For hundreds of thousands of foreign nationals working in South Korea under the Employment Permit System (EPS), completing a multi-year manufacturing, agricultural, or construction contract and returning home is a life-changing milestone. Under South Korean labor regulations, foreign workers are legally entitled to statutory retirement severance pay (퇴직금). However, because historical compliance challenges previously led to unpaid severance when workers returned abroad, the South Korean government established a mandatory, state-supervised financial escrow mechanism known as Departure Guarantee Insurance (출국만기보험).
Administered under Article 13 of the Act on the Employment of Foreign Workers (외국인근로자의 고용 등에 관한 법률), Departure Guarantee Insurance is legally mandatory for all employers hiring foreign workers holding E-9 (Non-professional Employment) and H-2 (Working Holiday / Visit Employment) visas. Instead of paying retirement severance at the end of employment out of company pockets, employers must make monthly escrow contributions to a designated trust fund managed by Samsung Fire & Marine Insurance (삼성화재). When leaving South Korea permanently, the foreign worker claims these accumulated savings directly in cash or foreign currency at Incheon International Airport or via overseas wire transfer. Below is the essential legal and practical guide to verifying your monthly insurance deposits, claiming your payout at the airport, and exercising your statutory right to claim any unpaid severance difference directly from your employer.
1. Legal Framework: Mandatory Employer Contributions & 15-Day Rule
Departure Guarantee Insurance serves as the statutory equivalent of retirement severance pay under Article 34 of the Labor Standards Act (근로기준법) for EPS foreign workers. Under the law, the obligation to purchase and maintain this insurance rests 100% on the employer—zero won may be deducted from the worker’s salary.
Every employer who hires an E-9 or H-2 foreign employee must complete insurance enrollment within 15 days from the effective date of the labor contract. Each month, the business owner must deposit a fixed percentage (equivalent to 8.3% of the employee’s monthly base pay) into the dedicated Samsung Fire escrow account. If an employer fails to enroll in Departure Guarantee Insurance within 15 days or defaults on monthly premium payments, the Ministry of Employment and Labor (MOEL) imposes an administrative fine of up to 5,000,000 KRW under Article 30 of the Act on the Employment of Foreign Workers, and the business faces long-term restrictions on hiring future foreign personnel.
| Comparison Dimension | Departure Guarantee Insurance (출국만기보험) | Standard Statutory Severance (법정 퇴직금) |
|---|---|---|
| Governing Legislation | Act on the Employment of Foreign Workers (Article 13) | Labor Standards Act & Retirement Benefit Security Act |
| Target Workers | E-9 and H-2 visa holders | All employees (Korean nationals, E-7, F-visas, etc.) |
| Funding Mechanism | Monthly escrow trust deposits to Samsung Fire | Company book reserve or external retirement pension (퇴직연금) |
| Payout Trigger | Physical departure from Korea or workplace change after 1+ yr | Termination of employment / retirement after 1+ year |
| Payout Disbursement | Airport currency pickup past customs or overseas wire | Direct bank transfer within 14 days of retirement |
2. The Vital Legal Rule: The Severance Differential Right (차액청구권)
One of the most critical legal protections that thousands of foreign workers overlook is the Statutory Severance Differential Claim (퇴직금 차액청구). It is essential to understand that Departure Guarantee Insurance is NOT always equal to full legal severance pay:
How Legal Severance is Calculated under Korean Labor Law:
Under Article 8 of the Act on the Guarantee of Employees’ Retirement Benefits, an employee who has worked continuously for 1 year or more is entitled to 30 days of “Average Wage” (평균임금) for each year of continuous service. The Average Wage includes not only basic salary, but also all regular overtime payments, night shift allowances, and statutory bonuses earned over the 3 months immediately preceding retirement.
Why Insurance Payouts Fall Short:
Because employers contribute a fixed monthly sum to Departure Guarantee Insurance based on the original contractual base wage, if you worked substantial overtime (as highlighted in our 2026 Korea Minimum Wage & Overtime Guide) or received wage raises during your employment, your statutory legal severance pay will be significantly higher than the insurance payout accumulated with Samsung Fire.
The Law is Clear: Under Article 13, Paragraph 3 of the Act on the Employment of Foreign Workers, “If the amount of the departure guarantee insurance payout is less than the amount of retirement allowance (퇴직금) calculated under the Labor Standards Act, the business owner must pay the difference directly to the foreign worker.”
Illustrative Calculation:
Suppose an E-9 worker completes 3 years of continuous service at a factory. Based on extensive overtime, their statutory retirement severance calculated under the Labor Standards Act is 9,500,000 KRW. However, the accumulated Departure Guarantee Insurance payout from Samsung Fire is only 7,100,000 KRW. By law, the employer is legally obligated to transfer the remaining difference of 2,400,000 KRW directly to the worker’s Korean bank account before departure. If the employer refuses, it constitutes criminal wage theft punishable by the labor board.
3. Step-by-Step Procedure: Claiming Payouts at Incheon Airport
Foreign workers who have booked their return flight tickets should apply for their departure insurance payout approximately 1 month to 2 weeks before their scheduled flight departure date. To claim your funds at Incheon International Airport on the day of departure, follow these verified administrative steps:
Step 1: Obtain a Return Flight Ticket
Book your one-way flight departure from South Korea. Ensure the departure date falls before your authorized period of stay expires on your Alien Registration Card (ARC).
Step 2: Submit the Insurance Claim Application
Contact Samsung Fire & Marine Insurance Foreign Worker Dedicated Customer Center at 1644-0007 (multilingual support available in 16 languages) or visit a regional Foreign Worker Support Center. Alternatively, you can apply directly through the Samsung Fire Foreign Worker EPS Mobile Application or website:
- Select Payout Method: Choose “Airport Receipt (공항수령)” to pick up your cash at Incheon Airport, or “Overseas Bank Transfer (해외송금)” if you prefer funds sent to your home country bank account.
- Select Preferred Currency: If selecting Airport Receipt, you can receive funds converted into US Dollars (USD), Euros (EUR), or Korean Won (KRW).
- Submit Supporting Documents: Upload your passport copy, flight e-ticket confirmation, copy of your Alien Registration Card, and your Korean bank passbook copy.
Step 3: Receive Insurance Payment Directive (지급지시서)
Upon review, Samsung Fire verifies your employment records and issues an official Departure Guarantee Insurance Payment Notice (보험금 지급지시서) via SMS and email. This document contains your claim approval number and designated airport bank branch instructions.
Step 4: Claiming Cash Past Customs at Incheon Airport
On your departure day, arrive at Incheon International Airport at least 4 hours before your flight:
- Airport Check-in & Luggage: Check in at your airline counter and obtain your official boarding pass.
- Immigration Clearance (출국심사): Proceed through airport security screening and immigration exit control. Hand over your physical Alien Registration Card to the immigration officer (or have it returned stamped if holding a re-entry permit).
- Visit Designated Airport Bank Booth: After passing immigration exit control (Airside area inside the departure concourse), locate the designated commercial bank counter (Woori Bank, Hana Bank, or Shinhan Bank as specified on your Samsung Fire directive) in Terminal 1 or Terminal 2.
- Present Documents & Collect Cash: Present your boarding pass, passport, and Samsung Fire payment directive. The bank officer will immediately dispense your accumulated severance insurance payout in pristine USD cash or local currency.
4. Return Cost Insurance (귀국비용보험) & Overdue Wage Guarantee
In addition to Departure Guarantee Insurance, every foreign worker must understand the two other specialized EPS insurance funds:
1. Return Cost Insurance (귀국비용보험)
Unlike Departure Guarantee Insurance which is paid by the employer, Return Cost Insurance is purchased by the foreign worker themselves within 80 days of arriving in Korea. Workers deposit a statutory lump sum (ranging from 400,000 KRW to 600,000 KRW depending on their home country flight distance, e.g., 400,000 KRW for China/Vietnam, 500,000 KRW for Philippines/Thailand/Indonesia, 600,000 KRW for Sri Lanka/Nepal). This deposit earns interest and is refunded in full to the worker at Incheon Airport along with their departure insurance when returning home.
2. Guarantee Insurance for Overdue Wages (임금체불보증보험)
Employers must also enroll in Guarantee Insurance for Overdue Wages (up to 2,000,000 KRW coverage) to protect workers in the event that the company experiences bankruptcy, severe financial distress, or corporate closure without paying final wages.
5. Essential Pre-Departure Documentation Checklist
Before heading to the airport for final departure, verify that you possess physical and digital copies of the following records:
- Valid Passport & Boarding Pass: Mandatory for identity verification at the airport banking booth past immigration control.
- Samsung Fire Payment Directive (보험금 지급지시서): Received via SMS/email confirming your approved payout sum.
- Employment Departure Confirmation (출국예정신고서): Filed at the local Employment Center (고용센터) or HiKorea to confirm authorized contract completion.
- Calculated Severance Difference Receipt: Written confirmation showing full settlement of the Average Wage difference paid by your employer.
- Overseas Bank Account Details: Bank swift code, account number, and home country branch address (in case international wire transfer is necessary).
6. Frequently Asked Questions (FAQ)
Q1. Can I receive my Departure Guarantee Insurance if I change workplaces (사업장 변경) before leaving Korea?
Under the revised Act on the Employment of Foreign Workers, if you change workplaces after working for more than 1 year at your initial company, your accumulated Departure Guarantee Insurance is NOT disbursed to you immediately in cash. Instead, it remains securely deposited in the Samsung Fire trust fund. When you complete your entire duration of stay in South Korea and depart for your home country, all accumulated insurance funds across all registered employers are aggregated and disbursed to you simultaneously.
Q2. What happens to my Departure Guarantee Insurance if I worked less than 1 year (12 months)?
Under Korean labor law, statutory retirement severance pay is only granted to employees who complete at least 1 full year (365 days) of continuous service. If an E-9 or H-2 worker returns home or changes workplaces before completing 1 year of employment, the foreign worker is not entitled to severance pay, and the accumulated monthly premiums in the Departure Guarantee Insurance fund are legally refunded back to the employer.
Q3. Where are the payout bank counters located in Incheon Airport Terminal 1 and Terminal 2?
Payout counters are located strictly inside the duty-free boarding area (past immigration control):
- Terminal 1: Near Gate 25 and Gate 29 (Woori Bank & Hana Bank financial service counters).
- Terminal 2: Near Gate 250 and Gate 252 (Hana Bank financial service booth).
Do not attempt to collect your funds before passing through security screening, as external bank branches in the public terminal cannot access departure insurance payout funds.
Q4. What should I do if my flight is on a weekend or late at night when airport banks are closed?
Designated Incheon Airport payout bank counters past immigration operate daily from 06:00 to 22:00 KST. If your flight departs during late-night or early-morning hours (22:00 to 06:00) when airport booths are closed, you must select the Overseas Bank Transfer (해외송금) option when applying with Samsung Fire. Samsung Fire will wire your insurance payout directly to your home country bank account within 14 business days after immigration logs your exit record.
JJAN Korea Policy & Legal Verification Desk
Regulatory Reference: Act on the Employment of Foreign Workers (외국인근로자의 고용 등에 관한 법률) Article 13 (Departure Guarantee Insurance) & Article 15 (Return Cost Insurance), Labor Standards Act Article 34, and Samsung Fire & Marine Foreign Worker Insurance Regulations.
Verification Authority: Republic of Korea Ministry of Employment and Labor (고용노동부), Human Resources Development Service of Korea (한국산업인력공단), and Incheon International Airport Corporation.
