H-1B FY2027 Weighted Lottery Inaugural and New Strategies for Korean American Applicants
On March 19, 2026, electronic registration for H-1B visas for FY2027 closed. This year's registration period, which began at noon on March 4 and lasted 16 days, is more than just the end of an administrative process - it's the first year in history that the wage-based Weighted Selection Process, which went into effect on February 27, will be applied. U.S. Citizenship and Immigration Services (USCIS) will notify applicants of their lottery results via their online accounts by March 31. These results will be the first test of the new system's effectiveness in practice and a milestone in the direction of H-1B visas going forward. With the final rule published in the Federal Register on December 29, 2025, and a tight timeline of just two months until the effective date, employers and applicants alike are having to adjust to the new system. Let's take a look at what this new system, which gives more opportunities to higher-paying applicants, means for Korean-American applicants, the ramifications of the $100,000 surcharge fee that is being implemented this year, and what alternatives they have if they are not selected.
Same draw, different odds
“Aristotle said that fairness is not giving everyone the same thing, but giving each person what they need.”
The structure of the weighted lottery is simple. The weighting of the lottery depends on the level of the prevailing wage, which is set by the U.S. Department of Labor for each occupation and region. The highest wage band, Level IV, is weighted 4x, Level III is weighted 3x, Level II is weighted 2x, and the lowest wage band, Level I, is weighted 1x. Higher weights mean that a candidate's name is drawn multiple times in the lottery pool, so their odds are significantly different even if they're in the same lottery. For example, if one Level IV applicant and one Level I applicant enter the lottery, the Level IV's name is entered on four slips of paper, while the Level I's name is entered on one slip. It's a simple analogy, but when this structure is applied to a lottery of tens of thousands of people, the gap becomes a statistically significant difference.
According to an analysis by the Penn Wharton Budget Model at the University of Pennsylvania, the probability of selection for Level IV applicants under the new system is estimated to be about 61 percent. That's higher than the odds of flipping a coin and getting heads. Level III is about 46 percent, Level II is about 31 percent, and Level I is only about 15 percent. That's a 13-percentage-point drop from the previous randomized lottery system, where Level I applicants accounted for about 27 percent of all selections. At the other end of the spectrum, Level IV is up 10.5 percentage points, from about 15.5 percent to about 26 percent. The Department of Homeland Security (DHS) estimates that the rule will increase the average compensation of H-1B recipients by nearly $10,000, to about $120,000 ($121,863 to be exact). The administration's logic behind the rule is to “protect American workers” - the premise that higher-paying foreign professionals complement, not replace, American jobs. You can find out which level you fall into on the Department of Labor's Foreign Labor Application Gateway site, as the salary for each wage level varies by occupation and location.
Another barrier: the $100,000 fee
“The height of the threshold does not necessarily reflect the value of what lies within it.”
Another key variable in this year's H-1B season is the $100,000 surcharge fee. Introduced by Presidential Proclamation in September 2025, this fee is in addition to the existing $215 registration fee and is charged at the time of actual filing of the H-1B petition after being selected in the lottery. However, this fee does not apply to all H-1B petitions, but rather to certain new petitions as defined by the Presidential Proclamation and USCIS guidance, so its applicability must be evaluated on a case-by-case basis. For small and medium-sized businesses, this could mean paying the government more than $100,000 on top of existing fees to hire a single foreign employee, effectively opening the door to H-1Bs only to large, well-funded companies.
Even before the $100,000 fee, the total cost to employers per H-1B (including attorneys' fees, traditional government fees, and premium processing) was already in the thousands of dollars. With the addition of the $100,000 fee, it is not uncommon for the total cost to exceed $105,000. It's also worth noting the change in H-1B filings. Last year, in FY2026, the number of qualifying registrations was 343,981, a 26.9 percent decrease from the previous year, FY2025 (470,342). The number of unique beneficiaries also dropped significantly, to about 336,000. A significant portion of the FY2026 enrollment decline is attributed to the impact of USCIS's crackdown on duplicate enrollments and the beneficiary-centered enrollment system. On the other hand, the $100,000 surcharge fee introduced in September 2025 is having a more direct impact on employers' sponsorship strategies and petition adjudication in the following season, FY2027.
In December 2025, a federal district court in Washington, D.C., upheld the legality of the fee, but the U.S. Chamber of Commerce and the Association of American Universities have appealed to the U.S. Court of Appeals for the D.C. Circuit and requested an expedited hearing. The California and Washington state attorneys general have also filed separate lawsuits, arguing that the fee is illegal because it was imposed without congressional authorization. It's worth noting that the Supreme Court recently issued a ruling that put the brakes on the executive branch's authority to impose sweeping tariffs, and the chambers argue that the ruling's jurisprudence could apply to the $100,000 fee. Meanwhile, on March 17, a bipartisan bill was introduced in the House of Representatives (the H-1Bs for Physicians and the Healthcare Workforce Act) that would exempt healthcare workers from the fee, demonstrating the tension between the reality of the healthcare workforce shortage and the policy of tightening H-1B regulations.
The double-edged impact on Korean-American applicants
“The same wind propels some boats and stops others. The direction depends on the sails.”
The weighted lottery will not have a uniform impact on Korean American H-1B applicants. It is actually a favorable change for Korean-Americans who earn high salaries in Silicon Valley's tech giants or New York's Wall Street financial institutions. This is because their chances of being selected in a Level III or IV will increase meaningfully over the current randomized system.
On the other hand, young Korean-Americans fresh out of graduate school, entry-level software engineers, entry-level accountants, and young Korean-Americans employed by small and medium-sized trading firms are more likely to be at Level I or II. Starting salaries at small accounting firms, trading firms, and small tech companies in New York and New Jersey, where there is a high concentration of Korean-American students, are often in the Level I range. To put this into perspective, Department of Labor data shows that the median Level I wage for an accountant in the New York metro area is around $60,000 per year, and Level I software developers in the same area are in the $70,000 range. Compared to starting at Level III or higher for the same job in a large company, that's a two- to three-fold difference in weighting. For them, the 15 percent selection rate is almost half of the roughly 30 percent under the old system, and the impact is significant. The long-term impact of this change on the Korean American community's settlement patterns in the U.S. cannot be ignored, especially given that many Korean American students continue to stay in the U.S. through H-1B sponsorship at their first job after graduation.
Academia is no exception. While universities and nonprofit research organizations have traditionally been exempt from the H-1B annual cap, allowing them to hire without a lottery, new restrictions are emerging at the state level. On March 3, the Florida Board of Governors voted to halt new H-1B hiring at state universities by January 2027, becoming the second state after Texas to do so. The move was requested by Governor Ron DeSantis, who said that “Florida citizens should be prioritized for employment opportunities.” Korean-American professors, researchers, and medical residents are directly affected, and faculty member Kimberly Dunn warns that “even a one-year suspension will have long-lasting repercussions.” If this action spreads to other states, it will further narrow the pathways for Korean-Americans in academia.
Alternative paths if you're not selected
“Where one path ends, another begins.”
If you are not selected in the H-1B lottery, there are alternative pathways to stay and work in the United States. The EB-2 National Interest Waiver (NIW), which allows you to petition for permanent residency on your own without an employer sponsor, is increasingly popular among Korean Americans as a long-term solution that doesn't rely on H-1Bs. If you have a master's degree or higher and can demonstrate achievement in your field, you are a strong candidate. O-1 visas are available without a lottery if you can demonstrate extraordinary ability in the sciences, arts, education, or business. You'll need evidence of awards, publications, and industry recognition, but it's valuable because it bypasses the uncertainty of the lottery. There is also a path called the L-1 visa. This involves working for a company headquartered in South Korea for at least a year and then transferring to a U.S. company, and is available to large companies like Samsung, LG, Hyundai, and SK, as well as smaller trading companies and IT service companies with parent companies in South Korea.
If you are an international student, there is a way to utilize Optional Practical Training (OPT). In addition to the 12 months of regular OPT, you can work in the U.S. for an additional 24 months if you are a STEM major, for a total of up to 36 months, and try again in the lottery the following year. However, during this time, it is important to ensure that your employer is willing to sponsor your H-1B for the following year. The E-2 investment visa is also an open pathway for South Korean nationals. South Korea has a Treaty of Commerce and Navigation with the United States and is therefore eligible to apply for an E-2 visa. If you invest a substantial amount of money in a business and substantially operate it in the United States, you will be eligible for status, which can be renewed indefinitely. In recent years, E-2 visas have also been obtained through the purchase of a franchise or the acquisition of an existing business. Most importantly, these alternatives should not be explored after the H-1B results are in, but rather in parallel during the registration process. It is recommended that you consult with an immigration lawyer to determine which path is best suited to your education, experience, and line of work.
Closing remarks
The results of the lottery, which will be released on March 31, will be the first data to reveal the actual selection rates and wage distribution of the weighted lottery system. While weighting higher wages signals the administration's intent to prioritize people with experience and expertise, it also comes with the reality that not all professions start their careers with high wages. Just as doctors don't become specialists until they go through residency, engineers don't become senior until they gain experience in entry-level positions. For a Level I today to grow into a Level IV five years from now, they need to be given that first chance. The weighted lottery system narrows that first door of opportunity, which could have long-term implications for the diversity of the U.S. professional labor market. The answer to the question of how narrow that door of opportunity will be will be outlined in the lottery results that will soon be revealed. Whatever the outcome, exploring multiple possibilities simultaneously rather than looking at just one path is the most realistic preparation for uncertain times.
Disclaimer: This column is for general information purposes only and is not legal advice for your specific case. You should always consult with an attorney who specializes in immigration law for your individual case.
Law Offices of Jin Dong Cho
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