Foreign Employment and Visa

Chapter 3. MANAGEMENT OF LABOR AFFAIRS FROM FOREIGNER EMPLOYMENT TO RETIREMENT

Foreign Workers and the Employment Permit System

There are two main types of foreign workers employed in South Korea. The first type is the Employment Permit System (E-9 visa), which allows foreign workers to be employed in 3D industries such as manufacturing, construction, and agriculture. The second type is for professionals in specialty fields (E-1 to E-7 visas) such as university professors, native language instructors, researchers, and experts in certain fields. These professionals not only supplement the domestic workforce but also provide specialized knowledge and skills necessary for the industry. The Employment Permit System was introduced to ensure a stable supply of labor in the 3D industries facing a shortage of domestic labor while protecting the domestic employment market.
The Employment Permit System applies to certain industries and companies. First, small and medium-sized manufacturing companies with fewer than 300 permanent employees or less than 8 billion won in capital can hire foreign workers under the system. The number of foreign workers allowed varies depending on the size of the company, ranging from 10% to 20% of the domestic workforce.
Second, most construction companies can hire foreign workers under the Employment Permit System. The number of foreign workers allowed is calculated based on the annual construction budget. Companies with an average budget of less than 1.5 billion won can hire up to five foreign workers, while those with a budget of more than 1.5 billion won can hire 0.4 foreign workers per 10 million won of the budget.
Third, service companies can hire foreign workers of Korean descent under the special employment permit system. Companies with fewer than five employees can hire up to two foreign workers, even if there are no domestic workers. Companies with six or more employees can hire up to 30-40% of their domestic workforce as foreign workers of Korean descent.
Fourth, small and medium-sized agricultural companies with fewer than ten employees can hire up to five foreign workers even if there are no domestic workers. Larger companies can hire up to 20% of their domestic workforce as foreign workers. In the fishing industry, companies operating ships under 20 tons and fish farms are eligible to hire foreign workers, up to 40% of the domestic crew per ship.

■ General Employment Permit System
Firstly, employers who wish to hire foreign workers must first submit a domestic recruitment application to the Employment Center of the Ministry of Employment and Labor. If the employer fails to fill the position with suitable domestic candidates despite their efforts to recruit (the recruitment period is 3-7 days), the Employment Center will issue an employment permit for the foreign worker. The employer will receive a list of recommended foreign job seekers from the Employment Center, which is three times the number of positions needed. The employer selects a suitable candidate from the list of recommended foreign job seekers, and the employment permit is issued for that specific foreign worker. Before issuing the employment permit, during the screening stage, the application company’s employment status, whether they have made sufficient efforts to recruit domestic workers, and whether there has been any delayed payment of wages within the past five months are verified.
Secondly, employers must create a "Standard Employment Contract" when hiring foreign workers. This is to prevent disputes related to working conditions between the parties and to protect foreign workers who are in a vulnerable position under labor law. The "Standard Employment Contract" must include the duration of the employment contract, the place of work, job responsibilities, working hours, break time and holidays, and payment details. The employment contract period can be determined within a range of three years from the foreign worker's entry date, and if the employer has received permission for re-employment from the Ministry of Employment and Labor, an additional two years can be added. The effective date of the employment contract is the foreign worker's entry date. Therefore, the employment relationship is maintained from the entry date, and the entry date is used as the benchmark for calculating retirement pay, among other things.
Thirdly, foreign workers who enter on a non-professional employment (E-9) visa must apply for foreign registration at the immigration office with jurisdiction over their residence (address) within 90 days of their entry date. In addition, foreign workers who enter the country must receive job training from a designated educational institution within 15 days. During the job training period, the educational institution will conduct a health diagnosis to check for infectious diseases required by law. Employers and foreign workers must be enrolled in compulsory insurance. Employers must enroll in overseas departure insurance for retirement pay guarantees and guarantee insurance to prevent wage defaults. Foreign workers must be obligated to enroll in repatriation cost insurance and accident insurance for return airfare.

■ Special Employment Permit System
First, the Special Employment Permit System is a system that allows foreign ethnic Koreans who have already entered Korea to be employed in fields such as manufacturing, construction, and services. Those who enter with a visitation employment (H-2) visa can complete job training and apply for employment through job search, and if hired, can be employed.
Second, those who are eligible for a visitation employment (H-2) visa include ①foreign ethnic Koreans over the age of 25 who reside in China and the former Soviet Union and were Korean nationals at the time of birth, listed on the Korean family register (or its equivalent), and their relatives within 8 degrees of consanguinity or 4 degrees of kinship residing in Korea, and ②those who have been invited through a certain process such as a Korean language test or lottery selection, who are stateless ethnic Koreans with no relatives or family register in Korea.
Third, those who have a connection in Korea can obtain a visitation employment (H-2) visa from an overseas mission, while those without a connection can obtain it from an overseas mission through a Korean language test and lottery selection.
Fourth, foreign ethnic Korean workers who enter with a visitation employment (H-2) visa can complete job training at the Employment Training Center operated by the Korea Industrial Relations Foundation and then apply for employment through the Employment Center of the Ministry of Employment and Labor, where they can find employment through the center's referral or their own job search activities. However, foreign ethnic Korean workers seeking employment in the construction industry must complete construction industry job training and obtain a construction industry employment recognition certificate before they can be employed.
Fifth, employers who wish to hire foreign ethnic Korean workers must follow the same procedures as the general employment permit system and make efforts to recruit domestic workers first before obtaining a Special Employment Eligibility Certificate from the Employment Center of the Ministry of Employment and Labor for the shortage of labor.
Sixth, even under the Special Employment Permit System, a standard employment contract must be prepared when concluding an employment contract, and the employment period is determined by mutual agreement between the parties within the foreign ethnic Korean worker's period of employment. The effective date of the employment contract is the day the foreign ethnic Korean worker begins work at the business or workplace. Employers must report the start of work to the Employment Center of the jurisdiction where the workplace is located within 10 days of hiring a foreign ethnic Korean worker. As for changing workplaces, foreign ethnic Korean workers are allowed to change workplaces freely without any limit on the number of times they can change, unlike foreign workers.

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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