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- What is Workers’ Compensation Insurance or Industrial Accident Compensation Insurance?
- It is a social security insurance that compensates for various medical treatment costs and death in the event of occupational accidents. The government collects an insurance premium from the employer and compensates the employees who suffer from industrial accidents with the funds.
- All employers, having at least one permanent employee, must enroll all their employees including foreign employees regardless of their age or visa status in the Workers’ Compensation Insurance.
Employers are solely responsible for paying the insurance contributions, and the insurance rates are determined according to the industry of the employer.
- It is a social security insurance that compensates for various medical treatment costs and death in the event of occupational accidents. The government collects an insurance premium from the employer and compensates the employees who suffer from industrial accidents with the funds.
- Some people criticize the schemes for being too lenient, letting foreigners “free-ride” the system and consequently putting a financial burden on Korean citizens. Is this true?
- It is important to note that the foreign population in Korea is not “free-riding” the social insurance schemes, especially National Health Insurance, as some people continuously worry.
- In fact, it was officially reported by the National Assembly Research Service that foreigners, as a whole, received fewer insurance benefits than the premiums they paid. In other words, contrary to the perception that foreigners are eating away at health insurance finances, the health insurance deficit in Korea is partially covered by insurance premiums paid by foreigners.
- Until July 2019, foreigners and overseas Koreans could arbitrarily join the local health insurance if they stayed in Korea for three months. And due to these institutional loopholes, there had been a few cases in which foreigners or overseas Koreans with severe or chronic diseases entered Korea and left the country without paying health insurance premiums or choosing to join health insurance only when expensive treatment is needed. Since then, however, they must have resided in Korea for over 6 months before they can join the local health insurance.
- It is important to note that the foreign population in Korea is not “free-riding” the social insurance schemes, especially National Health Insurance, as some people continuously worry.
- In South Korea, there are occasional floods and typhoons in the summer and fall. If people were injured or lost jobs from such natural disasters, could they benefit from the four major social insurance schemes?
- That’s a very good question. Of the four major social insurance schemes, the most relevant seems to be the National Health Insurance for those who were injured in a natural disaster.
- However, if you were injured by a natural disaster while you were working, you may also qualify to benefit from the Workers’ Compensation Insurance or the Industrial Accident Compensation Insurance, although each case will be determined differently based on the circumstance of the incident. Lastly, if you lost your job or perhaps the workplace due to a natural disaster, you may also qualify to benefit from Employment Insurance.
- If you believe that you have been unfairly treated by your employer regarding the four major social insurance schemes or if you would like to ensure that you are fully abiding by the relevant laws and regulations regarding the four major social insurance schemes, you can make inquiries to the Ministry of Employment and Labor.