Final 30-Day Settlement Checklist Before Leaving Korea — What You Must NOT Close First

Whether you receive your departure insurance payout to a domestic or overseas account, the money is deposited only after the Ministry of Justice confirms your exit (permanent departure) (Samsung Fire & Marine Insurance, Foreign Worker Insurance guidance). The National Pension lump-sum refund is also paid after your departure is confirmed, and according to the National Tax Service's English guidebook, income tax refunds cannot be sent to accounts opened overseas. Line up those three sentences and the answer becomes clear: the money arrives after you leave, but the pipeline it flows into can only be built before you leave.

That's why departure prep isn't a checklist — it's a sequence. People don't lose money because they don't know the steps; they lose it because they do the steps out of order. If you close your Korean bank account and phone number first, the destination for your money and your identity-verification tool disappear in the same week.

Two Things You Must NOT Close First — Your Korean Bank Account and Phone Number

Let's put the three income streams — when they arrive and where they go — into one table. Once you see this, the conclusion "close your account last" follows naturally.

The collapse happens in a fixed order, too. Cancel your Korean number and SMS authentication stops working. Leave the country and surrender your Alien Registration Card (ARC), and identity verification stops. Close your account and the real-name verification foundation itself disappears. Korean workers who quit can move without losing any of these three things, but departing foreigners lose all three within a few days.

Before you think about online procedures, know this: tools like certified certificates and simple authentication are built on Korea's financial and telecom real-name system, so once your account or number is suspended, your online access gets cut off first. That's why this guide doesn't walk you through screen menus — it gives you deadlines and phone numbers.

Also be aware that your money doesn't come from one place. You have five sources at minimum: your employer (severance, unpaid wages), Samsung Fire & Marine (departure/return-cost insurance), National Pension Service (lump-sum refund), National Health Insurance Service (premium settlement), and the tax office (income tax refund). None of them talk to each other. Even if one says "all done," the other four are still pending.

D-45 ~ D-30 — Procedures That Won't Start Without a Flight Ticket

The two earliest deadlines both require a confirmed flight ticket (e-ticket). Reporting your planned departure to your local Employment Center can be done starting one month before your departure date, and Samsung Fire's insurance payout application requires at least 7 days before departure (Samsung Fire & Marine Insurance, HRD Korea guidance). So if your ticket is delayed, both procedures get pushed back.

For the departure notification, you need: departure notification form, copy of flight ticket, passport, and ARC. You can submit by visiting the Employment Center, fax, or online (EPS website). If your employer is applying for replacement labor, they can do so up to 6 months in advance.

Your employer also has a duty. When a material change occurs regarding employment of a foreign worker — such as termination of the employment contract — the employer must report it to the head of the job-placement agency (Act on Foreign Workers' Employment, etc. Article 17(1), as of 2026). If this report is delayed, it's not your exit that gets tangled — it's the employer's paperwork. Good to confirm during your exit interview.

What to Finish at Your Employer — Severance, Unpaid Wages, Departure Insurance

"14 days" appears three times, but each count starts from a different point. Bundle them together and you'll miss when to follow up.

If your employer says "go open an IRP account," you can push back with the statute. Severance pay must in principle be transferred to the worker's designated Individual Retirement Pension (IRP) account (Worker Retirement Benefit Security Act Article 9(2) main clause), but Enforcement Decree Article 3-2(1)(4) creates an exception for "a worker who provided labor in Korea under a visa allowing employment activities, then left the country after separation." However, this exception hinges on "left the country after separation," so employer/bank handling may vary. To know whether you can receive it into a regular account, take the article number to your employer and call ☎1350.

Request documents in order of their deadlines. A mid-year leaver's withholding receipt must be issued by the end of the month following the month in which the last earned-income payment date falls (Income Tax Act Article 143(1) proviso, as of 2026) — different from the end of February of the following year for active employees, so time your request based on the month you received your last paycheck. An employment certificate showing your period of service, type of work, and wage must also be issued immediately upon request, based on the facts (Labor Standards Act Article 39(1)·(2)).

Departure insurance payout and statutory severance pay are not the same pot of money. Eligibility goes to workers who have been continuously employed for one year or more (Enforcement Decree of the Foreign Workers' Employment Act Article 21(2)(2)), and if the insurance payout falls short of statutory severance, the employer must pay the difference (same Enforcement Decree Article 21(3)). Each has its own statute of limitations — wage claims 3 years (Labor Standards Act Article 49), severance 3 years (Worker Retirement Benefit Security Act Article 10), departure insurance 3 years (Foreign Workers' Employment Act Article 13(4)), return-cost insurance 3 years (same Act Article 15(3) incorporating Article 13(4) by reference).

How to receive these and what documents you need are in Severance Pay and Departure Insurance Explained. For return-cost insurance alone, see Return-Cost Insurance (E-9·H-2).

Taxes — Waiting Until May Can Be Too Late

When you leave Korea, the tax calendar gets pulled forward. When a resident moves their address or place of abode abroad and becomes a non-resident, that year's taxable period shrinks to January 1 through the day of departure (Income Tax Act Article 5(3), effective January 1, 2026).

The filing deadline arrives even sooner. A resident required to file a final tax return who departs must file the tax base for that taxable period by the day before departure (Income Tax Act Article 74(4)), and if you leave between January 1 and May 31, the same rule applies to the previous year's final return (same Article paragraph 5). This is how you can end up having to file two years' worth before you leave.

If you only had mid-year separation, your employer settles it. The withholding agent performs year-end settlement when paying earned income in the month of separation (Income Tax Act Article 137(1)), and if the worker doesn't file an income/tax-credit declaration, only the basic personal deduction and standard tax credit are applied in the calculation (same Article paragraph 3). If the sum of credits exceeds the calculated tax, the excess is refunded to the worker (same Article paragraph 2).

The refund process trips up the sequence again. The NTS English guidebook states that refunds cannot be sent to accounts opened overseas, and some foreign-affiliated financial institutions are also excluded. In other words, if you've requested a refund, you must keep your Korean account open. In addition, a taxpayer who moves their address or place of abode abroad must designate a tax agent to handle tax matters and report this to the head of the competent tax office (Framework Act on National Taxes Article 82(1)·(3)). How to fill out the forms is covered in Filing Income Tax and Using Hometax.

Health Insurance and National Pension — When Coverage Ends and What Money Remains

Your health insurance coverage doesn't end the moment you leave. Ministry of Health and Welfare Notice "Standards for Application of National Health Insurance to Long-Term Overseas Koreans and Foreigners" (MOHW Notice No. 2025-69, effective April 23, 2025) Article 4(2)(6) sets the date of regional-subscriber disqualification as the day after departure from Korea, limited to cases of staying abroad for one month or more. If you're leaving because your period of stay has ended, it falls under subparagraph 3 of the same paragraph (the day after the period of stay expires).

Why money remains has to do with the payment structure. Article 9(1) of the same Notice requires foreign regional subscribers to pay premiums by the 25th of the preceding month. Because you're prepaying the next month, there can be an overpayment at the time you leave. However, we couldn't confirm which forms and channels are used to get that prepayment back, as this Notice contains no such provisions. Whether your settlement results in a refund, additional payment, or offset against arrears should be confirmed before departure at ☎1577-1000 (National Health Insurance Service NHIS, foreign-language consultation press 6, or ☎033-811-2000). The right to claim refund of overpaid premiums has a 3-year statute (National Health Insurance Act Article 91(1)(2)). For the enrollment structure itself, see Foreign National Health Insurance Enrollment and Premiums.

The National Pension uses a completely different channel and statute. A person who was an insured person may claim a lump-sum refund if they lose their nationality or emigrate (National Pension Act Article 77(1)(3)), and the statute of limitations on this claim is 5 years (same Act Article 115(1)). The "10 years" you often see applies only to Article 77(1)(1) (a person with less than 10 years of coverage who reaches age 60) in the same provision — if you blindly copy that number over to departing workers, you can lose the claim right entirely.

Eligibility splits two ways. Per National Pension Service (NPS) guidance, you qualify if ①the law of your home country grants a benefit equivalent to the lump-sum refund to ROK nationals (reciprocity), or ②you enrolled on or after May 11, 2007 under E-8, E-9, or H-2 status (E-8 seasonal work after December 24, 2019 is excluded). The full list of reciprocity countries is not posted on the official page, so confirm your country at ☎1355. How to claim and what documents you need are in Receiving Your National Pension Lump-Sum Refund; if the beneficiary is a foreign national, telephone and fax claims are not accepted.

Accounts, Telecom, Subscriptions — Close in Order of Disappearing Authentication Tools

The closing order should go like this: Internet banking and overseas-remittance registration → clear auto-pay subscriptions → settle housing contract and utilities → cancel telecom → (very last) close bank account. Every step before the last one requires your account and phone number.

Telecom cancellation moves money in both directions. If you cancel within the contract term or shorten the term, a discount-return charge (penalty) applies; if device installments remain, the residual balance is billed together. Conversely, overpaid or unclaimed prepayments can remain during settlement — this is called unclaimed telecom refunds. You can look them up at Smart Choice (www.smartchoice.or.kr) and have them refunded to a bank account in the subscriber's name; if there are arrears, they're deducted before refund (Ministry of Government Legislation, Easy Legal Information for Daily Life). This is also money that goes into the account holder's account, so you need to keep your account open to receive it.

Your housing contract and utilities also need to be finished before you close your account. If you close your account while your security deposit refund and electricity/gas/water settlements are still pending, there's nowhere for the money to come back to. For lease procedures, see Monthly Rent Contract Guide for Foreigners.

Take photos of all documents before you leave. Withholding receipts, wage statements, employment certificates, and insurance application receipts are all in Korean, so if you try to check what you received after you get home, you'll often find you've already lost contact with the employer. Losing the paper is less of a problem than losing the channel to reissue it.

Day of Departure — Surrender ARC, Declare Cash, Transit-Card Balance

A person who has registered as a foreigner must surrender their Alien Registration Card to an immigration officer when departing (Immigration Act Article 37(1) main clause, effective January 23, 2026). You do not have to surrender if: ①you obtained re-entry permission and are temporarily leaving with intent to return within the permitted period, ②you hold a multiple-entry visa or are a national of a re-entry-exemption country temporarily leaving with intent to return within your authorized period of stay, or ③you obtained a refugee travel document and are temporarily leaving with intent to return within its validity. Surrender means the ID you used in Korea disappears, so any task requiring your ARC — bank counter visits, telecom cancellation, tax office, pension service — must be done before this day.

If you're carrying out cash, know the threshold precisely. Korea Customs Service says no declaration is needed when exporting means of payment (foreign exchange, domestic currency, KRW-denominated cashier's checks) of USD 10,000 or less. The line is "over 10,000," not "10,000 or more" (Foreign Exchange Transactions Act Article 17, Enforcement Decree Article 31, Foreign Exchange Transaction Regulations Chapter 6). If you take out undeclared amounts, violations up to USD 30,000 are subject to an administrative fine (Foreign Exchange Transactions Act Article 32); over 30,000 is punishable by imprisonment of up to one year or a criminal fine of up to 100 million KRW. If you receive both the lump-sum refund and the insurance payout in cash, the combined total can cross the line, and no agency tells you the combined amount.

Airport cash-pickup flows differ by agency. For the lump-sum refund, per NPS guidance, if you apply at a branch office one month before departure, on your departure day you receive a payment order at the Incheon Airport consultation center, then take it to Woori Bank exchange counter to receive it in one of 16 currencies including USD, EUR, JPY, CNY. For the departure insurance payout, per Samsung Fire guidance, you receive an exchange receipt at a bank counter in the departure hall, then go to a bank counter inside the duty-free zone to receive cash (Incheon Airport handling banks: KEB Hana, Woori, Kookmin; Gimhae Airport: Busan Bank). Samsung Fire states arrival at the airport 4 hours before departure is mandatory in this case. However, because sources differ on counter closing times, we haven't listed times in this guide. If you plan to pick up both on the same day, call each agency before you leave to confirm cutoff times.

Last up is your transit card. T-money balances up to about 20,000 KRW are refundable instantly at convenience stores, with a 500 KRW fee deducted each time. The card purchase price is a purchase cost, not a deposit, so it's not refundable (verified June 2026; may vary by card type and store). So it pays not to load large amounts in your final weeks. Refund limits and locations are covered in T-money Balance Refund.

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Things You Must NOT Judge from This Article — Points That Vary by Individual and Where to Confirm

The following six points should not be self-diagnosed after reading this guide. The determination belongs to the responsible agency, not the reader.

• Whether I'm eligible for the lump-sum refund — reciprocity recognition and enrollment eligibility vary by country and visa. ☎1355.
• Whether I'm subject to a final return — depends on income composition and timing of departure. ☎1588-0560 · ☎126.
• When my health insurance coverage ends — varies by length of stay abroad and whether your period of stay has expired. ☎1577-1000.
• Whether I can receive severance into a regular account — practical application of the Enforcement Decree exception varies by employer. ☎1350.
• Whether arrears or delinquencies remain and will be offset in settlement — health-insurance benefit-restriction requirements are under ongoing revision. ☎1577-1000.
• Whether my visa status is valid and re-entry is possible — this guide makes no such determination. ☎1345.

This information is current as of 2026-09; numbers, hours, and systems are subject to change. Language-support scope also varies by agency — if you ask ☎1345 about labor or tax matters, you'll just get redirected. Pick the issue first, then open the channel.

Frequently Asked Questions (FAQ)

Q1. When should I close my Korean bank account and phone number? After all your incoming money has arrived. Departure insurance payouts — whether to domestic or overseas accounts — are deposited only after the Ministry of Justice confirms your exit (permanent departure), the lump-sum refund is paid after your departure is confirmed, and according to NTS guidance, income tax refunds cannot be sent to accounts opened overseas. If you close your account first, the destination for your money disappears. Complete your internet-banking and overseas-remittance registration before you leave, and ask your bank directly about the scope of transactions allowed after your ARC expires or is surrendered — policies vary by bank.

Q2. My employer says I need to open an IRP account to receive my severance pay. Is it mandatory? Severance pay must in principle be transferred to the worker's designated Individual Retirement Pension (IRP) account (Worker Retirement Benefit Security Act Article 9(2) main clause). However, Enforcement Decree Article 3-2(1)(4) creates an exception for "a worker who provided labor in Korea under a visa allowing employment activities, then left the country after separation." It's neither "IRP only no matter what" nor "foreigners always get regular accounts" — it's a conditional exception. Give your employer this article number; if handling varies, confirm at ☎1350.

Q3. How many years do I have to claim the lump-sum refund? The statute of limitations on a lump-sum refund for loss of nationality or emigration (National Pension Act Article 77(1)(3)) is 5 years (same Act Article 115(1)). You'll often see "10 years," but that number is attached only to Article 77(1)(1) (a person with less than 10 years of coverage who reaches age 60) in the same provision. The two numbers sit in one article and are easily conflated, but if you mistake 5 for 10 and delay, the claim right itself expires. Confirm your situation at ☎1355.

Q4. Can't I just wait until the May comprehensive income-tax filing period? If you're subject to a final return, the answer can be no. Income Tax Act Article 74(4) requires a resident who must file a final return and is departing to file the tax base for that taxable period by the day before departure, and paragraph 5 of the same Article applies this rule to the previous year's return if you leave between January 1 and May 31. You may have to file two years' worth by the day before departure. Conversely, if your employer's mid-year year-end settlement covers you, you may be done — so confirm which camp you're in by calling ☎1588-0560 or ☎126 and telling them your planned departure date.

Q5. If I receive cash at the airport, do I have to declare it to customs? The line is over USD 10,000. Korea Customs Service says no declaration is needed when exporting means of payment of USD 10,000 or less. Some notices say "10,000 or more," but the statute says "over." If you take out undeclared amounts, violations up to USD 30,000 are subject to an administrative fine (Foreign Exchange Transactions Act Article 32); over 30,000 is punishable by up to one year in prison or a criminal fine of up to 100 million KRW. If you receive both the lump-sum refund and the departure insurance payout in cash at the airport, the combined total can exceed the line — calculate it before you pick up.