It can. A foreign national who has worked for at least 1 year at an overseas local subsidiary or overseas branch set up by a listed company (including KOSDAQ-listed companies) or a public institution, and who is dispatched to its headquarters or head office in Korea to provide or receive professional knowledge, technology or skills, falls under the Intra-Company Transferee (D-7) status. For a listed company, however, the overseas entity must be one in which headquarters invested, or to which it paid operating funds of, at least half a million US dollars.
This guide is for HR and international business staff at Korean companies with overseas subsidiaries or branches, and for foreign employees of those entities who are about to work at the Korean headquarters. Most people think of D-7 only as a foreign company sending staff to its Korean branch, but the reverse direction, an overseas-expanded Korean company bringing staff to its headquarters, has its own rules.
Key Summary
- Who: a foreign employee with at least 1 year at an overseas subsidiary or branch of a listed company, KOSDAQ-listed company or public institution, dispatched to the Korean headquarters or head office
- Headquarters must be a listed company, KOSDAQ-listed company or public institution
- Overseas entity of a listed company: a local subsidiary in which headquarters invested at least half a million US dollars, or a branch to which it paid operating funds of that amount or more
- If headquarters is a public institution, the investment amount requirement does not apply
- Overseas offices that only perform non-business functions such as liaison, market research or R&D are excluded
- The applicant should in principle be at manager or senior researcher level or above and be dispatched to headquarters for a fixed period
- The maximum D-7 stay granted at one time is 3 years
1. Does D-7 apply when a Korean company, not a foreign one, brings staff in?
D-7 has two tracks. One covers a person with at least 1 year at the headquarters or branch of a foreign public institution, organization or company who is dispatched as essential personnel to its affiliate, subsidiary or branch in Korea. The other, covered here, is the headquarters assignment of foreign staff working at overseas entities of Korean companies.
| Item | Foreign company's Korean branch | Korean company's headquarters |
|---|---|---|
| Direction | Foreign headquarters or branch → affiliate, subsidiary, branch or office in Korea | Overseas subsidiary or branch of a Korean company → Korean headquarters or head office |
| Sending side | Foreign public institution, organization or company | Overseas entity set up by a listed company (including KOSDAQ) or public institution |
| Work history | At least 1 year | At least 1 year at the overseas entity |
| Activity | Works as essential personnel | Provides or receives professional knowledge, technology or skills |
A typical case: a KOSDAQ-listed manufacturer wants to send a local production engineer who has worked several years at its Vietnamese subsidiary to the process development team at the Korean headquarters for a set period. Whether the case actually fits depends on meeting all of the headquarters, overseas entity and applicant requirements below.
2. What must headquarters and the overseas entity look like?
Headquarters must be a listed company, a KOSDAQ-listed company or a public institution. Listing status is checked with the Korea Exchange. If headquarters is unlisted, it does not meet this track's headquarters requirement, and whether another status is available needs to be checked case by case.
When headquarters is a listed or KOSDAQ-listed company, overseas entities are divided into local subsidiaries and overseas branches:
- Local subsidiary: a company in which headquarters made an overseas direct investment
- Overseas branch: a branch set up by headquarters, other than by incorporation, to carry on business abroad, in principle on an independent accounting basis
- Excluded: overseas offices that do no business and perform only non-business functions such as liaison, market research or research and development
The overseas entity must also reach a certain size:
| Overseas entity | Size test |
|---|---|
| Local subsidiary | Headquarters invested half a million US dollars or more |
| Overseas branch | Headquarters paid operating funds (setup costs, running costs, working capital, etc.) of half a million US dollars or more |
| Headquarters is a public institution | Investment amount requirement does not apply |
Put the other way, overseas subsidiaries or branches of a listed company in which headquarters' investment or operating funds are below half a million US dollars are excluded from this track.
3. Which employees can be sent?
The visa applicant must meet all of the following:
- has worked at the overseas entity for at least 1 year
- has professional knowledge, technology or skills
- in principle, is at manager or senior researcher level or above
- will work at headquarters as a professional, and has at least 1 year of experience as a professional at the overseas entity
- is dispatched to headquarters for a fixed period
Even with more than a year at the overseas entity, the requirement is hard to meet if that time was not spent in professional work. And because a fixed-period dispatch is required, a structure in which the person is simply transferred onto the headquarters payroll should be re-examined.
4. Which documents are filed for the visa issuance certificate?
When the Korean headquarters applies for a visa issuance certificate, the documents are:
- Application for a visa issuance certificate, copy of passport, standard photo
- Statement of reasons for the invitation
- Proof of essential personnel status (résumé, career certificate, etc.)
- Headquarters' certificate of registered matters
- Acceptance of the overseas direct investment report or of the overseas branch establishment report
- Proof of the overseas remittance
- Corporate registry certificate or business registration of the overseas entity
- Headquarters' tax payment certificate
- Personnel (dispatch) order, which must state the dispatch period
The overseas direct investment or branch establishment acceptance and the remittance proof are the key evidence for the half-million-dollar size test. The immigration office may add or remove attachments to check the genuineness of the invitation and the qualifications of the inviter and the invitee.
5. Can the employee apply directly at a Korean consulate?
For people under this headquarters assignment track, a Korean mission abroad can issue a single or multiple-entry visa of 1 year or less. The documents are the visa application, copy of passport and photo, proof of essential personnel status, headquarters' certificate of registered matters (may be omitted if headquarters is a public enterprise), the overseas direct investment or branch establishment acceptance, proof of the overseas remittance, the overseas entity's corporate registry certificate or business registration, and the employee's certificate of employment and tax payment certificate from the overseas entity.
Whether to use a visa issuance certificate or apply directly at the mission depends on the dispatch period, timing and the mission's circumstances, so it is worth deciding early.
6. Common problems
- Applying under this track because the company belongs to a listed group, although headquarters itself is unlisted
- The overseas base is a liaison, market research or R&D office that does no business, so it is not recognized as an overseas entity
- Headquarters' overseas investment or operating funds fall short of half a million US dollars
- The dispatch order does not state the dispatch period
- Much of the year at the overseas entity was not spent in professional work
7. How A-One Certified Administrative Agent can help
We check the headquarters, overseas entity and applicant requirements one by one, show how to explain the overseas entity's size with the overseas direct investment documents and remittance records, and review the dispatch order wording and the visa issuance certificate documents. The immigration office decides each case, so no result can be promised, and we do not handle litigation or court representation (outside the scope of an administrative scrivener).
Frequently Asked Questions
Can staff from an unlisted mid-sized company's overseas subsidiary use this track?
This track requires headquarters to be a listed company, KOSDAQ-listed company or public institution. An unlisted company does not meet the headquarters requirement, so other statuses need to be checked case by case.
How is the size of the overseas entity measured?
For a local subsidiary, whether headquarters invested half a million US dollars or more; for an overseas branch, whether headquarters paid operating funds (setup costs, running costs, working capital, etc.) of that amount or more. If headquarters is a public institution, the investment amount requirement does not apply.
Does an employee of an overseas liaison office qualify?
Overseas offices that perform only non-business functions such as liaison, market research or research and development are excluded from overseas entities.
Can a junior-level employee be sent?
In principle the applicant should be at manager or senior researcher level or above. For a lower grade, how professional knowledge and professional work history can be shown needs to be checked case by case.
How long can a D-7 stay be granted at one time?
The maximum stay period that can be granted at one time is 3 years.
Related Guides
- D-7 Intra-Company Transferee Visa Guide
- D-7 visa detailed requirements
- D-7 for transfers between sister companies
- Essential personnel: executives, senior managers and specialists
Consultation
에이원 행정사사무소 (A-One Certified Administrative Agent) is an administrative office that supports document preparation and filing with the authorities. Fees vary by case and are explained during a consultation. Phone 02-309-3107 · Contact: https://investkorea.co.kr/en/contact