Trump Slaps $100,000 Annual Fee on Professional Visas

Emphasis on "Measures to Protect American Citizens"
Big Tech Companies Face Sharp Increase in Burden

US President Donald Trump signed an executive order on the 19th (local time) to significantly overhaul the H-1B visa system for professional foreign workers. The key provision is to raise the visa application fee to $100,000 per year (approximately 140 million KRW). This is dozens of times higher than the previous application fee.

US President Donald Trump signed an executive order on the 19th (local time) to significantly overhaul the H-1B visa system for professional foreign workers. Photo by UPI Yonhap News

The White House explained that this measure aims to restrict the influx of low-wage foreign labor and expand employment opportunities for American citizens. In fact, the US government has determined that abuse of the H-1B visa has led to wage stagnation and created barriers to entry for domestic science and technology professionals, categorizing this as an issue of national security and economic stability.

Direct Hit to the IT Industry... Companies Face Challenges in Securing Talent

This decision is expected to deliver a significant blow to the US information technology (IT) industry, especially large tech companies that have relied on foreign talent. Companies such as Amazon, Microsoft, and Meta (formerly Facebook) have hired thousands of specialized professionals, such as software engineers, each year through the H-1B visa program.

For example, Amazon alone received approval for more than 10,000 visas this year, while Microsoft and Meta are each reported to have secured over 5,000 visas. Immediately after the announcement, the stock prices of companies in related sectors saw a decline.

With the visa fee increased to $100,000 per year, companies will inevitably face a sharp rise in the financial burden of hiring foreign workers. The fee must be paid not only at the initial application but also annually for each extension.

Emphasis on "Prioritizing American Hires"

Howard Lutnick, US Secretary of Commerce, who attended the executive order signing ceremony, stated, "Companies will have to evaluate whether it is worth paying $100,000 every year for a visa applicant. If the candidate does not meet this standard, they will return to their home country, and companies will hire talent from within the United States."

President Trump also remarked, "Now, companies will have no other choice but to give opportunities only to the talent they truly need," adding, "The United States will only accept those who benefit the country."

The government also plans to review overall wage standards to ensure that even when hiring foreign workers, companies are required to pay salaries above the US average.

The H-1B visa is issued to approximately 85,000 people annually, with more than 70% going to Indian nationals and over 10% to Chinese nationals. Therefore, this measure is expected to have a direct impact, especially on highly skilled Asian professionals.