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Essential Insurance Guide for Foreign Workers in Korea

Dongsoo Lee2025-08-15

The Return Cost Insurance / Trust helps foreign workers cover expenses when returning home after their contract ends.It also aims to prevent illegal stays after the visa period expires.

Who must join and when

  • Visa types: E-9 (Non-professional Employment) and H-2 (Working Visit)

  • Enrollment deadline: Within 3 months from the effective date of your labor contract

  • Effective date depends on your visa status:

    • E-9: Date of first entry into Korea

    • H-2: First day of work

    • Workplace change: Start date of the new labor contract

    • Re-employment: Day after previous employment period ends

    • Re-entry special case: Day after being handed over to the new employer

Payment amount

Category

Nationality

Amount

Group 1

China, Philippines, Indonesia, Thailand, Vietnam

400,000 KRW

Group 2

Mongolia

500,000 KRW

Group 3

Sri Lanka

600,000 KRW

Others

All other countries

500,000 KRW

When you can claim the payment

  • Returning home after visa expiration

  • Returning home before visa expiration for personal reasons

  • Voluntary departure or deportation after leaving the workplace

Important notes

  • You must claim within 3 years after the qualifying event

  • Failure to join may result in a fine of up to 5 million KRW

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Accident Insurance is designed to cover illness or death not caused by work-related accidents.

Who must join and when

  • Visa types: E-9, H-2

  • Enrollment deadline: Within 15 days from the effective date of your labor contract

When you can claim the payment

  • Death due to illness or injury

  • Permanent disability due to illness or injury

Note: Hospital treatment costs for minor injuries are not covered.If the incident is work-related, it is covered by Industrial Accident Compensation Insurance, not Accident Insurance.

Important notes

  • Failure to join may result in a fine of up to 5 million KRW

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In addition to the insurances that foreign workers must join, there are insurances that the employer is required to provide:

  1. Departure Guarantee Insurance

    • Helps employers manage the lump-sum payment of retirement allowances when workers leave.

  2. Wage Payment Guarantee Insurance

    • Protects against unpaid wages.

Failure to enroll in these will also result in a fine of up to 5 million KRW for the employer.

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For questions or detailed information about foreign worker insurance:

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If you are a foreign worker in Korea, make sure to join the required insurance within the legal time frame to avoid penalties.

Remember:

  • Return Cost Insurance and Accident InsuranceYou must join

  • Departure Guarantee Insurance and Wage Payment Guarantee InsuranceYour employer must join