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SOUTH KOREA: Stricter Policy for Illegal Keep

17, 2019 december

The Korean National Assembly is debating tougher penalties for the companies of unlawful residents. For those of you voluntarily reporting residence that is illegal 28 February 2020, penalties is 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 stays of not as much as one to KRW 20,000,000 for illegal stays of three years or more month.

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

Voluntary Reporting for Illegal Residents

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

• The penalty cost shall be exempted.
• A “Certificate of Voluntary Departure” will soon be given, letting them reapply for a 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. When they then leave the united states within 3 months, and without committing any unlawful tasks, they could be eligible for numerous entries and an extended timeframe of stay the very next time they submit an application for a visa.
• They will be permitted to submit an application for TOPIK (Test of Proficiency in Korean). When they obtain degree 2 or above, they’ll be permitted to make an application for an E9 visa (for workers from particular countries just).

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

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

• The penalty charge will be imposed plus the violation duration will likely to be determined 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 cost in complete would be forever forbidden from entering South Korea.

Voluntary Reporting for Companies

Production industry

• The reporting that is voluntary will operate between 11 December 2019 and 31 March 2020.
• For employers whom report in those times, the penalty cost may be exempted and their illegally-resident workers is likely to be permitted to remain for three more months from the reporting date.

Agriculture and fishing industry

• The voluntary reporting system will run between 11 December 2019 and 15 January 2020.
• The penalty fee will be exempted and their illegally-resident employees will have legal opportunities for seasonal work for employers who report within this period. a visa that is new for regular employees (E8) is under conversation during the Ministry of Justice.

Small and medium-sized organizations under the Employment Permit System (EPS)

• The reporting that is voluntary will operate between 11 December 2019 and 31 March 2020.
• For companies whom report through this period, 30% for the penalty charge will be imposed. But, if they’re caught by government research with out reported, 100% associated with the cost are going to be imposed and they’re going to be banned from employing foreign nationals for at least 36 months. The penalty charge will be determined by immigration officers on the basis of the duration of the time of breach.
• For unlawful residents reported by their employers in this duration, 30% of this penalty fee is likely to be imposed, and they’ll be permitted to just work at the sponsoring business until their E9 visa expires. Them to find another job if they prefer to work elsewhere, the Ministry of Employment and Labor will help. Nonetheless, if they’re caught by government research with no reported, 100% of this penalty cost is supposed to be imposed plus a forced departure purchase.

Case Studies

Case 1

A D8 visa holder sponsored by company A, unintentionally missed the expansion due date because of their Alien Registration Card (ARC).

• A penalty charge shall be imposed. The time of breach are going to be determined through the day following the ARC expiration date.
• In the event that immigration officer finds that the application form deadline ended up being missed in error, then your ARC owner will soon be exempted through the ban on re-entry.
• Most of the needed documents must certanly be ready and, more importantly, both ARC owner and manager should not have legal violations and taxes that are unpaid.
• There is absolutely no big modification set alongside the current policy.

Situation 2

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

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

• A penalty cost will likely to be imposed for both the ARC owner and company B.
• The time of violation shall be determined through the date the visa owner received payments from company B, that exist via their withholding tax certificates.
• The re-entry ban (for 6 months to at least one 12 months) will change from situation to case, during the discernment of immigration officers, however it is most most likely that to be used more often than not. The likelihood of the re-entry ban in such cases is really a brand new policy.
• The D8 visa holder and their 2nd workplace need certainly to show it was an easy blunder and never deliberate taxation avoidance.

Instance 3

An E9 visa holder has finished just work at the visa sponsor business (company A). The E9 visa has remaining credibility, together with holder has obtained an innovative new task at an unusual business (company B) be effective until the E9 expiration date.

• No matter visa type, working at a non-sponsoring business is unlawful together with Korean government will impose the stiffest laws in such cases.
• A penalty charge for both employee and employer are going to be determined through the date the visa holder began just work at business B.
• The visa owner may also be given a departure purchase and you will be banned from re-entry to Southern Korea for between 6 months and something year. In the event that penalty just isn’t paid, the ban will be permanent.

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

For basic information and advice on immigration and company journey to South Korea, please contact us.