Korea's social insurance system provides essential protections for foreign workers. This guide covers the four key insurance programs: National Pension, Health Insurance, Employment (Unemployment) Insurance, and Industrial Accident Compensation Insurance.
🏦 National Pension
The National Pension Plan is a social security system that collects income-related premiums and provides benefits for people exposed to social risks causing income loss.
Social Security Agreements
Korea has signed social security agreements with multiple countries, providing the following benefits:
- Elimination of Dual Coverage — Workers abroad pay contributions to only one country's pension scheme
- Totalization of Coverage — Periods in both countries can be combined to meet eligibility requirements
- Equal Treatment — Nationals of one country are treated equally in the other country's system
- Overseas Remittance — Benefits are paid without restriction regardless of where you reside
Learn more: nps.or.kr
🏥 Health Insurance
| Item | Details |
|---|---|
| Enrollment | Optional, but once insured, cannot cancel while employed |
| Auto-cancellation | If leaving Korea for 1+ month, automatically cancelled via Immigration notification |
| Premium rate | Average monthly income × 7.09% (employer and employee split 50/50) |
Coverage includes: illness treatment, injury prevention/diagnosis, rehabilitation, birth, death, and medical check-ups (every 2 years; yearly for laborers).
📋 Employment (Unemployment) Insurance
Employment insurance encourages stable employment and provides income support to those who lose their jobs.
Who must apply?
Employers with at least one employee (since October 1, 1998). Exempt: family-owned agriculture/forestry/fishery businesses with 4 or fewer employees, small construction companies, and household service businesses.
Eligible foreign workers
Short-term employees, professors, foreign industry trainees, foreign workers with residence status, and others eligible for employment in Korea.
Unemployment Grant
| Item | Details |
|---|---|
| Calculation | 60% of average daily earnings |
| Maximum | 66,000 KRW/day |
| Minimum | 80% of minimum wage × 8 hours |
| Duration | 120–270 days (based on age and insured period) |
📌 How to claim
Visit an Employment Support Center with your ID immediately upon becoming unemployed. Submit an employment seeker application and revenue/expenditure qualification form. Visit the center weekly to report reemployment efforts. The grant expires after 12 months.
🔧 Industrial Accident Compensation Insurance
A statutory insurance guaranteeing income for injured workers and their families. Employers with at least one employee must apply (since July 1, 2000).
Coverage includes industrial diseases, work-related exhaustion and stress. Foreign workers under contract with a Korean employer are covered equally. Even undocumented workers are eligible to apply.
How to apply for compensation
- Submit application to the Korea Workers' Compensation & Welfare Service
- Include: applicant details, eyewitness account, employer's confirmation letter, doctor's opinion
- Investigation and verification process
- Decision on classification as industrial accident victim
- In case of death, family may apply for compensation and funeral costs