President Trump Raises H-1B Visa Fee to $100,000

President Trump issued an executive order increasing the H-1B professional work visa fee to $100,000 (approximately 140 million Korean won), a 100-fold increase. The order took effect at midnight on the 21st and is set to expire in one year, though extensions are possible.

Key Highlights

• New $100,000 one-time fee applies to new H-1B visa applications; renewals and current holders exempt.
• White House aims to discourage replacing American workers with foreign labor while reforming wage levels under the policy.

President Trump explained that the fee is a "one-time charge applied only during the initial petition, not an annual membership fee," and that it does not apply to current visa holders. However, confusion persists.

The H-1B visa was created to hire foreigners with expertise in science, technology, engineering, and mathematics (STEM) fields where skilled US workers are scarce. The Immigration and Nationality Act (INA), signed by former President George H.W. Bush in 1990, is known to have allowed Elon Musk, Tesla's CEO, to enter the IT industry through this visa.

According to the US Citizenship and Immigration Services, 85,000 new H-1B visas are issued each year (65,000 for bachelor's degree holders and 20,000 for master's and doctoral degree holders). Every fiscal year, applications open on October 1st, and hundreds of thousands of people typically apply. Last year, 758,000 applicants applied for the visa.

Last year, India received the most H-1B visas, totaling 283,397 (71% of all visas). China followed with 46,680 visas (11.7%). South Korea ranked fifth with 3,983 visas (1.0%).

Since the number of H-1B visas granted to Koreans is relatively small, the impact on Korean businesses is expected to be minimal. Korean companies with US subsidiaries typically use L-1 or E-2 visas for intracompany transfers. The visas used in the recent detention of Hyundai Motor and LG Energy Solution employees were L-1 or E-2 visas.

Also Read: Trump Replaces EB-5 Visa with Costly 5 Million USD 'Gold Card' Visa 

However, international students in STEM fields studying in the United States may face significant challenges. To obtain IT industry jobs, they must first transition from student (F-1) visas to Optional Practical Training (OPT) and then apply for H-1B visas. Park Jeong-yong, a US attorney, stated, "Realistically, companies will find it difficult to hire international students while paying the additional $100,000 fee. New graduates entering the job market are likely to face even greater disadvantages."