December 17, 2019

The Korean National Assembly is debating tougher charges when it comes to companies of illegal residents. For all those voluntarily reporting unlawful residence by 28 February 2020, charges will likely to be paid off or exempted.

Penalty Increases

Unlawful residents are at the mercy of fines which range from KRW 1,000,000 for unlawful remains of significantly less than one to KRW 20,000,000 for illegal stays of three years or more month.

The most penalty for employers 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 domestic status by 28 February 2020 and tend to be scheduled to go out of the nation by 30 June 2020:

• The penalty charge shall be exempted.
• A “Certificate of Voluntary Departure” is going to be given, permitting them to re-apply for the visa that is korean the long term. On reapplying, they’ll certainly be released a single-entry C3 visa allowing a maximum stay of 3 months. Should they then leave the united states within 3 months, and without committing any unlawful tasks, they might qualify for multiple entries and an extended timeframe of stay the very next time they make an application for a visa.
• They will be permitted to submit an application for TOPIK (Test of Proficiency in Korean). When they get degree 2 or above, they will be permitted to make an application for an E9 visa (for employees from particular nations just).

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

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

• The penalty cost shall be imposed plus the violation period are going 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.
• People who usually do not spend the penalty fee in complete will likely be forever forbidden from entering Southern Korea.

Voluntary Reporting for Companies

Production industry

• The reporting that is voluntary will run between 11 December 2019 and 31 March 2020.
• For employers whom report during this period, the penalty charge is supposed to be exempted and their illegally-resident workers may be permitted to remain for three more months through the reporting date.

Agriculture and fishing industry

• The reporting that is voluntary will run between 11 December 2019 and 15 January 2020.
• For employers who report inside this duration, the penalty cost would be exempted and their illegally-resident workers could have appropriate possibilities for regular work. a visa that is new for regular employees (E8) is under discussion in 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 companies whom report in this particular duration, 30% of this penalty charge shall be imposed. Nonetheless, if they are caught by government research without having reported, 100% associated with the cost should be imposed and they’re going to be prohibited from hiring foreign nationals for at the least 36 months. The penalty cost shall be calculated by immigration officers on the basis of the period of the time of breach.
• For illegal residents reported by their companies inside this duration, 30% associated with penalty cost 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. However, if they’re caught by government research with out reported, 100% regarding the penalty charge is likely to be imposed and also a departure order that is forced.

Case Studies

Case 1

A D8 visa owner sponsored by company A, unintentionally missed the expansion due date with regards to their Alien Registration Card (ARC).

• A penalty cost will be imposed. The time scale of breach will likely be calculated through the time after the ARC expiration date.
• In the event that immigration officer discovers that the applying due date was missed in error, then your ARC owner are going to be exempted through the ban on re-entry.
• All of the needed documents must certanly be ready and, moreover, both ARC owner and manager must not have appropriate violations and unpaid fees.
• There’s no big modification set alongside the present policy.

Situation 2

An D8 visa owner sponsored by business a has additionally been working at business B, which will be within the exact same team as business A.

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

• A penalty cost will likely be imposed for both the ARC owner and company B.
• The time of breach will 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 half a year to 1 12 months) will vary from situation to instance, during the discernment of immigration officers, however it is likely that to be applied in many instances. The chance of the re-entry ban in such cases is a policy that is new.
• The D8 visa holder and their 2nd workplace need certainly to prove it was a easy blunder rather than deliberate taxation avoidance.

Instance 3

An E9 visa holder has finished just work at the visa sponsor company (company A). The E9 visa has staying credibility, plus the owner has acquired a brand new work at a unique business (company B) to exert effort before the E9 expiration date.

• Aside from visa type, working at a non-sponsoring business is unlawful as well as the Korean federal federal government will impose the stiffest laws in such cases.
• A penalty charge for both boss and worker will undoubtedly be calculated through the date the visa owner began work on business B.
• The visa holder may also get a departure purchase and will also be prohibited from re-entry to South Korea for between half a year and something year. In the event that penalty just isn’t paid, the ban shall be permanent.

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

For general information and advice on immigration and business journey to Southern Korea, please contact us.