Tax Refund When Leaving Korea

Overview: Money You Might Be Owed

When leaving Korea, many foreigners are unaware that they may be entitled to significant refunds and payments. Depending on how long you worked and what you paid into, you could be owed hundreds of thousands to millions of won. Here is a summary of what to check:

• Year-end settlement refund (연말정산 환급): If you overpaid income tax during the year, you get money back.
• National Pension lump-sum refund (국민연금 반환일시금): Your pension contributions returned when you leave.
• Severance pay (퇴직금): Mandatory payment if you worked 1+ years at one employer.
• Employment Insurance benefits (고용보험): You may qualify for jobseeker's allowance in certain cases.
• Unused annual leave pay (미사용 연차수당): Compensation for unused paid vacation days.

Year-End Settlement Refund (연말정산 환급)

Throughout the year, your employer withholds estimated income tax from each paycheck. The year-end settlement (연말정산) process reconciles what you actually owe versus what was withheld. If you overpaid, you receive a refund; if you underpaid, you owe additional tax.

If you leave before January-February: You need a mid-year settlement (중도퇴사 정산). Your employer should process this with your final paycheck, calculating your tax liability for the partial year and issuing any refund directly. Make sure to request this from your HR department or accounting team before your last day.

If your employer does not process it: You can file a tax return directly at the local tax office (세무서) before departure, or use Hometax (홈택스) to file online. You will need your income withholding receipt (원천징수영수증) from your employer. Learn more in our Year-End Settlement Guide.

National Pension Lump-Sum Refund (국민연금 반환일시금)

If your home country does not have a social security agreement with Korea (or has a limited agreement), you can claim a lump-sum refund of all your National Pension (국민연금) contributions when you leave. This includes both your 4.5% contribution and your employer's matching 4.5%, plus interest.

Use our Pension Refund Calculator to estimate how much you will receive back.

Health Insurance, Employment Insurance & Severance

Health Insurance (건강보험): There is no refund for health insurance premiums -- they paid for your medical coverage while you were in Korea. However, you must cancel your health insurance to avoid continued billing. Contact the NHIS (국민건강보험공단) at 1577-1000 or visit a local branch before leaving. If you have unpaid medical bills, settle them before departure.

Employment Insurance (고용보험):In most cases, foreigners leaving Korea voluntarily cannot claim unemployment benefits. However, if you were involuntarily terminated (layoff, contract expiration, company closure), you may qualify for jobseeker's allowance (구직급여) even as a foreigner. Consult your local Employment Center (고용센터) before departure.

Severance Pay (퇴직금): If you worked at one employer for 1 year or more, your employer must pay severance equal to approximately 1 month's average salary per year worked. This is legally required within 14 days of your last working day. Do not leave Korea without confirming your severance payment. Calculate your expected amount with our Severance Calculator.

Income Tax for Partial Year Workers

If you worked only part of the year in Korea, your tax situation requires special attention. Your employer withholds tax monthly based on the assumption you will work the full year. When you leave mid-year, the total tax withheld may exceed your actual tax liability for the months worked, resulting in a refund.

If you chose the 19% flat tax rate (외국인 단일세율), your calculation is straightforward -- 19% of your actual earned income with no deductions. If you chose progressive tax rates, your partial-year income may fall into a lower tax bracket, potentially resulting in a larger refund. Use our Tax Comparison Calculator to compare flat vs progressive tax for your situation.

Checklist Before Leaving Korea

Use this timeline to make sure you do not miss any refunds or leave any loose ends:

Frequently Asked Questions