In the context of Korea’s labor market increasingly attracting a large number of foreign workers, particularly unskilled laborers and migrant workers, the protection of their social security rights has become a matter of significant legal and practical importance. One of the essential forms of social insurance to ensure financial security for employees is Risk Insurance. This article analyzes the legal provisions governing Risk Insurance for workers in Korea, clarifying the rights and obligations of the parties involved, as well as the applicable sanctions and penalties..

I. Overview of Risk Insurance

Risk Insurance is a form of social insurance designed to protect employees against the risks of death or disability not arising from occupational accidents or occupational diseases. It serves as a legal mechanism to ensure financial stability and to support employees in overcoming health-related difficulties or loss of working capacity beyond the scope of work-related accidents.

Under current regulations, Risk Insurance is widely applied to foreign workers employed in Korea, particularly in industries with heightened risks to health and life.

II. Regulations on applicable subjects, contribution rates, and duration

1. Applicable Subjects: Foreign workers lawfully employed in Korea are required to participate in insurance during their period of residence and employment. Participation in Risk Insurance is mandatory in order to safeguard the fundamental rights of employees.
2. Contribution rates: The contribution rates are determined based on the employee’s age and gender, ranging from 19,000 won to 50,800 won per month. These rates are intended to reflect the varying levels of risk associated with the individual characteristics of the employees.
3. Duration of the insurance contract: The term of Risk Insurance is 36 months, corresponding to the typical duration of employment contracts and aligned with the work cycles of foreign workers in Korea.

IIII. Insurance benefits and conditions of payment

1. Payment in case of death: The employee or their heirs are entitled to an insurance payment ranging from 15 million won to 30 million won, depending on the cause of death. However, cases of death resulting from suicide are not covered by the insurance, in order to prevent abuse of the scheme.
2. Benefits payable in case of disability: The insurance provides coverage of up to 15 million won for employees who suffer disabilities not arising from occupational accidents. This payment is intended to provide financial resources for employees to recover their health or to compensate for losses resulting from diminished working capacity.

IV. Obligations to pay insurance contributions and penalties

According to the law, employees must complete the payment of Risk Insurance contributions within 15 days from the date of entry into Korea. This constitutes a legal obligation intended to ensure the timely enforcement of insurance benefits.

In the event of a violation of the obligation to pay insurance contributions, employees shall be subject to the following sanctions:

• Monetary Fine: An administrative fine of up to 5 million won may be imposed for late payment or non-payment of insurance contributions.
• Deportation: In serious or repeated cases, employees may be deported in accordance with the regulations of the Ministry of Justice and the Ministry of Labor of Korea.

V. Legal and practical significance

Risk Insurance is not only a tool to protect the individual rights of employees but also a contributing factor to the establishment of a fair and stable social security system in Korea. Strict enforcement of Risk Insurance regulations helps to minimize social risks while enhancing the quality of the migrant workforce.

For employers and regulatory authorities, Risk Insurance also serves as an effective mechanism for monitoring and managing foreign workers, ensuring compliance with the law and reinforcing social responsibility in business operations.

VI. Conclusion

The regulation of Risk Insurance for employees in Korea reflects the State’s concern and commitment to protecting workers’ rights, particularly those of vulnerable migrant workers. Full compliance with insurance contribution obligations not only provides employees with peace of mind in their work but also contributes to the establishment of a healthy and sustainable labor environment in Korea.

Employees, enterprises, and relevant authorities must work in close coordination to ensure the effective implementation of Risk Insurance regulations, while also strengthening outreach and guidance efforts to raise awareness and promote compliance with the law.

VII. About NYLA – Korean Legal Office 

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