Trade Visa (E-1)/Investor Visa (E-2)

For both the trade visa (E-1)/investor visa (E-2), a change to an E visa is possible if the applicant is staying in lawful nonimmigrant status, but a person residing outside the United States cannot apply for an E visa using Form I-129.

The following requirements apply in common to the trade visa (E-1)/investor visa (E-2).

1. Treaty country national: must be a Korean national (a U.S. permanent resident does not qualify)
2. Business ownership: a Korean individual or Korean corporation must own at least 50% of the shares
3. Essential management or supervisory capacity: the applicant must be able to operate the U.S. business or manage the trade contracts
4. Business substance: it must be a business that is actually operating, and a shell company is not recognized
5. Economic contribution to the United States: merely supporting one's family is not recognized; job creation and a positive economic effect on the local community are required

• Establishing a corporation in the United States is not mandatory (it can be based at an overseas headquarters)
• Trade activity must be ongoing
• No restriction on traded items (including raw materials, machinery, IT, intellectual property, software, and the like)
• Key employees may be dispatched in addition to the applicant
• No limit on the number of trade visa extensions granted (the intent to depart must be maintained)

For a trade visa, ‘Substantial Trade’ refers to both volume and frequency.

Numerous transactions must exist, and there is no minimum requirement for the monetary value or scale of the transactions. (In practice, the trade volume tends to be USD 100,000 or more.)

Accordingly, a one-off trade contract is not recognized, and to prove a regular and continuous trade record, several years of invoices, bills of lading, trade contracts, and records of payments received are required.

A trade visa covers not only goods but also intellectual property rights, licenses, franchises, and technical services.

• Import and export of electronic components
• IT technology license agreements
• Dispatching technical personnel from a Korean head office to provide services to U.S. client companies

There is no legal minimum for the investment amount required to obtain an investment visa, but an investment of generally USD 100,000 to 300,000 or more is recommended.

If you intend to enter the United States solely for the purpose of developing and operating the invested enterprise, it is advisable to hold at least 50% of the equity in the business or to demonstrate that you hold other operational control.

An investment visa permits an initial stay of up to 2 years, and applications to change status are approved in increments of up to 2 years.

There is no particular limit on the number of extensions a nonimmigrant who has obtained an investment visa may receive.

For an investment visa, the core of a ‘Substantial Investment’ is that the business is actually in operation and that capital above a certain scale has been invested.

1) Use of the investment : The funds must have been used for purposes such as leasing facilities, purchasing equipment, and obtaining permits and licenses, in a state where they are already invested and irrevocable.

A simple deposit is not recognized, and passive investments such as a simple leasing business or real estate investment are also not recognized.

2) Lawful source : The source of the funds must be lawful and traceable.

3) Continuous generation of income : The business must not merely cover the living expenses of the investor’s family, but must be able to create jobs and generate continuous income.

Here, factors such as employing a substantial number of local U.S. staff, an increase in annual revenue, and a ripple effect on the local economy may be considered. If possible, it is favorable to have already hired U.S. employees.

At the interview at the U.S. Embassy in Korea, the officer may ask in detail about the business plan, trade record, and investment details.

In some cases, the embassy does not immediately approve the investment visa or other visa and decides to deny it.

Preparation is also needed in case the visa is denied for various reasons, such as additional verification, appearing to have immigrant intent, or suspected unlawful employment.

In such a case, asking the embassy about the reason for the denial and then again obtaining the assistance of a specialist such as an immigration attorney can help with reapplication.

• Insufficient business plan → USCIS and the embassy require a specific and credible plan
• Errors in interpreting trade contracts → Expertise in international trade is required
• Inadequate investment structure design → The form of incorporation and the equity structure design must conform to local law
• Reapplication after a denial → Additional supporting materials must be prepared according to the reason for denial, and the procedure carried out

The trade visa and investment visa are key nonimmigrant visas through which Korean companies and investors can enter the U.S. market quickly and flexibly.

However, because there are many demanding conditions and practical requirements, such as trade volume, investment funds, and maintenance of performance, a strategic approach by specialists often makes a significant difference.

Our firm has foreign attorneys licensed in the United States who provide U.S. legal advice on staff, and attorneys experienced in each field who also hold U.S. accounting qualifications, forming a task force to respond quickly for clients seeking a trade visa or investment visa.

In addition, through an MOU with a U.S. real estate platform, the firm can provide consulting for a company’s entry into the United States, including real estate sales and rental services.

Legal consultation requests can be received 24 hours a day, 365 days a year, and a video consultation system is in place, so regardless of time or place, please leave a consultation reservation and we will respond promptly.