Functional shift, a productive word formation in English, converts the functional status of a word without changing its form. A previous event-related potential study reported that functional shift elicited left anterior negativity (LAN) and P600 effects in first language processing, suggesting that shifted words triggered syntactic processes in native English speakers. Using the same materials and experimental methods, this study investigated the processing of functional shift in English as a second language, asking Korean learners of English to make acceptability judgments of sentences containing a functional shift, a semantic incongruity, a double violation, or no violation. The results revealed that functional shift elicited significant N400 effects, indicating that Korean participants processed functionally shifted words as semantic anomalies. Our finding points to the possibility that the mental representation of functional shift differs in L1 and L2.