TITLE : FAQ on FDI in Korea 2023 (Q161~Q165)
페이지 정보
본문
■ FAQ on FDI in Korea 2023 (Q161~Q165)
Labor
Q161 | Should only Sunday be designated as the weekly holiday? |
According to Article 55 of the Labor Standards Act, a day ofpaid leave must be guaranteed for an average of at least oncea week. However, it does not prescribe a certain day as theweekly holiday. This means Sunday does not necessarilyhave to be the designated weekly holiday. The day whichmarks the beginning of a week can be designated througha discussion among labor and management in accordancewith internal provisions, the rules of employment, laborcontract and collective agreements.
Q162 | Can executives of foreign-invested companies subscribe to employment insurance? |
The employee of a business that has employment insurancebecomes the insured person of the employment insurance,but the representative director, etc. is not. The employeeprovides labor under the instruction and supervision of thebusiness owner, and receives wages in return. Directors,auditors and representatives of a corporation, or a personin the position of an executive body are not employees.However, even if one holds the title of a managing directoror executive vice-president, if he/she does not have actualauthority to execute operations and is not accountable forthe business of the company, but provides services in asubordinate role, he/she is an employee, and therefore hisactual status should be judged based on such specific facts.
Q163 | In what cases can a foreign employee be exempted from subscribing to national pension? |
Foreigners residing in Korea must subscribe to nationalpension, just as domestic persons. When a foreigner aged 18or older but younger than 60 is employed by a business thatsubscribes to national pension, he/she becomes classifiedas a business subscriber, while other foreigners becomelocal subscribers.
- In the following cases, persons are exempted from national pensionsubscription:
- Trainees from abroad (employment as trainee requires subscription),foreign students, diplomats, and other cases in which legislationexcludes persons from mandatory National Pension subscription
- Nationals of countries that do not does not require mandatorysubscription to a pension system like the Korean national pension
- When an employee has been dispatched to Korea from a country thathas established a social security agreement with Korea submits acertificate of subscription of his/her home country
※ One must inquire with the National Pension Service to check on national pensionsubscription requirements per country of origin and sojourn status
Q164 | As a foreigner who works for a foreign-invested company (D-8 Visa holder), is it mandatory to subscribe to national health insurance? |
In principle, mandatory subscription applies in this case.However, according to Article 109 (5) of the National HealthInsurance Act and Article 61-4 of the Enforcement Rulesof the same Act, a foreigner residing in Korea can receivesubstantial medical coverage amounting to recuperationpay in accordance with foreign laws, foreign insuranceor a contract with the employer. When the employer orsubscriber has applied for subscription exemption, theperson need not subscribe.
< Procedure for application for exemption from subscription >
When a foreigner is eligible to apply for exemption fromsubscription to national health insurance, the employer shall submitthe Report on Disqualification from Workplace Subscription to theNational Health Insurance Service by attaching the following forms:
- When receiving medical coverage pursuant to the laws, decreesand insurance of the foreign country
- A copy of a certificate confirming applicability of foreign laws,or a document proving that the foreigner can receive medicalcoverage domestically such as an insurance policy (includingKorean translation)
- A copy of a document that indicates the intent of the foreignerto withdraw from health insurance
- When receiving medical coverage pursuant to a contract with theemployer, etc.
- A copy of a document such as labor contract that can provesthat the foreigner can receive medical coverage domestically(including Korean translation)
- A copy of a document certifying that medical expenses havebeen paid to the foreign employee by the pertinent businesssite (including Korean translation)
- A copy of a document that indicates the intent of the foreignerto withdraw from health insurance
※ Working level matters such as specific procedures or required documentationmust be confirmed by the National Health Insurance Service.
Q165 | If a foreigner returns to his/her home country, can he/she receive a refund for his/her national pension contributions? |
When a foreigner returns to his/her home country, a refundto the foreign subscriber of national pension fund in theform of a lump sum payment shall be granted only in thefollowing cases (source: www.nps.or.kr, Foreigners andLump Sum Refund):
- When the foreigner's home country’s law provides for the payment of anallowance to a Republic of Korea citizen that is tantamount to a lumpsum refund paid by the Korean system
- When a social security agreement on the payment of a lump sum refundhas been established between Korea and the home country of the foreigner
※ Countries that are party to a social security agreement (Jul. 2022, 22 countries):Germany, US, Canada, Czech Republic, Hungary, Australia, France, Belgium,Bulgaria, Poland, Slovakia, Romania, Austria, India (Nov. 1, 2011), Turkiye (formerlyTurkey, Jun. 1, 2015), Switzerland (Nov. 1, 2015), Perum Luxemburg, Slovenia,Croatia, Uruguay
※ There are other countries that are parties to a reciprocity recognition agreementwith Korea (24 countries), and since recognition may be determined depending onthe minimum subscription period, it is necessary to inquire the National PensionService on whether a lump sum refund can be made. - When a foreigner with status of stay of E-8 (Industrial Trainee), E-9(Non-Professional), or H-2 (Work and Visit) has subscribed to nationalpension
※ When a foreigner claims a lump sum refund on the ground that he/she hasto return to his/her home country, the lump sum refund is paid only when it isconfirmed that he/she has departed. However, when a document is submittedproving that the person plans to leave the country within one month such as aplane ticket, a claim for a refund can be filed before departure.