weaknesses.   How do investors go about selecting a third-party due diligence provider?  They need to align themselves with a firm that has their best interests in mind.  Often, this could be an attorney, a CPA or a trusted financial advisor that is already serving the investor in some way. Many times, investors find that such a professional may already be helping on a related EB-5 matter, and in that way the choice can be even more straightforward as long as there are no conflicts of interest involved. It is important for investors to recognize they may not have to bear the cost of third-party due diligence on their own.  Investors should first ask whether a due-diligence report from a third-party has been generated already.  If so, it is likely that the investor can access that existing report at a cost that is much lower than if they commission a report on their own.   They might even be able to receive a free copy if the report was commissioned by an agency or firm that represents many investors.  Either way, in this moment in the industry, there are very few good opportunities that do not have an accompanying third-party due diligence report.  And for those deals that do not have one, the question investors should ask, is why? Southeast Regional Center, LLC works with investors and agents of all sizes from many countries and has always worked to ensure that third party due diligence providers have proper access to the Developer client in order to independently assess the prospects of the project.  Besides providing factual information, SRC is not involved in the composition of the report and the report writers attest to their independence within the report.  Just like a CPA audit, the third-party due diligence report must be free from any impression that the Developer or sponsor has exerted any influence over its findings.  In this way, investors can gain an additional level of assurance in their determination of the project’s merits. MORE TO COME To be certain, there does not exist a way to eliminate all sources of financial risk and Developers cannot guarantee with 100% certainty against the risk of loss.  But there are substantial protections that can be provided if the developer is willing to do so.  Investors should be aware that Developers get to choose what they offer in terms of guarantees.  The most successful and safe

What is a “rural area”? A rural area is specifically defined by law.  A rural area is:  Any area other than an area within a standard metropolitan statistical area (MSA) (as designated by the Office of Management and Budget) or within the outer boundary of any city or town having a population of 20,000 or more based on the most recent decennial census of the United States.   It is clear that whether a project is located within a rural area or not is a fact that cannot be manipulated.   Ajin USA’s Joon Georgia manufacturing facility is located at 234 Bruce Yawn Boulevard, Register, GA.  As of the 2020 census, Register had a population of 157. What is “priority processing”? Green card applications are classified by categories.  Applicants are also classified by country of birth.  This system is illustrated by the Visa Bulletin which is published by the US Department of State every month.  By reading the Visa Bulletin, you can see how long it might take for an immigrant visa to become available for a particular type of application and applicant.  Unfortunately, this factor by itself does not fully answer the question: How long will it take for me to get my green card?  In addition to reviewing the Visa Bulletin, which tracks the progress of immigrant visa availability, an applicant must also find out how long it might take USCIS to process an investor’s petition.   As of the writing of this article, it is currently taking USCIS a reported 56 months to process an I-526 petition.  It should be noted that the current USCIS processing time reports do not seem to specifically track I-526E petitions submitted after passage of the Reform and Integrity Act of 2022 (RIA).  Still, it is common knowledge in the EB-5 industry that USCIS processing of any I-526 petitions is normally very backlogged.  Within the RIA is a commitment to process I-526E petitions for investors in a Regional Center-sponsored rural area project on a “priority” basis.  There is no firm definition of how quickly priority processing will be completed.  Based on industry-wide experience, it appears that priority processing means adjudication of the I-526E petition in about 11 to 12 months. Why is this information important? There are only 10,000 immigrant visas available every year for the EB-5 program.  Out of these 10,000 immigrant visas, 2,000 visas are set aside for projects located in a “rural area.” This is one of the new EB-5 program features provided by the RIA.  Because the maximum number of immigrant visas that can be allocated to each country is only 7%, the set aside of 2,000 visas for rural area projects could lower the risk of immigrants from countries with very high visa demand getting stuck in the years-long backlog that previous EB-5 investors have been suffering.   At the same time, however, the opportunity for an overall quicker application process provided by investment in a rural area project makes such an investment very attractive to many investors.  In addition, with the increase of the I-526E petition filing fee from $3,675 to $11,160 set to take effect on April 1, 2024, EB-5 visas for investments in rural area projects could be quickly used up. The information provided here is not investment, tax or legal advice. You should consult with a licensed professional for advice concerning your specific situation.  This article is educational and informational, and items including policy, program structures, financial models, feasibility studies, and other documentation may change without notification.  Information prepared on electronic media such as PowerPoint, websites, blogs, WeChat, or other methods of delivery are often truncated and summarized to improve readability; details of any financial, tax or legal nature should only be addressed with a trusted licensed professional.

Thank you for joining us for Chapter 7, focused on the Electric Vehicle (EV) Industry. The aim of this chapter is to provide a concise overview of the market outlook for electric vehicles, explore the landscape of future developments, and discuss the potential implications of prospective party changes in America. Current EV Industry and Outlook The global EV industry is on the cusp of a major transformation, driven by a confluence of technological advancements, regulatory changes, consumer demand, and environmental concerns. The industry is expected to grow rapidly, with EVs becoming key players in the automotive sector. Graham Evans, research director of S&P Global Mobility’s Auto Supply Chain and Technology states that EVs are expected to surge to over 13.3 million units worldwide in 2024. This would represent about 16.2% of global passenger vehicle sales. This is a substantial increase from the 9.6 million EVs sold in 2023, which made up 12% of the market.  According to Statista, a market research company based in Germany, the global EV market (including battery-electric vehicles, plug-in hybrid vehicles, and fuel cell electric vehicles) is forecast to reach around 18 million vehicles by 2026. Over 95 percent of these vehicles are projected to be passenger vehicles. This growth highlights the fast adoption rate and the rising acceptance of EVs as a viable alternative to traditional vehicles with internal combustion engines. Several factors are driving the transformation in the EV industry. Technological advancements are enhancing EV performance, range, and affordability. Innovations like solid-state batteries promise longer ranges and faster charging, addressing major buyer concerns. Additionally, improvements in electric motors and power electronics are boosting EV efficiency and reliability. Regulatory policies and government incentives are also pivotal in promoting EV adoption. Stringent emission regulations and targets for reducing greenhouse gases are compelling automakers to prioritize EV production. Furthermore, incentives such as tax rebates and grants are making EVs more appealing financially, spurring market growth. Consumer demand is rising, driven by environmental awareness and the pursuit of sustainable, eco-friendly transportation. The younger generation, in particular, prefers EVs, influencing automakers to diversify their electric offerings and invest in electric mobility. The expansion of EV charging infrastructure is also critical to supporting the growth of the EV market. Both governments and private sectors are investing in charging networks to provide easy access for EV owners, reducing range anxiety and broadening the appeal of electric vehicles to more consumers. The automotive industry’s commitment to electrification is clear, with major automakers planning to launch various electric models in the near future. This shift signifies a move away from traditional fossil fuel vehicles and is sparking innovation, resulting in a wider range of electric vehicles to suit various consumer needs and preferences. In conclusion, the EV industry is undergoing a significant transformation, driven by innovation, regulation, consumer interest, and environmental priorities. The rapid increase in EV sales signifies a major shift towards sustainable transportation, reshaping the future of mobility and marking a pivotal moment in the automotive sector’s evolution. The Impact of Political Shifts on the EV Industry  The United States is at the forefront of the EV revolution, poised for remarkable market growth. According to Statista, revenues are forecast to hit US$82.8 billion in 2024, with an expected compound annual growth rate (CAGR) of 18.20% from 2024 to 2028, leading to a projected market volume of US$161.6 billion by 2028. This significant growth is primarily fueled by government incentives, rigorous emission regulations, and a rising consumer demand for sustainable transportation alternatives. The Inflation Reduction Act (IRA) stands out as one of the most positive contributors. Focusing on tax incentives and grants, the IRA is designed to promote private sector investment in clean energy, showing a significant departure from past regulatory practices and ensuring resilience against policy reversals. Its impact on the EV sector is demonstrated by the significant economic boost it has provided, as evidenced by the findings of EV Jobs Hub (EVJH) of the Bluegreen Alliance Foundation. According to their research, the sector has seen a remarkable influx of $173 billion in investments, which has facilitated the creation of 212,000 new jobs, highlighting the vast economic benefits and the potential for further growth and innovation within the industry. This economic upswing is particularly significant considering potential political uncertainties, such as the prospect of a Trump administration return. Trump has expressed intentions to repeal the IRA, but the inherent complexities of the U.S. legislative system add a robust layer of stability, making such reversals difficult to achieve.  Additionally, the widespread geographical distribution of these investments underscores the non-partisan nature of the sector’s economic advantages. Notably, substantial funds have been channeled into traditionally Republican districts, with states like Michigan and Georgia each benefiting from over $23 billion in investments according to EVJH. This broad-based support reflects the universal appeal and importance of the EV sector, transcending political boundaries and underscoring its vital role in the national economy.  In essence, the strong market for EVs is not just a reflection of technological and environmental advancements but also a significant driver of bipartisan economic growth, making a compelling case for the continued support and development of the EV industry in the United States. The information provided here is not investment, tax or legal advice. You should consult with a licensed professional for advice concerning your specific situation.  This article is educational and informational, and items including policy, program structures, financial models, feasibility studies, and other documentation may change without notification.  Information prepared on electronic media such as PowerPoint, websites, blogs, WeChat, or other methods of delivery are often truncated and summarized to improve readability; details of any financial, tax or legal nature should only be addressed with a trusted licensed professional.

Welcome back to our special series on Southeast Regional Center, LLC (“SRC”).  So far in this series, we made several references to Ajin Industrial and its subsidiaries that have worked with SRC on projects over the years.  In today’s article, we will spend a bit more time highlighting Ajin Industrial, a company publicly traded on the Korean exchange, and its unique position in the automotive marketplace.  We will point out aspects of Ajin Industrial’s business model and key customer relationships that have attracted previous investors so that you can use it as an example during your own EB-5 investment process. Ajin Industrial Co, Ltd. Ajin Industrial Co., Ltd. (“Ajin Industrial”), a company based in South Korea, has a rich history that reflects its growth and development in the automotive industry. Founded in 1976, Ajin Industrial has established itself as a key player in the manufacturing of automobile parts, particularly focusing on stamped metal car body parts (such as door panels, engine compartment aprons and more) on an original equipment manufacturing (OEM) basis. The company’s unique skillset has enabled it to supply products as a critical tier 1 supplier to the Hyundai Motor Group (“HMG”).  These two firms have enjoyed a successful relationship for more than four decades, with Ajin Industrial providing stamped metal body parts to generations of vehicle models at different factories around the globe.   The reasons behind Ajin’s success in the auto industry start with the company’s leadership, its culture and a hyper- focus on product quality and customer service.  Ajin Industrial is the best at its craft because of these internal core strengths.  But Ajin Industrial’s remarkable growth must also be credited in part to the growth, financial health and reputation of its key account: Hyundai Motor Group.  Hyundai Motor Group Hyundai Motor Group’s history and success speak for itself.  Headquartered in Seoul, South Korea, HMG is a publicly traded multinational automotive manufacturer that owns the renowned Hyundai brand as well as a large stake in Kia Motors.  Aside from being a Fortune 500 Company and the third largest auto manufacturer in the world, HMG has positioned itself as a leading manufacturer of electric vehicles in the United States.   The company’s push into EV, especially in the United States, is highly strategic as it aligns with the US government’s explicit goal of reducing carbon emissions and promoting the adoption of clean energy.  America signaled its resolve in this goal via the Inflation Reduction Act of 2022, which provides tax credits for electric vehicle purchases.  In response, Hyundai pledged more than USD 7.59 billion in the construction of its new EV Metaplant located near Savannah, Georgia, USA, with a commitment to further investment. Ajin is a Key Supplier to Hyundai’s new EV Metaplant Hyundai and Ajin Industrial’s business relationship takes supply chain dynamics to the next level.  Ajin Industrial has supplied Hyundai with critical parts for more than 40 years.  During that time, Ajin Industrial’s culture of professionalism, quality and customer service impressed Hyundai so much that they selected Ajin Industrial as the primary supplier of the stamped metal body parts necessary for the production of each Hyundai model. In fact, the level of commitment and trust is so great that Hyundai is essentially reliant upon Ajin for the stamped metal body parts needed for its cars.  It would be extremely difficult for Hyundai’s factories to operate without Ajin’s specific inputs.   Ajin has earned this trust and benefits from it, but the responsibility is two-fold.   Hyundai’s production process is so precise, they ask Ajin Industrial to produce specific quantities of the parts just at the moment they are needed.  In manufacturing terms, this is called “Just-in-Time” and “Just-in-Sequence” inventory management, which means that Ajin essentially produces the amount required to satisfy Hyundai’s needs on-demand.  In this way, the financial success of both companies are intertwined.  Hyundai is a key customer for Ajin Industrial.  At the same time, Ajin Industrial is a critical key supplier for Hyundai. Each company’s individual success and growth serves to promote the same for its counterpart.   That is in large part why Hyundai has committed direct financial resources in support of Ajin Industrial’s growth, including its latest factory in Bulloch County, Georgia, which once again will be the primary supplier of stamped metal parts for Hyundai’s USD 5.5 billion EV Metaplant in nearby Bryan County, Georgia. Key Takeaways As you evaluate EB-5 investments currently available in the marketplace, be sure to ask yourself and the Developer the following questions: What is the history of the Developer? Who are the Developer’s key customers? Even if these questions are answered in a satisfactory manner, we must examine the internal strength of the Developer in a much deeper format.  In the next Chapter of this special series, we will do so, always providing examples along the way. The information provided here is not investment, tax or legal advice. You should consult with a licensed professional for advice concerning your specific situation.  This article is educational and informational, and items including policy, program structures, financial models, feasibility studies, and other documentation may change without notification.  Information prepared on electronic media such as PowerPoint, websites, blogs, WeChat, or other methods of delivery are often truncated and summarized to improve readability; details of any financial, tax or legal nature should only be addressed with a trusted licensed professional.

Welcome back to our special series on Southeast Regional Center, LLC (“SRC”).  So far, we have explored various aspects of our firm’s internal approach to selecting and investing in EB-5 projects.  In this article, we will examine the importance of external support to the success of our investments – especially support from the government.   In our experience, investments within industries that have the interest and support of the government, experience better financial outcomes and faster immigration processing times versus alternatives that do not have this support.    That is why we pay careful attention to the policies and priorities that our federal and state governments signal to the public, especially when they do so through legislation.  The electric vehicle industry is a great example.  EVs and the batteries that power them are part of a larger clean-energy agenda that has received strong backing from elements of both major political parties in the United States, as well support at the federal and state levels.  Our nation’s executive and legislative branches made a clear statement of its priorities for the EV industry with the passage of the Inflation and Reduction Act of 2022 (“IRA”), which provides several incentives to consumers that purchase EVs, including a $7,500 tax credit for vehicles that are produced in America. The state of Georgia wasted no time crafting its own agenda to take advantage of the broad-based support for the EV industry.  In the same year Congress passed the IRA, Governor Brian Kemp and his economic development team stunned the nation in announcing a new EV plant by Hyundai Motor Group in Bryan County near Savannah, Georgia.  The “Metaplant”, which is 3,000 acres in size and is Hyundai’s largest EV facility in the world, represented an initial investment of more than   US$5.5 billion.  The company’s investment has since grown to US$7.59 billion and is expected to produce around 8,500 jobs in the area. Hyundai is considered as more than just a business in the State of Georgia.  On February 27, 2024, Georgia Governor Brian Kemp publicly praised the statewide benefits and opportunities brought about through its long-term partnership with Hyundai. “When we celebrated the groundbreaking of Hyundai’s new electric vehicle and battery manufacturing facility in Bryan County, we knew it would unleash transformational job creation and investment in that entire region of our state,” Gov. Kemp said shortly after the deal was announced.   The impact of the Hyundai’s investment across the state of Georgia has surpassed all initial expectations in a manner none could have predicted.  In February of 2024, the Governor’s office announced that the combination of all of Hyundai’s EV projects in Georgia (including the Metaplant, which is set to start production in the end of this year) has resulted in US$12.6 billion in total investment, which will create more than 12,000 direct, long-term jobs.   This level of economic growth is unprecedented in the state of Georgia, and we at SRC believe it is only the beginning.  That is why we are supporting factories and investments that are positioned to contribute to the EV ecosystem that is sprouting up across not only Georgia but across the southeast and sunbelt regions of the United States.  We have faith in the long-term viability of projects in this industry not only because of the growing demand for EVs but also because our federal and state governments are transparently pushing for its success at all levels.  All investments involve risk and uncertainty.  The goal is to mitigate those risks to the greatest extent possible.  One clear way to do so is to wager in the same direction as the government and choose projects that are aligned with its interests.  In our experience, we have found this strategy benefits the financial results of our projects as well as the immigration outcomes for our EB-5 investors.  The information provided here is not investment, tax or legal advice. You should consult with a licensed professional for advice concerning your specific situation.  This article is educational and informational, and items including policy, program structures, financial models, feasibility studies, and other documentation may change without notification.  Information prepared on electronic media such as PowerPoint, websites, blogs, WeChat, or other methods of delivery are often truncated and summarized to improve readability; details of any financial, tax or legal nature should only be addressed with a trusted licensed professional.

Thank you for joining us on our last chapter of our 10 part series. The aim of this chapter is to provide a more detailed description on Southeast Regional Center’s (SRC) team and SRC’s Trusted Partners. SRC’s Managing Member and CEO:  Moses Choi Moses Choi has over 32 years of experience working within the finance industry.  His background as an Investment Banker with JP Morgan Securities Inc, along with his experience in Loan Underwriting, positioned Mr. Choi to successfully develop and manage EB-5 projects for SRC since its inception in 2010. Mr. Choi incorporates an “Investor First” approach when selecting, structuring and managing projects within the EB-5 industry.   As CEO, he “seeks a high standard for his EB-5 projects” as quoted in USA Today’s February 22, 2024 article.  The online newspaper International Business Times states that “SRC’s commitment to transparency and strict adherence to legal frameworks instills confidence among these investors, ensuring the integrity and sustainability of both the immigration process and the manufacturing projects underlying each investment.” SRC’s Board Advisor:  Maurice “Morrie” Berez Nicknamed the “Father of EB-5,” Morrie Berez brings over 38 years of experience working in the Federal Government, including serving as the former Chief Immigration Officer in charge of Regional Center designation and EB-5 petition adjudication. Mr. Berez’s seminal work within the USCIS fundamentally shaped the EB-5 industry and he continues to bring valuable insights to SRC’s projects, ensuring that they remain in compliance with USCIS regulations and policies. SRC’s CFO:  Michael Bowen, CFA Michael Bowen is a CFA® Charterholder who has been working within several private partnerships in the areas of real estate development and management for the past four years.  His previous work with Prudential Global Investment Management  originating commercial loans furnishes Mr. Bowen with the keen insights he now applies to the organizational and financial structuring of SRC’s EB-5 projects.  Mr. Bowen has also served as a university lecturer on  the subjects of Finance and Statistics.  He  is a graduate of Georgetown University’s McDonough School of Business and the University of Georgia’s Terry College of Business. SRC’S TRUSTED PARTNERS Xian Zhang, China Operations Manager [Investment Beijing] Ms. Zhang has over a decade of EB-5 experience providing expert assistance to individual investors and their consultants and coordination for SRC’s marketing activities.   With an undergraduate degree earned in China and a graduate degree earned in the United States, Ms. Zhang is fully bilingual in Mandarin Chinese and English and has deep experience with both Chinese and U.S. financial systems and business cultures. John Pratt, Esq. [Kurzban, Kurzban, Tetzeli & Pratt] Mr. Pratt is renowned for his expertise in all areas of immigration and nationality law, including employment-and investment-based immigrant and nonimmigrant matters and federal court litigation.  Mr. Pratt has appeared numerous times on local, national and international television as a commentator analyzing immigration and nationality law matters.  He is a frequent speaker as a subject matter expert at national and local conferences.  In addition, he was selected for inclusion in Who’s Who in American Law, Who’s Who in America, Who’s Who in the World.  He has also been selected as one of the overall top attorneys in Immigration and Nationality law by the publication Best Lawyers in America and is AV Rated by Martindale-Hubbell, which indicates the highest level of legal ability and ethics. Robert Divine, Esq. [Baker, Donelson, Bearman, Caldwell & Berkowitz, PC] Mr. Divine has extensive experience serving clients throughout the world in the arrangement of all types of business-based temporary and permanent immigration status. He provides masterful representation of many business developers in creating and managing EB-5 Regional Centers. He is the elected Vice President of the national industry association of EB-5 Regional Centers: Invest in the USA (IIUSA). He also represents individual investors as well as project developers and supplies key expertise to attorneys and licensed securities brokers engaged with securities law compliance issues in private placement offerings to investors, to economists identifying “targeted employment areas” and projecting indirect job creation, and to attorneys obtaining U.S. Government (OFAC) licenses in order to serve investors from restricted countries.  Cherylle C. Corpuz, Esq. [SRC’s Of Counsel] Cherylle C. Corpuz has over 30 years of dedicated immigration law experience.   Ms. Corpuz has been with SRC since its early stages and continues to provide valuable guidance and oversight for our immigrant investors’ visa process.  Ms. Corpuz supplies an extra layer of safety by reviewing each investor’s petition before it is filed at USCIS.  Ms. Corpuz has a diversity of experience from managing a refugee resettlement agency to managing the immigration practice of an Am Law 100 firm.  In addition to serving in various leadership roles for the Philadelphia chapter of the American Immigration Lawyers Association, Ms. Corpuz was the lead instructor for the inaugural immigration law clinic at the legacy Temple University School of Law.  Ms. Corpuz is also an experienced federal court litigator with precedent decisions in the Courts of Appeal for the Third and Fourth Circuits.  Vermilion Consulting [SRC’s Economist] The lead economist of Vermilion Consulting is Kimberly R. Atteberry.   Ms. Atteberry served as Chief of the Investment & Economic Analysis Division for the Department of Homeland Security from 2009 to 2011. Vermilion Consulting helps varied organizations in the public and private sectors leverage the benefits of the federally-mandated Immigrant Investor Program (EB-5). Vermilion provides expert advice on project feasibility, EB-5 compliant structures, job creation methodology, and targeted employment area (TEA) analysis. Her interests and skills include putting the right people and organizations in touch with each other, finding novel solutions to difficult issues, and working within a team framework to address problems. **The listed “Trusted Partners” do not recommend or endorse any investment opportunity, do not guarantee USCIS approval of any filing, and encourage all prospective investors to consult their own business and legal advisors in evaluating any investment.