December 17, 2019

The Korean National Assembly is debating tougher charges for the companies of unlawful residents. For those of you voluntarily reporting unlawful residence by 28 February 2020, penalties is going to be reduced or exempted.

Penalty Increases

Unlawful residents are at the mercy of fines including KRW 1,000,000 for illegal stays of significantly less than one thirty days to KRW 20,000,000 for unlawful remains of three years or even more.

The utmost penalty for companies of unlawful residents is KRW 20,000,000 OR 36 months’ imprisonment. The proposed amendment presently under conversation would increase this to KRW 50,000,000 AND 5 years of imprisonment.

Voluntary Reporting for Prohibited Residents

For unlawful residents who voluntarily report their status that is residential by February 2020 and therefore are scheduled to go out of the united states by 30 June 2020:

• The penalty charge shall be exempted.
• A “Certificate of Voluntary Departure” may be released, permitting them to re-apply for the visa that is korean the long run. On reapplying, they’ll certainly be granted a single-entry C3 visa allowing a maximum stay of 3 months. Then leave the country within 90 days, and without committing any illegal activities, they may qualify for multiple entries and a longer duration of stay the next time they apply for a visa if they.
• They will be permitted to submit an application for TOPIK (Test of Proficiency in Korean). When they get degree 2 or above, they’ll be permitted to make an application for an E9 visa (for employees from specific nations just).

For unlawful residents who voluntarily report their status that is residential by February 2020 but are planned to go out of the united states after 30 June 2020; OR

For unlawful residents that do maybe maybe not voluntarily report their unlawful domestic status by 28 February 2020 and they are caught by federal government research after 2 March 2020:

• The penalty cost shall be imposed and also the violation duration is supposed to be calculated from 1 March 2020.
• Any foreign national who paid a penalty fee for illegal residence will be banned from re-entry to South Korea for between six months and one year whether or not they voluntarily reported their residential status.
• Those that usually do not spend the penalty charge in complete will soon be forever prohibited from entering Southern Korea.

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Voluntary Reporting for Companies

Manufacturing industry

• The voluntary reporting system will operate between 11 December 2019 and 31 March 2020.
• The penalty fee will be exempted and their illegally-resident employees will be allowed to stay for three more months from the reporting date for employers who report during this period.

Agriculture and fishing industry

• The voluntary reporting system will run between 11 December 2019 and 15 January 2020.
• For companies who report in this particular duration, the penalty cost will likely be exempted and their illegally-resident employees has appropriate possibilities for regular work. a visa that is new for regular employees (E8) is under conversation during the Ministry of Justice.

Tiny and businesses that are medium-sized the Employment allow System (EPS)

• The voluntary reporting system will run between 11 December 2019 and 31 March 2020.
• For employers whom report in this duration, 30% regarding the penalty charge shall be imposed. Nonetheless, if they are caught by federal government investigation with no reported, 100% for the cost is likely to be imposed and they’ll be prohibited from employing international nationals for at the least 36 months. The penalty cost will be determined by immigration officers based on the length of the time of breach.
• For unlawful residents reported by their companies in this period, 30% of this penalty charge may be imposed, and they’ll be permitted to work on the sponsoring business until their visa that is e9 expires. Them to find another job if they prefer to work elsewhere, the Ministry of Employment and Labor will help. But, if they’re caught by federal government research with out reported, 100% associated with the penalty fee is supposed to be imposed plus a forced departure order.

Case Studies

Case 1

A D8 visa owner sponsored by company A, inadvertently missed the expansion due date for his or her Alien Registration Card (ARC).

• A penalty cost will be imposed. The time scale of breach will soon be determined through the time following the ARC expiration date.
• In the event that immigration officer discovers that the application form due date had been missed in error, then ARC owner is going to be exempted through the ban on re-entry.
• All of the needed documents must be prepared and, moreover, both ARC owner and manager must not have appropriate violations and taxes that are unpaid.
• There is absolutely no big change set alongside the present policy.

Situation 2

An D8 visa owner sponsored by business a has additionally been working at business B, which can be within the group that is same company A.

The visa owner was compensated from both entities but his D8 visa ended up being sponsored by business A only, while the ongoing just work at business B had not been reported to your immigration workplace.

• A penalty charge is likely to be imposed for the ARC company and holder B.
• The time of breach shall be determined through the date the visa owner received re re payments from business B, that exist via their withholding tax certificates.
• The re-entry ban (for 6 months to a single 12 months) will be different from case to situation, in the discernment of immigration officers, however it is most likely that to be employed generally in most situations. The likelihood of a re-entry ban in these instances is a new policy.
• The D8 visa holder and their 2nd workplace want to show it was a straightforward error and not deliberate income tax avoidance.

Situation 3

An E9 visa owner has finished work on the visa sponsor business (company A). The E9 visa has validity that is remaining together with owner has obtained a unique work at an unusual company (company B) to the office through to the E9 expiration date.

• Aside from visa type, working at a company that is non-sponsoring unlawful therefore the Korean federal federal government will impose the stiffest regulations in these instances.
• A penalty fee both for manager and worker is going to be determined through the date the visa holder began work on business B.
• Year the visa holder will also receive a departure order and will be banned from re-entry to South Korea for between six months and one. If the penalty is certainly not compensated, the ban will be permanent.

Companies whom could be impacted are encouraged to contact a Newland Chase immigration consultant for case-specific advice.

For general advice and information on immigration and company visit Southern Korea, please contact us.