Purchase of the 4 Major Social Insurances (Industrial Accident Compensation Insurance, National Health Insurance, Employment Insurance, and National Pension Insurance) 
Industrial Accident Compensation Insurance (Mandatory)
- Industrial accident compensation insurance applies to every business or workplace that employs workers without differentiating national workers from foreign workers, except for any of the following businesses (Article 6 of the Industrial Accident Compensation Insurance Act and Article 2 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act):
1. Projects in which accident compensation is applied pursuant to the Public Officials' Accident Compensation Act or the Military Disaster Compensation Act (however, except in cases where the provisions on net-employed survivors benefits or dangerous-service net-employed survivors benefits are applied)
2. Businesses in which accident compensation is provided pursuant to the Seafarers Act, Fishing Mariners and Fishing Boat Accident Compensation Insurance Act or Private School Teachers' Pension Act
3. Employment activities within households
4. Business run by an individual other than a corporation among agricultural, forestry (excluding logging industry), fishery, or hunting business, with less than 5 regular workers.
National Health Insurance (Mandatory)
- Foreign workers under either Non-professional Employment (E-9) or Working Visit (H-2) status who have filed for alien registration are subject to be insured under the National Health Insurance Act (Article 109 Section 2 of the National Health Insurance Act, Article 76 Section 1 of the Enforcement Decree of the National Health Insurance Act, and Article 14 of the Act on the Employment, Etc. of Foreign Workers).
- An employer of the relevant foreign worker shall report the acquisition of the eligibility of the employee insurance under the National Health Insurance Service within 14 days from the date the foreign worker’s employment has commenced (Article 8 Section 2 of the National Health Insurance Act).
Employment Insurance (Optional)
- TheEmployment Insurance Act shall be applied to every business or workplace employingworkers. However, this Act shall not apply to any of the following businesses(Article 8Section 1 of the 「Employment Insurance Act」 and Article 2 of the Enforcement Decree ofthe Employment Insurance Act).
1. An agricultural business, a forestry business, and a fishery business run by any person, other than a corporation, with not more than 4 full-time employees;
2. Construction conducted by individuals other than constructors, housing construction project operators, construction business operators, information and communications construction business operators, fire-fighting system business operators, or cultural heritage assets repair engineers ① the total construction costs of which are less than 20,000,000 won or ② which involves construction of a building with a total floor area of at least 100 square meters or substantial repair of a building which has a total floor area of not more than 200 square meters; or
3. Employment of households and other unclassified self-consumption and self-production activities.
- Foreign workers under Non-professional Employment (E-9) status or Working Visit (H-2) status acquire insured status by application. Therefore, an employer must file for an application of employment insurance for foreign nationals with the Korea Worker’s Compensation and Welfare Service if the foreign workers intend to apply for employment insurance (provision of Article 10-2 Section 1 of the Employment Insurance Act, Article 3-3 Subsection 2 Item B of the Enforcement Decree of the Employment Insurance Act, and Article 2 Section 1 of the Enforcement Rule of the Employment Insurance Act).
- An employer shall file a report on matter concerning the acquisition of insured status of a foreign worker with the head of the Regional Labor Office within 15 days of the month immediately following the month during which the employment of the foreign worker has commenced (such event concerning the acquisition of insured status occurs) (Article 15 Section 1 of the Employment Insurance Act and Article 7 Section 1 of the Enforcement Decree of the Employment Insurance Act).
National Pension (Reciprocity)
- National Pension shall apply to a foreign worker only if, under the principle of reciprocity, any relevant laws of such foreign worker’s home country apply to the citizens of the Republic of Korea with respect to a pension equivalent to the National Pension Scheme under the National Pension Act (the provisory clause of Article 126 Section 1 of the National Pension Act).
- In principle, a lump-sum refund under the National Pension Act is subject to the principle of reciprocity. However, for foreign workers under Non-professional Employment (E-9) or Working Visit (H-2) status, the provisions regarding lump-sum refund applies regardless of whether any relevant law of such foreign workers’ home country allows wages equivalent to lump-sum refund for the national workers of the Republic of Korea (Article 126 Section 4 Subsection 2 of the National Pension Act).
Insurance (Departure Guarantee Insurance/Trust and Guarantee Insurance for Overdue Wages) under the Act on the Employment, Etc. of Foreign Workers
Departure Guarantee Insurance/Trust
- Departure Guarantee Insurance/Trust means an insurance policy or a trust deed that any employer who runs a business or place of business hiring a foreign worker (under Non-professional Employment (E-9) or Working Visit (H-2) status) purchase for the foreign worker as the insured or beneficiary in preparation for the payment of retirement benefits to the foreign worker when he/she leaves the Republic of Korea. If an employer has purchased a departure guarantee insurance/trust, the employer is not required to provide a retirement allowance separately for the relevant foreign worker (Article 13 Section 2 of the Act on the Employment, etc. of Foreign Workers). However, if the amount of the lump-sum payment under the departure guarantee insurance/trust is less than the amount of the retirement allowance under the Act on the Guarantee of Workers’ Retirement Benefits, the employer must pay the foreign worker the difference between the former and the latter when the change of the foreign worker's status of stay occurs or the contract is closed(Article 21 Section 3 of the Enforcement Decree of the Act on the Employment, etc. of Foreign Workers).
- An employer who runs a business or place of business hiring 5 or more regular workers and hires a foreign worker the remaining period of whose employment is not less than 1 year must purchase such departure guarantee insurance/trust. However, if an employer who runs a business or place of business in the construction industry hires a foreign worker under Working Visit (H-2) status, such obligation to purchase the insurance policy is not applicable (Article 13 Section 1 of the Act on the Employment, etc. of Foreign Workers and Article 21 Section 1 of the Enforcement Decree of the Act on the Employment, etc. of Foreign Workers).
- If a foreign worker who has rendered a continuous service at least 1 year leaves (temporary leaving is not included) the Republic of Korea, dies or changes his/her status of stay, the accumulated amount may be claimed in a lump sum against the financial institution that deals with the departure guarantee insurance/trust. (the main body of Article 21 Section 2 Subsection 2 of the Enforcement Decree of the Act on the Employment, etc. of Foreign Workers).
- If the employment period of a foreign worker is less than 1 year, the employer is entitled to the lump-sum payment (the provisory clause of Article 21 Section 2 Subsection 2 of the Enforcement Decree of the Act on the Employment, etc. of Foreign Workers).
※ If an employer fails to purchase a departure guarantee insurance/trust, such employer is subject to a fine not exceeding 5,000,000 won (Article 30 Subsection 1 of the Act on the Employment, etc. of Foreign Workers).
Guarantee Insurance for Overdue Wages
- A guarantee insurance for overdue wages means an insurance policy that every employer must purchase in preparation for delay in payment of wages to foreign workers (under Non-professional Employment (E-9) or Working Visit (H-2) status) employed by him/her.
- A employer of ① a business or place of business not covered by the Wage Claim Guarantee Act or ② a business or place of business employing less than 300 regular workers must purchase a guarantee insurance for overdue wages. However, if an employer who runs a business or place of business in the construction industry hires a foreign worker under Working Visit (H-2) status, such obligation to purchase the insurance policy is not applicable (Article 23 Section 1 of the Act on the Employment, etc. of Foreign Workers and Article 27 Section 1 of the Enforcement Decree of the Act on the Employment, etc. of Foreign Workers).
※ Businesses or places of business not covered by the Wage Claim Guarantee Act (the provisory clause of Article 3 of the Wage Claim Guarantee Act, Article 6 of the Industrial Accident Compensation Insurance Act, and Article 2 Section 1 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act):
1. A business eligible for cover under an accident compensation scheme pursuant to the Public Officials' Accident Compensation Act or the Military Personnel's Accident Compensation Act(However, except for cases subject to the provisions of net work survivor benefits or risky job net survivors benefits);
2. A business eligible for cover under an accident compensation scheme pursuant to the Seafarers Act, the Act on Accident Compensation Insurance for Fishing Vessels and their Crew Members, or the Pension for Private School Teachers and Staff Act;
3. Employment activities within households;
4. A business run by a person other than a corporation among agricultural, forestry (excluding logging industry), fishery, or hunting business, with less than 5 regular workers;
- If an employer is in arrears with wages, the foreign worker is entitled to the right to claim the guarantee insurance money against the guarantee insurance company (Article 27 Section 2 Subsection 3 of the Enforcement Decree of the Act on the Employment, Etc. of Foreign Workers).
※ If an employer fails to purchase a guarantee insurance policy, such employer is subject to a fine not exceeding 5,000,000 won (Article 30 Subsection 2 of the Act on the Employment, Etc. of Foreign Workers).