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Insurance in Korea

EMPLOYMENT PERMIT SYSTEM

Four mandatory insurance policies for foreign workers

Understand which two policies the employer arranges, which two the worker arranges, and what to verify before leaving the explanation.

This is general statutory guidance, not an insurance sale or a decision about your individual eligibility. EPS, the responsible authority, and the insurer must confirm your current case.

Summary

Foreign workers covered by Korea’s Employment Permit System have four dedicated insurance policies. The employer must arrange Departure Guarantee Insurance and Wage Payment Guarantee Insurance. The worker must arrange Return Cost Insurance and Accident Insurance.12

Who should check these rules?

  • E-9 (Non-professional Employment): the main visa category entering through the Employment Permit System.
  • H-2 (Work and Visit): special employment-permit rules may apply.
  • E-10 and other work visas: do not assume all four EPS policies apply. Seafarers covered by the Seafarers Act and several other visa categories are treated differently under the Act.2

The four EPS insurance policies

PolicyWho enrols?Main purposeOfficial timing or amount currently confirmed
Departure Guarantee InsuranceEmployerFunds similar to statutory severance payWithin 15 days after the employment contract takes effect; at least 8.3% of ordinary monthly wages is accumulated monthly1
Wage Payment Guarantee InsuranceEmployerUnpaid-wage protection at covered workplacesWithin 15 days; guarantee limit KRW 4 million per worker1
Return Cost InsuranceWorkerCost of returning homeWithin 3 months; KRW 400,000, 500,000, or 600,000 depending on nationality group1
Accident InsuranceWorkerNon-work-related death or disabilityWithin 15 days; up to KRW 30 million for accidental death/disability and KRW 15 million for death/severe disability caused by illness1

1. Departure Guarantee Insurance

The employer pays into this policy for an eligible foreign worker. It is connected to severance-pay protection, but you should not assume the insurance payment always equals the full statutory severance amount.

Ask:

  • Has the employer enrolled me and made every monthly payment?
  • Have I worked at least one year, and what event allows me to claim?
  • If the insurance payment is lower than statutory severance pay, who pays the difference?
  • What must I do before leaving Korea or changing status?

2. Wage Payment Guarantee Insurance

This policy responds when an eligible employer fails to pay wages. The official EPS guide states a guarantee limit of KRW 4 million per worker. A worker generally needs official confirmation of unpaid wages before claiming.1

Ask whether your workplace is covered, whether the employer enrolled you, and which Labour Office document is needed.

3. Return Cost Insurance

The worker pays this amount to prepare for the cost of returning home. The required amount depends on a nationality group. Do not confuse it with an airline ticket benefit: the payment and claim event follow the statutory rules and policy procedure.

4. Accident Insurance

This is separate from Industrial Accident Compensation Insurance. EPS Accident Insurance is designed for specified non-work-related death or disability; an injury or illness caused by work should be checked under workers’ compensation rules.13

What to verify before you finish

  • Which two policies the employer must arrange and which two the worker must arrange.
  • Whether you received proof of enrolment for all applicable policies.
  • Whether premiums or contributions are up to date.
  • What event allows a claim, what documents are required, and where to file it.
  • The difference between work-related injury coverage and EPS Accident Insurance.

Official help and sources

Footnotes

  1. Human Resources Development Service of Korea, Employment Permit System, “EPS Insurances,” checked 2026-07-15: https://eps.hrdkorea.or.kr/e9/user/intro/intro.do?method=epsInsurances ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  2. Act on the Employment, Etc. of Foreign Workers and Enforcement Decree, Korean Law Information Center: https://www.law.go.kr/법령/외국인근로자의고용등에관한법률 ↩ ↩2

  3. Industrial Accident Compensation Insurance Act, Korean Law Information Center: https://www.law.go.kr/법령/산업재해보상보험법 ↩