The Donald Trump administration is institutionalizing a plan to impose a high fee of more than $100,000 (about 140 million won) when applying for the high-skilled professional visa (H-1B). A severe blow is expected to the employment prospects in the United States for Korean talent, who receive around 2,000 H-1B visas each year.
On the 24th (local time), according to major media reports, the Department of Homeland Security posted a draft rule in the Federal Register requiring new H-1B applicants to pay a $103,265 (about 143 million won) fee. The move is meant to cement President Trump's fee proclamation from September last year into a formal rule. While the existing proclamation mainly targeted applicants outside the United States, the new draft also levies a large sum on those residing in the United States, such as graduates of U.S. universities preparing for employment. However, university employees such as professors, nonprofit research institutions, and applicants to hospitals in rural areas are exempt from the fee.
The H-1B visa is issued to workers in science, technology, engineering, and mathematics (STEM). It is issued by lottery, with an annual cap of 85,000. According to the Department of Homeland Security's fiscal year 2024 data, India accounted for 71% and China 11.7% of approved H-1B workers, ranking first and second. Korea ranked fifth at 1%. Statistics indicate that about 2,000 Koreans receive this visa each year and are residing in the United States. However, considering that even big tech corporations are reluctant to shoulder an additional expense of more than 100 million won per new hire, the threshold for high-skilled Korean workers to find jobs in the United States is at risk of rising sharply. Bloomberg reported that visa applications had already plummeted after last year's proclamation.
The measure is one of the Trump administration's hard-line immigration policies that prioritize domestic jobs. Vice President JD Vance said on the social media platform X, "If American corporations need workers, they should hire and train Americans," defending the fee plan. U.S. Citizenship and Immigration Services (USCIS) Spokesperson Zach Keller also said, "The newly proposed fee is intended to recoup the immigration program adjudication and its support expense that the federal government would otherwise have to cover with taxpayer money." The government plans to allocate the estimated $8.8 billion (about 12 trillion won) in annual H-1B fee revenue to budgets such as the Immigration and Customs Enforcement (ICE).
Industry, now with a narrower path to bring in top talent, is pushing back strongly. Neil Bradley, executive vice president at the U.S. Chamber of Commerce, criticized that it "will create an enormous cost barrier for startups and small businesses." The Trump administration is also considering imposing high fees on the Optional Practical Training (OPT) program, in which international students work after graduation, further narrowing the position of foreign talent. Jeremy Neufeld of the Institute for Progress told the Washington Post (WP), "Even large companies will not pay this fee for H-1B employees."
Legal controversy is also expected to intensify. In June, the U.S. District Court for the District of Massachusetts ruled that "the president has neither the authority nor delegated authority to impose a tax on H-1B petitions," deeming it unlawful.