[Expert Column] The Dispatch Era Has Come to an End
- Ji Min Yoo
- 4 days ago
- 3 min read
Written by Stella H. Kim, SPHR
Published September 19, 2025
– Korean Organizations in the U.S. Now Stand at a Crossroads
[HRCap 2025 Localization Playbook Series]
① HR Strategies for Korean Companies in the U.S.
Closing Regulatory Gaps through a Two-Track Leadership Model
The recent enforcement action in Georgia has been a stark wake-up call for Korean companies operating in the United States.
Employees dispatched on short-term visas were detained and deported, clearly signaling that long-standing workforce practices are no longer acceptable. This was not a one-off compliance failure by a single company, but a systemic breakdown driven by regulatory gaps and escalating political pressure.
While headquarters-based technical talent remains critical for establishing U.S. operations, the current visa framework does not adequately support these operational demands. The H-1B visa is constrained by annual quotas and lengthy processing timelines that delay deployment. The E-2 visa is investment-oriented and ill-suited for short-term engineers. The ESTA and B-1 visas prohibit employment altogether, exposing companies to significant compliance risks.
In the absence of viable alternatives, many firms have taken these risks out of operational necessity, but the recent Georgia case clearly shows that this model is no longer sustainable. Korean companies can no longer depend on dispatch-driven approaches to operate or scale their U.S. businesses.
So then, which HR strategies can enable Korean companies to build sustainable success in the U.S. market? The answer is a robust localization strategy anchored in hiring local talent within local subsidiaries.
The United States remains the world’s largest consumer market, and sustainable growth requires moving beyond export-driven approaches. Intensifying regulations around immigration, labor, and employment also means violations now carry steeper legal and financial consequences. Korean companies must therefore build comprehensive HR strategies that integrate U.S. labor law, visa compliance, compensation design, employee benefits, and cultural norms. Short-term dispatches no longer ensure survival, and delaying localization amplifies risk.
Historically, many Korean companies have prioritized language proficiency and headquarters communication when hiring talent. However, an organization’s success now strongly depends on investing in talent with professional expertise and market competitiveness.
HRCap, a Global Total HR Solutions Partner, manages a competitive pool of over 9,700 Korean-American C-Suite and executive leaders across the United States. These executives bring an integrated understanding of headquarters’ strategies while also overseeing organizational culture, workforce management, and business compliance. They can translate corporate vision and values while simultaneously designing U.S.-based regulatory, labor, and organizational systems, making them increasingly indispensable during the early stages of U.S. entry and expansion.
At the same time, companies must boldly elevate non-Korean U.S. local leaders into front-line executive roles. These transformative leaders help bring deep market and customer insights, enhance brand recognition, expand sales and partnership networks, and strengthen local employee trust and engagement.
Therefore, the optimal solution is a two-track leadership model: Korean executives maintain strong alignment with headquarters and design localized strategies, while U.S. local leaders drive market expansion, cultural integration, and brand building. Together, they operate as a dual engine powering sustainable organizational growth.
To survive and compete long term, Korean companies must now make five fundamental shifts:
Transition from headquarters-dispatch models to localization-based operating systems.
Build a two-track leadership framework to build synergies between Korean executives and U.S. local leaders.
Prioritize professional expertise and market competitiveness over language skills in hiring and culture-building.
Strategically secure and develop both Korean-American and U.S. local talent pipelines
Establish mid to long-term HR strategies that integrate visa, labor, and regulatory risk management.
By anchoring these five pillars, Korean companies can transcend today’s uncertainty and unlock a new era of growth and leadership in the United States.
Stella H. Kim, SPHR
HRCap – SVP, Head of Americas & Chief Marketing Officer