Insurance Your Employer Buys vs. Insurance You Buy — How to Claim Wage Guarantee and Accident Insurance for E-9 & H-2 Workers

Of the four insurance policies exclusive to E-9/H-2 workers, the two covered in this guide have completely opposite purchasers. Wage guarantee insurance is purchased by the employer (Article 23(1) of the Act on Foreign Workers Employment, etc.), while accident insurance is purchased by the foreign worker themselves (Article 23(2) of the same Act and Article 28(2) of the Enforcement Decree, as of August 2026).

The deadlines and amounts also differ. Accident insurance must be purchased within 15 days of the employment contract's effective date, while return cost insurance—another policy you purchase yourself—allows 3 months, so it's easy to mix up the two deadlines. The guarantee amount for wage guarantee insurance is 4 million KRW per insured person (Ministry of Employment and Labor Notice 2021-15, effective February 1, 2021).

And these two policies expire after 3 years. While departure insurance and return cost insurance transfer to the Human Resources Development Service of Korea, guarantee insurance and accident insurance have no such transfer provision, so they simply lapse under the 3-year statute of limitations in Article 662 of the Commercial Act.

The Two Policies This Guide Covers — Opposite Purchasers

Korean coworkers don't have these policies, so there's no one to ask, and the similar names make all four blur together. Sorting them out first makes the rest easier.

Departure insurance and severance calculation are covered in Departure Insurance & Severance Pay Guide, while return cost insurance with country-specific premium amounts is detailed in How to Claim Return Cost Insurance.

Wage Guarantee Insurance — Your Employer Buys It, You Claim It

Employers must purchase guarantee insurance within 15 days of the employment contract's effective date, but not just any policy will do. Article 27(2) of the Enforcement Decree requires three conditions: ①coverage of at least the amount specified by notice, ②the guarantee insurance company must notify the foreign worker of enrollment, and ③in the event of wage arrears, the foreign worker must be able to claim the insurance payout directly from the guarantee company.

The third condition is key. This insurance is designed from the outset for workers to claim directly—that's a qualification requirement. The second condition is also important in practice. Notifications are often sent in Korean to the employer's or dormitory's address, so they never reach the worker. If you don't remember receiving notification, that doesn't mean you're not enrolled—it means you need to look through the documents you received when signing your employment contract and ask your employer and the local employment center for the insurance company name and policy number.

Don't give up on the spot if someone says "the company didn't pay the premiums." Article 726-6(2) of the Commercial Act provides that even if the policyholder (the employer) committed fraud, intent, or gross negligence, if the insured (the worker) has no responsible cause, exemption clauses based on breach of disclosure duty (Articles 726-5 and 726-6) do not apply (as of 2026).

Is My Employer Subject to Guarantee Insurance? — The 300-Worker Mark and Construction Determine the Path

Guarantee insurance doesn't apply to all workplaces. But accident insurance does—no exemptions. This is a point where the two policies differ, so they need to be viewed side by side.

The Wage Claim Guarantee Act applies to businesses subject to Article 6 of the Industrial Accident Compensation Insurance Act (Wage Claim Guarantee Act Article 3), and Article 6 of the Industrial Accident Compensation Insurance Act applies to all businesses using workers. So in practice, ②fewer than 300 regular employees is the more common trigger than ①.

If you're an H-2 worker in construction, you may be excluded from guarantee insurance here. But don't stop at "I'm in construction so I have nothing"—accident insurance has no such exclusion, so your obligation to purchase accident insurance remains in place.

The 4 Million KRW Guarantee Amount — That's the Insurance Limit; the Rest Opens Other Doors

The guarantee amount is 4 million KRW per insured person (Ministry of Employment and Labor Notice 2021-15, issued and effective February 1, 2021). This is a 100% increase from the previous 2 million KRW, and the addenda state "applies to cases where the employment contract became effective on or after February 1, 2021."

Several months of unpaid wages exceed this limit. So misjudgments happen in both directions. "I got the insurance payout, so it's over" is wrong, and "it's only 4 million KRW, so there's no point starting" is also wrong. The amount beyond the limit doesn't disappear—it opens other doors: labor office grievances, substitute payment under the Wage Claim Guarantee Act, and civil litigation.

Substitute payment is not just for former employees. Article 7-2(1) of the Wage Claim Guarantee Act provides substitute payment even to current employees whose employment contracts have not ended. The scope is the last 3 months of arrears counting back from the date of filing a grievance, and it's paid only once during employment at a single business (paragraphs 2 and 4 of the same article). Amount requirements and caps are set by lower-level regulations, so check with ☎1350.

One point to note in advance: The "Certification of Unpaid Wages, etc. / Employer Confirmation" issued by local labor offices is governed by Article 12(1) of the Wage Claim Guarantee Act, which lists only two grounds for application: substitute payment claims and legal aid litigation. Guarantee insurance claims are not on that list, so don't assume taking this certificate alone will yield an insurance payout. And any procedure requires specifying the unpaid amount. If your pay stub is in Korean and you can't tell what's base pay, see Minimum Wage & How to Read Your Pay Stub first.

Accident Insurance — Insurance 'You' Must Buy, Not Your Employer

This is the most frequently reversed point in this guide. The text of Article 23(2) of the Act and Article 28(2) of the Enforcement Decree reads "the foreign worker shall … enroll." It's not insurance your employer provides for you.

The deadline is within 15 days of the employment contract's effective date. Employment training, contract signing, and entry formalities all cluster together right after arrival, so employers or agencies often handle paperwork on your behalf, and 15 days pass before you know what you signed.

The direction of penalties is also widely misunderstood. Article 30(2) of the Act prescribes a criminal fine of up to 5 million KRW for "a person who fails to purchase guarantee insurance or accident insurance under Article 23." It says 'a person,' not 'an employer,' and since the accident insurance enrollment obligation falls on the worker, this fine applies to the worker as well (as of 2026). Note that the other self-purchased policy—return cost insurance—carries an administrative fine (not a criminal fine) for non-enrollment (Article 32(1)(6))—the type of penalty differs.

When and How Much Does Accident Insurance Pay? — 30 Million KRW Is the Cap, Not a Flat Amount

Amounts are set by Ministry of Labor Notice 2004-30 (issued August 11, 2004, effective August 17, 2004). It's this notice, not an Enforcement Decree provision, that's the basis.

This guide is current as of August 2026; laws and notices are subject to amendment.

Accident-related disability is calculated by multiplying the maximum payout by the Schedule 1 rate. So 30 million KRW is the highest-case amount. Actual values in Schedule 1 include: complete blindness in both eyes 100%, complete loss of hearing in both ears 80%, blindness in one eye 60%, loss of one arm above the wrist or one leg above the ankle 60%, loss of a thumb above the finger joint 20%, conspicuous scarring on the face 15%, mild intervertebral disc herniation 10%. Using the thumb example: 30,000,000 KRW × 20% = 6,000,000 KRW.

Illness-related disability is even narrower. Schedule 2 lists 9 specific conditions—complete permanent loss of sight in both eyes, complete permanent loss of chewing or speaking function, lifelong need for constant nursing care, etc.—and pays only in those cases. If the disability is not yet finalized, diagnosis is based on 180 days after the accident date.

In summary, this insurance covers death and disability, not treatment costs when you're injured. What else is actually included in the policy must be confirmed with your insurance company. For death, the claimant is the survivor (Enforcement Decree Article 28(2)(2)), so it's wise to inform your family of the enrollment and provide the insurer name and policy number in advance.

Don't Confuse It with Industrial Accident Insurance — Different Channels, Different Statutes, Separate Systems

The mistake "I have accident insurance, so I don't need industrial accident coverage" actually happens. They're separate systems with different legal bases and channels—you don't choose one; you evaluate each independently.

The industrial accident application procedure itself is detailed separately in Industrial Accident Insurance Application for Foreigners. Whether your accident is work-related is determined by the Korea Workers' Compensation & Welfare Service, so don't reach conclusions on your own in this guide.

After 3 Years — These Two Do NOT Transfer to the Service

This is the most costly misunderstanding. The guidance "it remains with the Service after 3 years" refers to departure insurance and return cost insurance only. Departure insurance (Article 13(4) second sentence) and return cost insurance (Article 15(3) applying that provision by reference) mandate transfer to the Human Resources Development Service of Korea, and Enforcement Decree Article 21-2(1)(1) also limits deliberation subjects to those two. Article 23 contains no such cross-reference provision.

Once you've returned home and learn about this, there's no way to reverse it, and filing claims with a Korean insurer from your home country is much harder. So here's a checklist of things to verify before departure:

• Did you receive notification of guarantee insurance enrollment? If not, did you ask your employer and employment center for the insurer name and policy number?
• Are you enrolled in accident insurance, and where are your policy documents?
• Are your bank account and contact information still active, and have you informed your family of the insurer and policy number?
• Do you have your employment contract, pay stubs, bank deposit records, and medical certificates in hand?

However, don't self-diagnose these—there are specific authorities to make these determinations:

• Whether my workplace has fewer than 300 regular employees or is construction (Article 12(1)(1)) → ☎1350
• Whether my accident is work-related / which part of Schedule 1 or 2 my disability falls under → Korea Workers' Compensation & Welfare Service and your insurance company
• When my statute of limitations begins → Your insurance company and local employment center
• Issues involving immigration status (absconding, overstaying, etc.) → ☎1345

Online grievances are filed through the Labor Portal (labor.moel.go.kr). The practical sequence is ☎1350 for substance, ☎1345 if language is a barrier. If you're unclear which channel to contact for what, see Complete Guide to Official Help Channels for Foreign Workers first.

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Frequently Asked Questions (FAQ)

Q1. Isn't accident insurance something my employer provides? No. The text of Article 23(2) of the Foreign Workers Employment Act and Article 28(2) of the Enforcement Decree reads "the foreign worker shall … enroll." The deadline is within 15 days of the employment contract's effective date, and non-enrollment carries a criminal fine of up to 5 million KRW (Article 30(2)), which is directed at "a person" without specifying employer, so it applies to workers as well. Even if your employer handled the paperwork, verify enrollment and get the insurer name and policy number yourself. If unsure, call ☎1350.

Q2. I never received notification of guarantee insurance enrollment. Does that mean I'm not covered? Not necessarily. Enforcement Decree Article 27(2)(2) requires that the product notify the worker of enrollment, but notifications are often sent in Korean to the employer's or dormitory's address, so they don't reach you—especially if you changed workplaces or moved. "Didn't receive notification" and "not enrolled" are different statements. Review the documents you received when signing your employment contract and ask your employer and the local employment center for the insurer name and policy number.

Q3. My unpaid wages exceed 4 million KRW. What happens to the rest? The guarantee amount is 4 million KRW per insured person (Ministry of Employment and Labor Notice 2021-15, effective February 1, 2021). The excess isn't covered by insurance—it opens doors to labor office grievances, substitute payment under the Wage Claim Guarantee Act, and civil litigation. Substitute payment isn't just for former employees; current employees also have a path (Wage Claim Guarantee Act Article 7-2(1), last 3 months retroactive, once per business). Receiving the insurance payout doesn't extinguish all your wage claims, nor are the two claims completely unrelated, so the settlement relationship varies by case. Check with ☎1350.

Q4. I was injured at work. Should I go for accident insurance or industrial accident coverage? It's not either/or—they're based on different laws, so you evaluate each independently. Industrial accident insurance (Korea Workers' Compensation & Welfare Service) handles work-related accidents, occupational diseases, and commuting accidents (Industrial Accident Compensation Insurance Act Article 37(1)) with a 3-year statute of limitations (5 years for disability benefits, survivor benefits, funeral expenses, etc., Article 112(1)). Accident insurance (your insurance company) handles death and disability with a 3-year statute under Commercial Act Article 662. This guide can't determine which applies to your accident, so see Industrial Accident Insurance Application for Foreigners for the industrial accident procedure, and ask your insurance company about the payout side.

Q5. Three years have passed. Can I retrieve it later from the Human Resources Development Service of Korea? Not for these two. Only departure insurance (Article 13(4) second sentence) and return cost insurance applying that provision by reference (Article 15(3)) transfer to the Service; Enforcement Decree Article 21-2(1)(1) also limits deliberation subjects to those two. Article 23 has no such cross-reference, so guarantee insurance and accident insurance expire under the 3-year statute in Commercial Act Article 662. However, the starting point of the statute varies by case, so we cannot determine how much time remains. Check first with your insurance company and local employment center, and if unclear, also call ☎132.