Three Japanese Nationals Among Detainees
B-1/B-2 Rejection Rate for Korea at 14.97%
H-1B Visa Becoming Increasingly Difficult to Obtain
Concerns have been raised that the issue of detaining employees from Hyundai Motor Company and LG Energy Solution could spread to Japanese companies unless the problem with visas, which are a legal means of entry into the United States, is resolved.
The Nihon Keizai Shimbun (Nikkei) reported on the 12th that "this incident could potentially affect Japanese companies as well." The Japan Times, an English-language newspaper in Japan, reported that among the 475 people detained, three are Japanese nationals, and they belong to a Japanese industrial machinery company that manufactures battery electrode coating equipment.
Nikkei pointed out that the shortage of construction workers in the United States is severe, citing the example of the semiconductor plant that Taiwan's TSMC is building in Arizona, which has faced setbacks due to a lack of skilled labor.
The report criticized the fact that while the United States is encouraging large-scale investments from foreign companies under the banner of reviving its manufacturing sector, entry into the United States has actually become more difficult. In fact, President Trump, immediately after taking office in January, ordered stricter visa screening and a crackdown on illegal stays, raising the threshold for entry.
Nikkei analyzed that the complex U.S. visa system, which Chairman Chung Euisun of Hyundai Motor Group described as "complicated," is the background of this incident. There are more than 20 types of "non-immigrant visas" in the United States, and over 80 subcategories. Among these, temporary stay visas include the H-1B visa for professionals, the B-1 visa for short-term business purposes, and the L-1 visa for intracompany transferees.
The problem is that the threshold for visa issuance is rising every year. According to the U.S. State Department, the B-1 and B-2 visa rejection rates for fiscal year 2024 were 5.76% for Japan and 14.97% for Korea, showing a gap of more than double. In particular, obtaining an H-1B visa is becoming increasingly difficult. From October 2022 to September 2023, a total of 399,395 H-1B visas were issued, of which 255,250, or 63.9%, went to IT industry workers.
Nikkei pointed out that "the median annual salary for H-1B recipients has reached 120,000 dollars (about 176 million won), making it increasingly difficult to obtain unless one is a highly paid professional."
Meanwhile, CNN reported that this incident has prompted moves in the U.S. Congress to institutionalize solutions to the visa issues faced by skilled Korean workers. In July, Representative Young Kim, a Republican from California, introduced the "Partner with Korea Act," proposing to allocate 15,000 E-4 visas annually to skilled Korean workers. However, the bill is currently pending in the House Judiciary Committee.
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