Trump's H-1B visa fees likely to become new flashpoint between Seoul, Washington

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Trump's H-1B visa fees likely to become new flashpoint between Seoul, Washington

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A poster showing the Trump Gold Card is seen as U.S. President Donald Trump signs executive orders on the new visa fee at the White House on Sept. 19 in Washington. [AP/YONHAP]

A poster showing the Trump Gold Card is seen as U.S. President Donald Trump signs executive orders on the new visa fee at the White House on Sept. 19 in Washington. [AP/YONHAP]

 
The Donald Trump administration’s imposition of a $100,000 visa fee on highly skilled tech professionals is likely to become a flashpoint in ongoing discussions between Seoul and Washington over visa reform, particularly as the recent mass detention in Georgia has gained momentum as a diplomatic concern.
 
Still, the immediate impact on Korean companies is expected to be minimal as of now, as few of their workers in U.S. operations are employed under the H-1B visa. Instead, the new policy is likely to pose a far greater challenge to U.S. Big Tech firms, such as Amazon and Meta, which primarily employ high-tech professionals from India and China.
 

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Trump on Friday inked an executive order that imposes a $100,000 fee per H-1B visa application, which requires at least a bachelor’s degree, in a move aimed at pressuring companies to prioritize hiring American workers over foreign talent.
 
"The company needs to decide [...] is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American," U.S. Commerce Secretary Howard Lutnick said, adding that "all of the big companies are on board."
 
Facing mounting backlash, Trump clarified that the fee would instead be a one-time charge on Saturday. 
 
The $100,000 fee is still a significant increase, as the current H-1B visa application only charges a lottery registration fee of $215 and an employer petition filing fee of some $780. 
 
Korean workers line up seeking to apply for U.S. visas at the U.S. Embassy in Seoul in central Seoul on Sept. 16. [YONHAP]

Korean workers line up seeking to apply for U.S. visas at the U.S. Embassy in Seoul in central Seoul on Sept. 16. [YONHAP]

 
This measure is expected to complicate ongoing talks between Korea and the United States aimed at visa system reforms, after the two made a consensus of a formation of a formal working group, after the U.S. Immigration and Customs Enforcement arrested 475 workers — including 317 Korean nationals — at a Georgia manufacturing facility jointly operated by Hyundai Motor and LG Energy Solution on Sept. 4 citing immigration violations. Of them, 170 Koreans were traveling under ESTA, while 146 were on B1 business or B2 tourist visas. One held a valid Employment Authorization Document but was also detained.
 
Korean companies have long called for a dedicated visa quota for Koreans for H-1B visas. Each fiscal year beginning Oct. 1, the U.S. government issues 85,000 new H-1B visas. Significant portions of the quotas are preassigned to major countries, such as India and China, while the remaining nations, including Korea, must rely on a lottery system. Roughly 2,000 Koreans reportedly receive H-1B visas each year.
 
However, with the proposed visa fee, Korean firms could face astronomical costs, compelling the government to reconsider its current plans.
 
"The government is closely monitoring the U.S. announcement on the H-1B visa reforms and is comprehensively assessing the potential impact of these measures on Korean companies and skilled professionals seeking to enter the United States," a Foreign Ministry official told reporters on Sunday. 
 
Once the working group is operational, Korea is expected to prioritize discussions on broadening the scope and eligibility criteria for the short-term business visa, specifically the B-1 visa.
 
The joint battery plant by LG Energy Solution in Georgia remains deserted, with construction fully suspended after the recent raids from the U.S. Immigration and Customs Enforcement. [YONHAP]

The joint battery plant by LG Energy Solution in Georgia remains deserted, with construction fully suspended after the recent raids from the U.S. Immigration and Customs Enforcement. [YONHAP]

 
In reality, the most significant impact is likely to be felt by U.S. firms. In fact, Elon Musk, the South African-born CEO of Tesla, himself entered the United States on an H-1B visa and founded the EV giant. Even Melania Trump, the wife of Trump and a former model, first came to the U.S. under an H-1B visa.
 
Amazon had the most H-1B visa approvals, with 10,044 approvals granted, followed by Indian IT giant Tata Consultancy Services, which received 5,505 approvals. Microsoft was third, followed by Meta, Apple, and Google, according to data from the U.S. Department of Homeland Security. 
 
The majority of visa holders originate from India, which accounts for 71 percent, and China, with 11 percent, according to a report from U.S. Citizenship and Immigration Services, implying that tech firms are heavily reliant on foreigners for talent. Korea accounted for just 3,983 visa recipients, representing a mere 1 percent of the total.
 
Meanwhile, a cautiously optimistic outlook emerges that the measure could offer Korea a chance to halt the loss of highly skilled professionals to the United States. With talent acquisition at the heart of the global technological supremacy battle, Korea has historically experienced a steady outflow rather than an influx of skilled workers, partly due to less competitive working conditions.
 
As of last year, Korea recorded a net outflow of 0.36 AI specialists per 10,000 people, indicating that more AI talent left the country than entered. This places Korea near the bottom, ranking 35th out of 38 OECD countries, according to a report by the Korea Chamber of Commerce and Industry. 
 
 

BY SARAH CHEA [[email protected]]
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