Working in Korea as a foreigner: Must-know laws and tips

Korea Herald

21 hours ago

Foreign workers are entitled to the same rights as locals in principle, but there are exceptions and other matters to be mindful of
Traveling to a foreign country can be taxing, from adjusting to a different language and culture to navigating unfamiliar social norms. But getting a job there and working under completely different laws, regulations and workplace customs can be even more daunting.
Under Korean labor law, foreign nationals with legitimate employment contracts are, in principle, entitled to the same rights as Korean workers. However, the reality can vary significantly, depending on your field and the bosses you work for. As in all countries, some employers may exploit gaps in legal knowledge, taking advantage of foreign workers who are unfamiliar with local labor laws and protections.
Legal status of foreign workers and insurance policies
If you are a law-abiding individual with a valid work visa, your rights as a non-Korean employee are primarily governed by the Act on the Employment of Foreign Workers and the Labor Standards Act. However, note that the Labor Standards Act — which forms the foundation of labor protections in Korea — is not fully applicable to businesses with fewer than five permanent employees, as outlined in Article 10.
Foreign worker contracts should be in the form of a standard employment contract as prescribed in a ministerial decree by the Ministry of Employment and Labor. Employers can apply for a certificate of visa assurance on behalf of a foreign employee.
Like Korean employees who have worked continuously for at least a year, foreign workers are entitled to severance pay, even if they are here illegally.
Some bosses may claim that they cannot afford to pay severance, but this should not occur. Under Article 13 of the Act on the Employment of Foreign Workers, employers are required to subscribe to 'departure guarantee insurance," a system that ensures that severance pay is set aside in advance for foreign workers who have to leave the country.
Employers are required by law to enroll their employees in insurance programs as "employment-provided policyholders." Industrial accident compensation insurance is mandated for all workers, and foreigners staying in this country for at least six months -- a revision in effect since April 2024 -- must be enrolled in national health insurance.
Subscriptions to unemployment insurance and the national pension program apply differently to each worker, depending on the type of visa they hold.
At the very least, the law clearly stipulates that foreign employees in Korea are to be provided some form of social safety net.
What about illegal immigrants?
In the 2021 smash hit "Squid Game," the Pakistani character Ali Abdul had an employer who refused to pay him six months of wages and did not compensate him for injuries sustained at his workplace, taking advantage of the fact that he was an illegal immigrant. The troubles faced by the fan-favorite character sparked concerns about racial discrimination, and left many wondering what would happen to the real-life equivalents of Ali.
Ali should not have been hired in the first place, according to the Immigration Act, and his family would likely be deported by the authorities. But a 1995 ruling by the Supreme Court stated that an employment contract itself cannot be nullified just because the employee is not legally allowed to stay in Korea.
This means an illegal immigrant hired by a company, to which the Industrial Accident Compensation Act applies, should have been eligible to receive the benefits specified by the law. There are few exceptions, but most employers are required to subscribe to the insurance program run by the state.
Returning to the story of Ali, if he was planning to take his wife and baby back to Pakistan anyway, he probably should have reported his evil boss to the Ministry of Employment and Labor or a regional labor office under the ministry. Considering that his workplace was a sizeable factory, he would have been able to receive his wages and hospital fees, although his employment would likely have been terminated and his family deported.
If Ali had been working continuously for at least a year at the factory, his status as an illegal immigrant should not stop him from getting severance pay, although he would first be held accountable for crushing the wicked man's fingers.
How to report unpaid wages
Assuming that Ali kept his cool and had a Korean friend help him, he would have visited the Labor Ministry or the ministry's online petition page (https://minwon.moel.go.kr) to file a complaint. This would lead to the ministry interviewing both parties -- the worker and the employer -- and investigating the case over the course of 25 days.
The probe can be extended twice, but the petitioner must not fail to appear for a summons more than once. If that happens, the ministry will consider the petitioner unwilling to pursue the case and close it.
If the complaint is found to be valid, the ministry may order the employer to rectify the matter and pay the unpaid wages. Failure to comply can result in criminal penalties of up to three years in prison or a fine of up to 30 million won ($21,800).
The worker may also file a civil lawsuit, but must do so within two years of leaving the job.
Unpaid wages are a serious issue for foreign workers. Labor Ministry data in September last year showed that unpaid wages between January and July 2024 totaled 69.9 billion won, affecting 14,913 foreign workers across 4,124 companies.
Exceptions
In a recent workplace bullying case involving the death of former MBC weathercaster Oh Yoanna, the Ministry of Employment and Labor concluded that she had been bullied by her colleagues but that this did not legally constitute workplace harassment because she was not recognized as an "employee" under the Labor Standards Act.
This was because the deceased was legally classified as a freelancer, a status which the ministry said allowed her to sign deals with other companies and did not require her to carry out certain tasks -- such as administrative work and night shifts -- that are conventionally required by employees of the broadcaster. It also said weathercasters are not under strict supervision, and are in principle given free rein in carrying out their work.
This led to a controversy stemming from the disparity between reality and theory -- as Oh had worked under the direct supervision of an MBC employee and had been in the exclusive employment of the company -- but what it clearly shows is that there are limits to the legal protection received by those working in Korea.
As mentioned above, not every aspect of labor law applies to micro-sized businesses with fewer than five permanent employees. The Labor Standards Act does not apply to those hired for housekeeping, either.
Article 61 of the same act states that the clauses pertaining to working hours, leave and holidays do not apply to those in fields like agriculture, forestry, animal breeding, certain areas of the livestock industry, and workers engaged in surveillance or intermittent jobs approved by the Labor Ministry.
Article 3 of the Act on the Employment of Foreign Workers also states that it does not apply to "any seafarer who works on a ship governed by the Seafarers' Act but who does not have the nationality of the Republic of Korea, or to any owner of a ship who employs or intends to employ such seafarer."
As the exact legal applications related to foreign workers are too numerous to cover in a single article, one is advised to search the English translations provided on the website Statutes of the Republic of Korea (https://elaw.klri.re.kr), operated by the Korea Legislation Research Institute, a state-run think tank. Those who can read Korean should also consult the Korean Law Information Center.