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Foreign employment & nationality

Four Mandatory Insurance Policies for Foreign Workers — Departure Guarantee, Wage Guarantee and Accident Insurance in 15 Days, Return Cost Insurance in 3 Months

An employer who hires E-9 (Non-professional Employment) or H-2 (Working Visit) foreign workers under the Employment Permit System must enroll in departure guarantee insurance and wage arrears guarantee insurance, and the foreign worker must enroll in return cost insurance and accident insurance (Act on the Employment, etc. of Foreign Workers, Articles 13, 15 and 23). Departure guarantee, wage guarantee and accident insurance must be purchased within 15 days from the effective date of the employment contract, and return cost insurance within 3 months (Enforcement Decree of the same Act, Articles 21, 22, 27 and 28). Failing to enroll in the two employer policies or accident insurance is punishable by a fine of up to 5,000,000 won (same Act, Article 30).

Written by Hwang Yunsang, Administrative Agent · Published 2026-10-25 · Updated 2026-10-25

Procedure

We will fill out the application documents for E-9 workplace change and E-7 immigration status/workplace change. Depending on your actual residency status and employment institution, we will classify the application route and whether or not a visit is included.

Scope & fee
Prepare E-9 workplace-change documents
We will prepare the relevant documents by reviewing the reason for the change in workplace, job search registration, and provided employment data for 1 E-9 worker. It does not include the worker's own job center application, job search activities, or job placement. It does not include in-office submissions.
Immigration workplace change or addition: prior permit
We compare the requirements for a change/additional permit for 1 worker's workplace with the provided employment data and prepare the permit application documents. A separate long explanation and employment center procedures are not included. It does not include in-office submissions.
E-7-4 status change: 1 worker and 1 company
We will prepare application materials by comparing the E-7-4 conversion requirements for 1 worker and 1 company with scores, income, and employment proof. We distinguish between the actual application route and the scope of identity verification and verification. It does not include in-office submissions.
Official fee source ↗
E-7-1 change of immigration status: prepare documents
We will review the E-7-1 change requirements and proof of job/employment for 1 worker and 1 company and prepare a job description, reason for employment, and application documents. It does not include embassy visas and separate employment center work. Scope of writing: 1 type of job description, 3 pages per type, 1 type of employment reason, 3 pages per type. It does not include in-office submissions.
Official fee source ↗
E-7-1 change of immigration status: includes 1 in-person filing in the Seoul metropolitan area
We will review the E-7-1 change requirements and proof of job/employment for 1 worker and 1 company and prepare a job description, reason for employment, and application documents. It does not include embassy visas and separate employment center work. Scope of writing: 1 type of job description, 3 pages per type, 1 type of employment reason, 3 pages per type. 1 office visit is included.
Official fee source ↗

  1. 1. Check whether your workplace must enroll

    Departure guarantee insurance applies to employers at workplaces covered by the Employee Retirement Benefit Security Act who hire a foreign worker with at least 1 year of employment period remaining (Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 21(1)). Wage arrears guarantee insurance applies to workplaces not covered by the Wage Claim Guarantee Act or that regularly employ fewer than 300 workers (same Decree, Article 27(1)). Construction workplaces under the special employment scheme (same Act, Article 12(1)1) are excluded from both (same Decree, proviso to Article 21(1) and proviso to Article 27(1)).

  2. 2. Employer insurance within 15 days of the contract's effective date

    The employer must enroll in departure guarantee insurance and wage arrears guarantee insurance within 15 days from the effective date of the employment contract (Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Articles 21(2) and 27(2)). Departure guarantee insurance accumulates, separately from wages, a monthly amount announced by the Minister of Employment and Labor, and the wage guarantee insurance must guarantee at least the announced amount. Enrolling in departure guarantee insurance is deemed to establish a severance pay system (same Act, Article 13(2)).

  3. 3. Worker's own accident insurance and return cost insurance

    Foreign workers at every workplace that employs foreign workers must enroll in accident insurance within 15 days from the effective date of the employment contract (Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 28). Return cost insurance must be purchased within 3 months from the effective date of the contract, paying the amount announced for each country in a lump sum or in up to 3 installments (same Decree, Article 22(1) and (3)).

  4. 4. Monthly payments, arrears and the farm and fishery pledge

    Departure guarantee insurance premiums must be paid every month (Act on the Employment, etc. of Foreign Workers, Article 13(1)), and falling behind 3 or more times makes the employer subject to an administrative fine (same Act, Article 32(1)5). The fine is 800,000 won for a first violation, 1,600,000 won for a second and 3,200,000 won for a third or later (Enforcement Decree of the same Act, Attached Table). Farm and fishery workplaces not covered by industrial accident compensation insurance submit a pledge to enroll in farmers' and fishers' safety insurance when applying for an employment permit (same Decree, Article 13-4, Subparagraph 6).

  5. 5. Claims and settling the difference on resignation or departure

    Departure guarantee insurance benefits are paid within 14 days after the worker leaves Korea (or within 14 days from the application date if the claim is made because of a change of status of stay, death or similar reason, or after departure) (Act on the Employment, etc. of Foreign Workers, Article 13(3)). If the lump sum is less than the severance pay, the employer must pay the difference (Enforcement Decree of the same Act, Article 21(3)). When the employment contract is terminated, the employer must file an employment change report within 15 days of the event (Enforcement Rule of the same Act, Article 14).

Required documents

  • No submission form (the four policies are insurance contracts that the employer and worker conclude directly with the insurer; there is no separate enrollment application to a government agency)
  • Standard employment contract (Enforcement Rule of the Act on the Employment, etc. of Foreign Workers, Form No. 6; Form No. 6-2 for agriculture, livestock and fisheries) - to confirm the contract's effective date
  • Copy of the foreign worker employment permit (Enforcement Rule of the Act on the Employment, etc. of Foreign Workers, Form No. 5)
  • Copy of the foreign worker's alien registration card or passport
  • Copy of the business registration certificate and records showing the number of regular employees (to determine whether wage guarantee insurance applies)
  • Pledge to enroll in farmers' and fishers' safety insurance (Enforcement Rule of the Act on the Employment, etc. of Foreign Workers, Form No. 4-2; farm and fishery workplaces not covered by industrial accident compensation insurance)
  • Departure guarantee insurance premium payment records (to confirm monthly payments)
  • Foreign worker employment change report (Enforcement Rule of the Act on the Employment, etc. of Foreign Workers, Form No. 12; when the employment contract is terminated)

Fees

Administrative service fee
  • Prepare E-9 workplace-change documents from KRW 400,000
  • Immigration workplace change or addition: prior permit from KRW 400,000
  • E-7-4 status change: 1 worker and 1 company from KRW 600,000
  • E-7-1 change of immigration status: prepare documents from KRW 600,000
  • E-7-1 change of immigration status: includes 1 in-person filing in the Seoul metropolitan area from KRW 800,000
All administrative service fees exclude 10% VAT.

Premiums are paid directly to the insurer according to the amounts announced by the Minister of Employment and Labor, and whether a local government subsidizes premiums, and at what rate, must be checked with each local government. Our office fee starts from the amount shown above and may vary depending on the number of foreign workers, the timing of employment and the types of reports involved; we will give you an exact quote after reviewing your documents.

See fees and official charges for this service →

Legal basis and review date

  • Act on the Employment, etc. of Foreign Workers, Article 12
  • Act on the Employment, etc. of Foreign Workers, Article 13
  • Act on the Employment, etc. of Foreign Workers, Article 15
  • Act on the Employment, etc. of Foreign Workers, Article 23
  • Act on the Employment, etc. of Foreign Workers, Article 30
  • Act on the Employment, etc. of Foreign Workers, Article 32
  • Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 13-4
  • Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 21
  • Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 22
  • Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 27
  • Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 28
  • Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Attached Table
  • Enforcement Rule of the Act on the Employment, etc. of Foreign Workers, Article 5
  • Enforcement Rule of the Act on the Employment, etc. of Foreign Workers, Article 8
  • Enforcement Rule of the Act on the Employment, etc. of Foreign Workers, Article 14

Checked against the statutes on

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

  • The deadline for departure guarantee, wage guarantee and accident insurance runs 15 days from the effective date of the employment contract, not from the date the employment permit is issued (Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Articles 21, 27 and 28), so schedule enrollment as soon as the arrival and start dates are set.
  • Enrollment in departure guarantee and wage guarantee insurance is also a requirement for issuing a new employment permit (Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 13-4, Subparagraph 7), so missing enrollment or arrears may affect further hiring procedures.

Frequently asked questions

By when must an employer buy departure guarantee insurance for a foreign worker?
Within 15 days from the effective date of the employment contract. It applies to employers at workplaces covered by the Employee Retirement Benefit Security Act who hire a foreign worker with at least 1 year of employment period remaining (Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 21). Failure to enroll is punishable by a fine of up to 5,000,000 won (same Act, Article 30, Subparagraph 1).
Who receives the departure guarantee insurance if the worker quits before 1 year?
If the period of service is less than 1 year, the lump sum belongs to the employer. The lump sum can be claimed by a worker who has worked continuously for 1 year or more and leaves Korea, dies, or changes status of stay (Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 21(2)2).
If the departure guarantee benefit is less than severance pay, does the employer have to pay more?
Yes, the employer must pay the difference to the foreign worker. When the employment ends or the status of stay changes and the lump sum is less than the severance pay under the Employee Retirement Benefit Security Act, the employer pays the difference (Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 21(3)). The employer and the worker may ask the insurer to confirm the lump sum amount (same Article, Paragraph 4).
When is departure guarantee insurance paid and how long can it be claimed?
It is paid within 14 days after departure, and the claim expires if not exercised for 3 years from the date the payment event occurs. If the claim is made because of a change of status of stay, death or similar reason, or after departure, it is paid within 14 days from the application date (Act on the Employment, etc. of Foreign Workers, Article 13(3) and (4)). The same limitation period applies to return cost insurance (same Act, Article 15(3)).
What happens if a foreign worker does not buy return cost insurance?
The foreign worker is subject to an administrative fine. Return cost insurance must be purchased within 3 months from the effective date of the employment contract (Enforcement Decree of the Act on the Employment, etc. of Foreign Workers, Article 22), and the fine depends on how long the worker was not enrolled: 800,000 won for 180 days or less, 1,600,000 won for up to 360 days, 2,400,000 won for up to 540 days and 3,200,000 won for more than 540 days (same Act, Article 32(1)6; Enforcement Decree of the same Act, Attached Table).
Do local governments subsidize insurance premiums for E-8 (Seasonal Work) or farm and fishery foreign workers?
Whether support is available, and at what rate, must be checked with each local government. Premium support is not a common standard set by statute but is run under local ordinances and programs, so please ask the city, county or district where the workplace is located about eligibility and application periods.
Can I ask an administrative agent to handle the mandatory insurance for foreign workers?
Yes, you can entrust us with checking enrollment obligations and deadlines and preparing the related reports. The employer and the foreign worker enroll directly with the insurer, and Hwang Yunsang Administrative Office checks whether each workplace must enroll and by when, and prepares documents such as the standard employment contract, the farmers' and fishers' safety insurance pledge and the employment change report.

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Hwang Yunsang Administrative Office in Songdo, Incheon prepares and submits administrative documents and explains the procedure. If your situation is similar, send us a message.

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📍 2697, 26F POSCO Tower-Songdo, 165 Convensia-daero, Yeonsu-gu, Incheon, Republic of Korea · 📞 010-3374-2687 · 🌐 hwangadmin.com

This guide is general information based on public sources. Requirements, documents and deadlines differ by case and by the competent agency, so please confirm them before you proceed.