There are four major insurances: Industrial Accident Compensation Insurance, Employment Insurance, National Health Insurance, and the National Pension Plan. (i) Industrial Accident Compensation Insurance applies to foreigners as well, but the remaining social insurances vary in application. (ii) Regarding Employment Insurance, most foreign workers stay in Korea temporarily, so it is often optional. (iii) National Health Insurance is naturally applicable if a foreign worker is employed at a workplace. (iv) National Pension is naturally applied in principle, but the principle of reciprocity means it varies in accordance with relations with each foreign country.

1. Industrial Accident Compensation Insurance (IACI)

Since the IACI Act stipulates in Article 1 (Purpose) that its purpose is to compensate workers for work-related accidents promptly, foreign workers must be protected. Regardless of their eligibility for working visas, all are covered by the IACI Act. If a foreigner is injured while providing work, whether he or she is an industrial trainee or an illegal foreign worker, the accident will be compensated for as an industrial accident. This has been confirmed by a Supreme Court case. Supreme Court ruling Sep. 15, 1995: 94 noo 12067 (Withdrawal of decision on disapproval of medical treatment)
Workers are subject to workers' compensation in the event of a work injury, regardless of whether they are Korean citizens or illegal workers. The Supreme Court has made it clear that illegal stays are subject to crackdowns, but that illegal residents should also be covered by industrial accident insurance in the sense that workers must be protected by labor law for labor already provided.
The IACI Act is a social insurance system in which the State carries out compensation on behalf of the employer under the Labor Standards Act if a worker is injured or ill from work. Accident compensation is applied to all businesses or workplaces using workers, taking into account the risk, size and place of business. The following types of work are not covered by the IACI Act (Article 6): ① construction with a total construction cost of less than 20 million won, ② construction by a non-housing business or non-contractor, construction of buildings with a total floor area of ??less than 100 square meters (200 square meters for waterline construction), ③ household service ④ businesses with fewer than five workers in agriculture, forestry, fishing and hunting. Enforcement Decree to the IACI Act, Article 2 (Exclusion of Application of Law), Paragraph 6.
Therefore, in the event a business or workplace is not covered by the IACI Act and has an industrial accident requiring medical treatment for three days or less, the Labor Standards Act requires the employer to compensate for the work injury/illness. Korea Labor Welfare Corporation, Handbook of Workers' Compensation and Employment Insurance in 2023 and Employment, pp. 7-8.

2. Employment Insurance Act (EIA)

Employment insurance grants benefits to eligible people to prevent undue hardship from unemployment, promote employment, develop the vocational skills of workers, and promote job-seeking activities. It thereby contributes to the economic and social development of the nation (Article 1 of the EIA). Employment insurance applies to all businesses or workplaces in principle, with exceptions in consideration of the size of business. It applies to all workers because its main purpose is to provide stability for unemployed persons, so does not apply if those persons do not need help or are protected by other insurance. Those excluded from employment insurance are: ① 65 years of age or older, ② Those working fewer than 60 hours a month (15 hours a week), ③ Civil servants under the National Civil Service and Local Public Service Act, ④ Those to whom the Private School Teachers Pension Act applies, ⑤ Sailors under the Seafarers Act, ⑥ Foreign workers who are not eligible for residency. However, foreigners with status of residence may subscribe and benefit.
Unemployment benefits of course include unemployment benefits, but also maternity leave allowances and childcare leave benefits. Therefore, foreigners cannot receive maternity leave benefits and childcare leave benefits as well as unemployment benefits if they do not have employment insurance. If a foreign worker who is staying for employment in Korea does not intend to receive unemployment benefits, he or she may not subscribe.

3. National Health Insurance (NHIA)

All business and local subscribers covered by National Health Insurance are required to pay premiums. However, foreign workers (E-9) and visiting Korean workers (H-2) under the employment permit system in the Foreign Employment Act and in Article 7 (4) of the Long-Term Care Insurance Act can be exempted through a separate application process through a nursing care insurance subscriber. All other foreign workers who do not have a basis for exemption are automatically subscribed to long-term care insurance and pay the premium along with the health insurance premium.

4. National Pension (NPA)

Foreigners working in workplaces are subject to the National Pension Act (Article 126) and foreign nationals residing in Korea shall, of course, become business or regional subscribers. However, if the law equivalent to Korea's NPA in the foreigner's country of citizenship does not apply to Republic of Korea nationals living there, the national pension system in Korea corresponding to the national pension shall be taken as the principle of a reciprocity with foreign countries Those not covered by the National Pension Scheme are those here on temporary stay visas or without income. Excluded foreigners: (1) Those who have stayed without permission to extend their stay in accordance with Article 25 of the Immigration Control Act; (2) A person who has not registered as an alien under Article 31 of the Immigration Control Act or who has been issued an order of forced eviction under Article 59 (2) of the same Act; (3) Status of residence (D-1), Study abroad (D-2), Technical training (D-3), General training (D-4), Religion (D-6), Visiting living (F- 1) Person with companion (F-3) and others (G-1).

National Pension applies to foreign nationals when they are employed at a workplace that must subscribe to it. To receive the pension benefit, the foreign national must have paid into the national pension for at least 10 years and reach the age of 60. This is not easy for most foreign workers to do. In this case, a lump-sum refund will be given, which will be handled in accordance with the social security agreement Korea has with that national's country of citizenship. In addition, the National Pension Act was amended in January 2015 in accordance with the decision of the Constitutional Court in recognition of the property value of national pensions (Article 126 of the NPA). Constitutional Court of Korea decision Jun. 29, 2000: 99 Hunba 289; Constitutional Court of Korea decision on May 28, 2009: 2005 Hunba 20


5. Opinion

The four main insurances for foreign workers are granted natural benefits. With Industrial Accident Compensation Insurance, there is insufficient compensation to workers injured/ill from industrial accidents at workplaces hiring fewer than five workers in rural areas. If Employment Insurance is voluntary and foreign workers become unemployed or find another job, most will be excluded from maternity leave or parental leave. Illegal residents are excluded from National Health Insurance coverage. Paying into the National Pension Scheme is mandatory for non-professional foreign workers (E-9), even though it is impossible, under the short-term visa system, for them to stay long enough to be eligible for the benefits. which is another burden that the employer should pay as the employer's burden in premiums. So, the National Pension should be excluded from the mandatory social insurances.