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Leaving Korea

The money you leave with

Years of work add up to money you are owed: severance, pension contributions, a deposit, a tax settlement. Most of it is collectable — but the timing is unforgiving, and getting the order wrong costs people real money.

Why the order matters more than the paperwork

Severance is legally due within 14 days of your last day — which is often after the date people plan to fly. Cancel your residence card, close your bank account, and board a plane before that clock runs out, and you are chasing the money from another country with no Korean account to receive it.

Why is that? Every payout in this list needs something you are about to give up: severance needs a Korean account, the pension refund needs your identity documents, a health-insurance settlement lands on your final payslip, and the deposit needs you to be a registered resident until the landlord pays. The exit is a sequence, not a checklist you can shuffle.

The sequence that works
Weeks before — tell your employer Confirm your last day, ask for severance to be paid in cash rather than into an IRP account (see below), and ask what the final payslip will settle.
Before your last day — hand in the tax paperwork Your year-end settlement happens with the final payslip, and only deductions you have documented get counted.
Last day → day 14 — severance Keep the Korean bank account open until it lands. This is usually the item that decides your flight date.
On or after departure — the pension refund Claim before you go, at the airport on the day, or from abroad afterwards.
Last of all — close accounts and the residence card Once nothing is still due to arrive.
If your flight has to come first, do not simply leave: the pension refund can be claimed from abroad, severance survives for three years, and E-9/H-2 departure insurance is designed to pay after you fly. What you cannot easily replace is a Korean bank account to receive it all.

Severance: one month per year, paid in 14 days

If you worked a full year for the same employer and averaged at least 15 hours a week, severance is a legal right — roughly 30 days of pay for each year of service. Nationality changes nothing, and even a worker without valid status keeps the entitlement.

Why is that? The law fixes the formula: 30 days of your average wage per year of continuous service, where the average comes from your last three months of pay divided by the calendar days in that period. If those months were unusually thin, a second rule protects you — when the average falls below your ordinary wage, the ordinary wage is used instead.

Who qualifies1+ year continuous service AND 15+ hours a week
How much≈30 days’ average pay per year worked
Whenwithin 14 days of leaving, unless you agree otherwise
If it is late20% a year in delay interest
Ask for cash, not an IRP. Severance normally has to be paid into a Korean retirement-pension (IRP) account. A work-visa holder who leaves Korea after the job ends is an explicit exception in the enforcement decree — as is any payout of ₩3,000,000 or less. Say so before your last day, or you may end up owning a Korean pension account you can only close by visiting a consulate.

On E-9 or H-2? Your severance works differently

Your employer does not hold your severance — it pays 8.3% of your monthly ordinary wage into departure guarantee insurance (출국만기보험) as you work. The catch is the timing: that money is paid out only after you have actually left Korea, within 14 days of departure or of your application.

Why is that? The rule ties payment to departure deliberately. So plan for the gap: you will be flying home before the money arrives, which means you need a receiving account that still works and a claim filed on time — the application window opens about a month before departure and closes roughly a week before you fly.

The insurance is a floor, not a cap. If the payout comes to less than the statutory severance for your service, your employer owes you the difference. Run the numbers in the calculator and compare — this gap is one of the most common ways EPS workers lose money quietly.
Premium8.3% of monthly ordinary wage, employer-paid
Paidwithin 14 days of departure (or of a later application)
Claim windowfrom about 1 month before departure, until about 7 days before
Expires3 years after entitlement — unclaimed money goes to HRD Korea
Return-cost insurancea separate product you pay for — do not confuse the two

The pension refund: not everyone gets one

Korea does not return national pension contributions to foreigners by default. The refund comes through one of three routes: your nationality is on the reciprocity list, your country’s social security agreement specifically covers the refund, or you were enrolled under a listed residence status — in practice E-9 or H-2, and that route works for any nationality.

Why is that? The rule is reciprocity: Korea refunds contributions to nationals of countries that would do the same for Koreans, plus the visa categories it has agreed to cover. That is why having a social security agreement is not automatically enough — Ireland, Denmark, Spain, Sweden, Finland, New Zealand and Norway all have agreements with Korea and are explicitly excluded from the refund, while Switzerland's exemption-only agreement does pay it.

What the refund is worth
Both halves come back Not just your own half — your employer’s matching share is refunded to you too, with interest.
The rate is rising 9% of monthly income through 2025, then half a point a year from 2026 toward 13% in 2033.
Tax is withheld It counts as retirement income, so NPS deducts tax before paying. Longer enrollment means a much lower rate.
One caveat on E-8: the statute’s E-8 was the old “employment for training” status, abolished years ago. Today’s E-8 is seasonal work, which the Employment Permit Act expressly excludes — and NPS now notes that statuses created after December 24, 2019 do not qualify. If you are on E-8, your nationality route is what matters; confirm on 1355.
You can claim before departure, at the NPS counter in Incheon Airport on the day you fly — paid in foreign currency, not won — or from abroad afterwards. The claim expires five years after you become entitled. If no route applies to you, the contributions stay on your record rather than disappearing, and some agreements let them count toward a pension at home.

Your last tax settlement happens early

If you are leaving, your year-end settlement does not wait for next February — it happens when your final month’s salary is paid. Whatever deduction paperwork you have not handed your employer by then simply does not count, and you get only the basic personal deduction.

Why is that? The employer settles the tax year for you at your last payslip, so the deadline for your receipts is earlier than you expect. And if you have income beyond a normal salary — freelance work, a business, rent — the rule is stricter still: that return is due the day before you depart, not the following May. Leave between January and May with last year still unfiled, and both years fall due before your flight.

Employeessettlement at the final payslip — submit deduction receipts first
Non-salary incomefile before you go: due the day before departure
No Korean address after leavingappoint a tax agent (납세관리인) with the tax office
Take with youthe withholding receipts (원천징수영수증) for salary and severance
If you have been using the flat 19% option for foreign workers, it applies to employment income only — it does not cover the retirement-income tax on severance or on the pension refund, which are taxed separately.

Three loose ends that can still cost you

Three smaller items, each with its own way of going wrong. Health insurance settles on your final payslip and can just as easily bill you as refund you. The housing deposit depends on you staying a registered resident until it is returned. And the bank account you are about to close is the only place the rest of this money can land.

Why is that? When employment ends, your employer recalculates the health-insurance premiums for the year and settles the difference — so a final payslip can carry an extra charge rather than a refund. Overpaid premiums can be reclaimed for three years. And if you leave for a month or more but return within six months, the gap can still be billed: a trip home does not pause your premiums.

Health insurancesettled on the final payslip; overpayments reclaimable for 3 years
Housing depositgive notice early; do not move your residency registration out before it is returned
Bank accountclose it last — after severance, refunds and the deposit have all landed
Sending it homebanks ask for proof of the income’s source, so keep the payslips and receipts

If the money does not come

Unpaid severance is a criminal matter in Korea, not a private dispute — and the complaint process is open to foreign workers, including those without valid status. You file with the Ministry of Employment and Labor, an inspector summons both sides, and non-compliance goes to prosecution.

Why is that? Wage and severance protection attaches to being a worker, not to immigration status; the Supreme Court settled that. Practically it means you have a real route even in the worst case — and it does not close when you board the plane. Severance claims stay alive for three years, and a departed worker can pursue them through a representative or free legal aid.

File a complaint (진정)MOEL labor portal online, or the office covering your workplace
Counselling1350 — English and Chinese available on weekdays
Free legal helpKorea Legal Aid Corporation, 132
If the employer cannot paythe state advance payment scheme covers part of it
Deadline3 years from the day the severance became due
Before it comes to that: keep your employment contract, payslips, and any messages about pay. Almost every successful claim rests on documents the worker kept, not on what either side remembers.

Common terms

Severance (퇴직금, toejikgeum)
30 days of average pay for each year worked — a legal right, not a bonus
Lump-sum refund (반환일시금, banhwan-ilsigeum)
Getting your national pension contributions back on leaving — only via specific routes
Departure guarantee insurance (출국만기보험)
How E-9/H-2 severance is funded — and it pays only after you fly
Average wage (평균임금)
Your last 3 months of pay ÷ the calendar days in them — the base for severance
All glossary terms

Questions people ask

Yes. The pension refund can be claimed from abroad and stays claimable for five years. Severance stays claimable for three years, and departure guarantee insurance for E-9/H-2 workers is designed to be paid after you fly. Leaving does not cost you the money you are owed — it just gets slower to chase.

Until everything has landed, yes. Severance, the final payslip, a health-insurance refund and a deposit return can all arrive weeks apart, and re-opening an account from abroad is not realistic. Close it last, once the balance stops moving.

Your employment certificate, final payslips, the withholding receipts for both salary and any retirement payout (원천징수영수증), your lease and deposit-return record, and your NPS contribution record. These are the documents anyone abroad will ask you for, and they are much harder to obtain once you are gone.

General information and estimates, not legal, tax, or immigration advice. Entitlements depend on your contract, visa, and records — confirm your own case with the National Pension Service (1355), the Ministry of Employment and Labor (1350), or a qualified professional before relying on a figure or a date.
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