Korean law guarantees severance pay for workers with one year or more of service. This applies to foreign workers too.

✅ Eligibility

Any employee with 1+ year continuous service — including foreign workers on any work visa.

💰 Calculation

30 days' average wage × years of service. Average wage = total wages in last 3 months ÷ calendar days.

⏱️ Payment

Must pay within 14 days of last day. Failure: up to 3 years prison or 30M KRW fine.

📊 Pension Types

🌍 Foreign Workers

• Mandatory regardless of nationality
• Lump sum if leaving Korea permanently
• E-9: Departure Guarantee Insurance
• Tax withholding applies

⚖️ If Employer Refuses

• Regional Labor Office complaint
• 1350 (Korean) or 1345 (multilingual)

Source: KOTRA Business in Korea 2025