[Korean Law Insights] Legal Considerations After Acquiring U.S. Citizenship

[Published on June 6, 2023 edition of the "Korean Law Insights" column in the Korea Daily’s Economic Expert Section]

• Loss of Korean Nationality Upon Acquiring U.S. Citizenship

• Important Considerations Regarding Korean Passport, Real Estate, and Employment

Korean nationals who stay in Korea for an extended period and then visit the U.S. to maintain their permanent residency often face difficulties due to strict entry inspections. To avoid such situations or for various other reasons, many consider acquiring U.S. citizenship as a better option. Understanding the legal implications and important considerations of acquiring citizenship in advance can help prevent complications and enable timely resolution or response to potential issues.

Since South Korea adheres to the principle of single nationality, individuals are generally not allowed to hold dual citizenship. When a Korean national acquires a foreign nationality, they automatically lose their Korean nationality by law. In other words, if a Korean permanent resident obtains U.S. citizenship, their Korean nationality is immediately lost on that same day.

The issue is that the loss of South Korean nationality is a legal matter. If a report on the loss of South Korean nationality is not submitted, administrative records may still show the person's South Korean nationality as if it remains valid. For example, after acquiring U.S. citizenship through naturalization, if one requests a family relationship certificate or other official documents, the resident registration number may still be active, and there may be no indication that South Korean nationality has been lost. In some cases, individuals may even continue to enter and exit South Korea using a South Korean passport. Due to these administrative traces, some Korean expatriates mistakenly believe their South Korean nationality remains valid, which can lead to complications.

In particular, those who acquire U.S. citizenship after the age of 65 may believe they are dual nationals. However, as previously mentioned, South Korea, in principle, does not recognize dual nationality. Only in exceptional cases, where certain conditions are met (e.g., being over 65), does South Korea allow the restoration of previously lost nationality through the nationality reinstatement process. More precisely, undergoing the South Korean nationality reinstatement process allows an individual to be recognized as a South Korean national within South Korea. Conversely, within South Korea, they cannot claim foreign nationality. As a result, individuals who have regained South Korean nationality must use a South Korean passport when entering or leaving the country.

On the other hand, a U.S. citizen who has not gone through the South Korean nationality reinstatement process must enter and exit South Korea using a U.S. passport. This is because a South Korean passport is issued and used based on South Korean nationality. Therefore, unless a U.S. citizen reinstates their South Korean nationality, they must not use their South Korean passport—even if it is still valid. If they use it to enter or exit South Korea, each instance of travel could be considered passport fraud, leading to criminal penalties. Based on my experience, such legal violations are eventually discovered and can cause significant issues. The best course of action is to avoid using a South Korean passport after acquiring U.S. citizenship. However, if someone has already used it, resolving the legal violation as soon as possible is crucial.

In addition to the use of a South Korean passport, there are important considerations regarding real estate in South Korea. If a South Korean national owns property in South Korea and later acquires U.S. citizenship, they must file a Real Estate Retention Report within six months of acquiring U.S. citizenship. Failure to do so may result in a fine of up to 1 million KRW. Additionally, those employed in South Korea who receive a salary must be cautious if they later acquire U.S. citizenship. It is important to respond promptly, considering factors such as the nature of employment and the method of salary payment. Failure to comply may result in legal consequences.

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Jin Hee Lee/K-Law Consulting Korean Attorney

[Reference link in original Korean] 

https://news.koreadaily.com/2023/06/06/economy/economygeneral/20230606211113462.html