Yes. When an overseas subsidiary (A) and a Korean subsidiary (B) share the same parent company (C), A and B are treated as affiliates of each other, and a person transferring directly from A to B without going through headquarters can also be issued an Intra-Company Transferee (D-7) visa. The person must still be essential personnel, and as a rule must have worked at the overseas company for at least 1 year.
This guide is for HR and legal staff at the Korean entity of a multinational group, and for employees moving from an overseas affiliate to a Korean affiliate. So that you can check before restructuring an assignment on the belief that D-7 only works when the parent's headquarters dispatches the employee, we start with what counts as an affiliate and which documents are needed.
Key Summary
- An overseas subsidiary (A) and a Korean subsidiary (B) under the same parent (C) are affiliates; a direct transfer from A to B can qualify for a D-7 visa
- A and B are also affiliates when the members of an overseas company (C) each hold more than 50% of the total shares or total capital contribution of both A and B
- Basic requirement: at least 1 year of work at the overseas company + dispatch to the Korean affiliate as essential personnel
- The 1-year work rule does not apply to people working in national key industries or national projects, or to essential personnel dispatched to a Korean branch of a foreign company whose operating funds brought in reach half a million US dollars or more
- Anyone who qualifies for Corporate Investment (D-8) falls under D-8, not D-7
- The maximum stay period granted at one time for D-7 is 3 years
1. Can the employee come from an overseas subsidiary rather than headquarters?
The basic D-7 applicant is a person who has worked for at least 1 year at the headquarters, branch or other office of a foreign public institution, organization or company, and who is dispatched as essential personnel to its affiliate, subsidiary, branch or office in Korea. "Affiliate" here follows the scope set by the Minister of Justice.
The first case in that scope is the sister-company relationship. If an overseas subsidiary (A) and a Korean subsidiary (B) have the same parent (C), A and B are affiliates of each other, and a person who transfers from A to B without going through headquarters can still receive a D-7 visa. For example, a manager at the Singapore entity of a European group moving to the group's Korean entity may also fall under a transfer that does not go through headquarters; whether it is recognized in a specific case needs to be confirmed with immigration.
2. What exactly counts as an affiliate?
There are two cases.
| Type | Structure | Affiliate? |
|---|---|---|
| Common parent | Parent (C) has subsidiary A overseas and another subsidiary B in Korea | A and B are affiliates of each other |
| Common members | The members of an overseas company (C) each hold more than 50% of the total shares, or contribute more than 50% of the total capital, of both A and B | A and B are affiliates of each other |
The second type covers cases where no parent holds the shares directly, but the same members (shareholders) control more than half of each company. The rule says "more than", so an exact half is unlikely to fit this type. If the structure is complex, prepare corporate registry certificates and shareholder registers that show the relationship clearly.
3. When is the 1-year work rule waived?
The rule is at least 1 year of work at the overseas company. It does not apply in the following cases:
- people who will work in national key industries or national projects
- essential personnel dispatched to a Korean branch of a foreign company whose operating funds brought in reach half a million US dollars or more
Anyone who qualifies for Corporate Investment (D-8) is excluded from D-7. An executive who holds an investment stake in the Korean affiliate should check the D-8 requirements first.
4. Who counts as essential personnel?
The dispatched person must be essential personnel, which has three categories:
- Executive: directs the management of the organization at the first level, exercises wide decision-making authority, and receives only general direction from the board or shareholders
- Senior manager: responsible for setting and carrying out the goals and policies of the company or a department, with authority to hire and dismiss staff or to recommend it
- Specialist: has highly specialized, proprietary experience and knowledge essential to the research, design, technology or management of the company's services
An ordinary staff member who is not essential personnel will find it hard to meet this requirement, and whether someone qualifies depends on the actual duties and needs to be confirmed with immigration case by case.
5. Which documents are filed for the visa issuance certificate?
For intra-company activity at a Korean branch of a foreign company, the visa issuance certificate application includes:
- Application for a visa issuance certificate, passport, standard photo
- Statement of reasons for the invitation
- Proof of essential personnel status (résumé, career certificate, etc.)
- Certificate of employment at the overseas company
- Dispatch order
- Proof of the Korean branch (copy of the branch or liaison office establishment permit or report acceptance)
- Proof that the branch or liaison office operates normally (operating funds or liaison office running funds brought in; for a new office, an operating plan and tax payment record, etc.)
The list above is the standard for intra-company transferee activity at a Korean branch of a foreign company, so for a transfer to a Korean affiliate (subsidiary), which of these documents apply as they are and how to submit materials showing that A and B are affiliates needs to be confirmed with immigration case by case. The immigration office may add or remove attachments to check the genuineness of the invitation.
6. After arrival, is a new permit needed to move to another affiliate?
For holders of D-7 through D-9 moving within the same affiliate group, the office collects the required documents and processes an alien registration change report. The documents include the application, passport and alien registration card, the original dispatch order (issued by the foreign headquarters), proof of the same affiliate group (corporate registry certificate, etc.), and for the added or new workplace, proof of operating funds brought in, the original corporate registry certificate and a copy of the business registration.
7. Common problems
- Moving the employee to headquarters on paper and dispatching again, just because they belong to an overseas subsidiary
- A common-members structure where the holding in one of the two companies does not exceed 50%
- The dispatched person is ordinary staff rather than an executive, senior manager or specialist
- Missing branch or liaison office establishment documents or proof of operation for the Korean affiliate
- An executive with an investment stake applying for D-7 without checking the D-8 requirements
8. How A-One Certified Administrative Agent can help
We review whether the group's ownership structure falls within the affiliate scope and check the essential personnel evidence 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
Does D-7 work if the employee never worked at the parent's headquarters?
If the person worked at least 1 year at an overseas subsidiary of the same parent and is dispatched to the Korean affiliate as essential personnel, a transfer that does not go through headquarters can still qualify for a D-7 visa.
What if the same shareholders own both companies instead of a parent?
If the members of an overseas company (C) each hold more than 50% of the total shares or total capital contribution of both companies, the two are treated as affiliates.
Is it impossible with less than 1 year of overseas work?
The rule is at least 1 year, but it does not apply to people in national key industries or national projects, or to essential personnel dispatched to a Korean branch of a foreign company whose operating funds brought in reach half a million US dollars or more.
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.
What happens if the employee moves to another affiliate after arriving?
A move within the same affiliate group is handled as an alien registration change report, with the original dispatch order, proof of the affiliate relationship and other documents.
Related Guides
- D-7 Intra-Company Transferee Visa Guide
- D-7 visa detailed requirements
- D-8 essential personnel: executives, senior managers and specialists
- When a D-8 investor changes or adds a workplace
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