Workers' Compensation Insurance in Korea: Complete Guide for Foreign Workers

What Is Workers' Compensation Insurance?

Workers' compensation insurance (산재보험; industrial accident compensation insurance) is a social insurance scheme through which the state promptly compensates workers who suffer injury, illness, disability, or death in the course of their work. Article 1 of the Industrial Accident Compensation Insurance Act (산업재해보상보험법 제1조) states that its purpose is to "promptly and fairly compensate workers for work-related injuries and to promote rehabilitation and social reintegration." The employer bears the entire insurance premium; workers pay no separate premium.

Who Is Covered?

Under Article 6 of the Industrial Accident Compensation Insurance Act (산업재해보상보험법 제6조), any workplace that employs even one worker is in principle required to enroll in workers' compensation insurance. Regular employees, contract workers, part-time workers, and daily workers are all covered as long as they qualify as workers under the Labor Standards Act (근로기준법). Workers in special forms of employment (특수형태근로종사자) — such as delivery riders, home-visit tutors, and golf caddies — may also be protected through special application provisions under Article 125 of the Industrial Accident Compensation Insurance Act (산업재해보상보험법 제125조).

Note for foreign workers: Your employment contract may specify different terms, but the statutory coverage described above is the legal minimum that applies regardless of contract language.

Requirements for Recognition as a Work-Related Injury

Article 37 of the Industrial Accident Compensation Insurance Act (산업재해보상보험법 제37조) classifies work-related injuries (업무상 재해) into three main categories:

① Work-related accident (업무상 사고): An accident that occurs while a worker is performing duties under their employment contract. This includes accidents that occur while following the employer's instructions or during preparatory or wrap-up activities for work.

② Occupational disease (업무상 질병): A disease arising from exposure to physical, chemical, or biological factors during the course of work. Cardiovascular and cerebrovascular diseases caused by overwork or stress may also be recognized as occupational diseases if a work-related connection is established.

③ Commuting accident (출퇴근 재해): An accident occurring while commuting by the usual route and method. In principle, accidents that occur after deviating from or interrupting the commute route are excluded.

Types of Benefits

Workers' compensation insurance provides a range of benefits:

• Medical care benefits (요양급여): Full coverage of treatment costs (examination, surgery, hospitalization, medication, etc.)
• Temporary disability benefits (휴업급여): 70% of average wages paid for the period during which the worker is unable to work due to medical treatment
• Disability benefits (장해급여): Annuity or lump-sum payment based on disability grade (grades 1–14) if a disability remains after treatment
• Nursing care benefits (간병급여): Paid when nursing care is still required after treatment
• Survivors' benefits (유족급여): Annuity or lump-sum payment to surviving family members in the event of death from a work-related injury
• Funeral expenses (장의비): Financial support for funeral costs in the event of death

Application Procedure

1. Complete the medical care benefit application form (요양급여 신청서): Obtain the form from the Korea Workers' Compensation and Welfare Service (근로복지공단) website or a nearby branch office.
2. Attach a physician's opinion: Submit the accident report (재해 경위서) together with a diagnosis certificate or physician's opinion.
3. Review by the Korea Workers' Compensation and Welfare Service: The Service investigates the work-related connection and decides whether to approve the claim.
4. Appealing a denial: If the claim is denied, you may appeal in the following order: request for review (심사청구, within 90 days) → request for re-examination (재심사청구) → administrative litigation (행정소송).

A worker may file the claim directly without the employer's cooperation. Any disadvantage imposed by an employer because a worker filed a workers' compensation claim constitutes a violation of Article 23 of the Labor Standards Act (근로기준법 제23조).

Check More Easily with Bylaw

Before filing a workers' compensation claim, it is important to accurately determine the number of regularly employed workers (상시근로자 수) at your workplace in order to confirm which laws and obligations apply. You can use Bylaw's (workbylaw.com) regularly employed worker count calculator to easily calculate the number of workers by employment type. You can also use the AI labor law search feature to get instant answers to workers' compensation questions, and use the complaint drafting tool to prepare for the rights-relief process.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.