Three Key Korean Labor Law Cases Every Foreign Worker Should Know

⚠️ This article is intended for informational purposes only. For actual legal issues, please consult a licensed attorney.

The number of foreign workers in Korea has steadily increased each year. As of 2024, more than 900,000 foreigners are legally employed in Korea, forming an essential part of the country’s industrial workforce. Yet, due to language barriers and limited knowledge of the legal system, many foreign workers still suffer disadvantages in their employment conditions or fail to exercise their rights fully. Korean courts have repeatedly confirmed through case law that foreigners are equally protected under Korean labor law, regardless of their visa status or nationality. This means that as long as you work in Korea, your basic labor rights are guaranteed. In this article, we highlight three important legal precedents that every foreign worker should know, illustrating how rights are recognized and enforced in practice.

1. Foreign workers are recognized as “employees” under the Labor Standards Act (Supreme Court ruling)

Korea’s Labor Standards Act, Article 2 defines an employee as “a person who provides labor for the purpose of receiving wages, regardless of occupation.” In the past, some employers argued that foreigners without proper visas or only short-term permits were not considered “employees” under the law, and therefore not entitled to the Act’s protections. However, the Supreme Court made a clear ruling:

ㆍ Supreme Court Decision 92Da29702, Dec. 22, 1992: “Foreign workers are employees under the Labor Standards Act. Visa status or nationality is not a criterion for applying the law.”

This means that foreign workers are entitled to the same protections as Korean nationals, including wages, working hours, holidays, severance pay, and industrial accident compensation. If an employer insists, “foreigners don’t need social insurance” or “no severance is due for foreigners,” that is legally false. Foreign workers should be aware of their rights under the Act and assert them if necessary.

2. Even undocumented workers can claim unpaid wages (Supreme Court ruling)

Some foreign workers in Korea lose their legal status and become undocumented, often believing they have no right to claim unpaid wages. However, Korean courts have made it clear that the right to receive payment for labor already provided is separate from immigration status.

ㆍ Supreme Court Decision 2007Da87995, Feb. 14, 2008: “Even if a foreigner stays in Korea in violation of immigration law, if they provided labor under a contract, they have the right to claim the wages due.”

In other words, regardless of visa or residency status, wages must be paid for work already done. Of course, an undocumented worker may still face immigration penalties separately, but this does not cancel the employer’s obligation to pay. This ruling was crucial in preventing employers from exploiting undocumented workers by withholding payment. Foreign workers should remember that the right to wages is absolute once labor has been provided.

3. Industrial accident compensation applies regardless of nationality or visa (Constitutional Court and Supreme Court rulings)

Korea’s Industrial Accident Compensation Insurance Act (Industrial Insurance) ensures that workers injured or made ill on the job receive compensation. In the past, there was debate about whether foreign workers were included in its scope. The Constitutional Court and Supreme Court resolved the matter decisively:

ㆍ Constitutional Court Decision 2006Hun-Ma112, Nov. 29, 2007: “Excluding foreign workers from industrial           
   accident insurance violates the constitutional right to equality.”

ㆍ Supreme Court Decision 2009Da493: “Foreigners legally working in Korea are automatically covered under 
   industrial accident insurance.”

This reflects the reality that many foreign workers are employed in high-risk sectors such as construction, manufacturing, and agriculture. In fact, accident rates are often higher among foreign workers due to lack of safety training. If a workplace accident occurs, foreign workers are entitled to apply for industrial accident benefits through the Korea Workers’ Compensation & Welfare Service, and employers cannot refuse.

Key Takeaways for Foreign Workers

1. Foreigners are protected under Korea’s Labor Standards Act just like Korean nationals.

2. Even undocumented workers can legally claim unpaid wages.

3. Industrial accident compensation applies equally to all, regardless of nationality or visa.

4. Courts and the Constitutional Court have consistently affirmed these principles, even if some employers remain 
   unaware or attempt to exploit legal ambiguities.

Practical Tips

ㆍ Unpaid wages: File a wage claim with the Ministry of Employment and Labor.

ㆍ Workplace accidents: Apply for compensation through the Korea Workers’ Compensation & Welfare Service.

ㆍ Legal disputes: Seek support from the Korea Legal Aid Corporation (for foreigners) or labor rights NGOs.

Editor’s Note

Foreign workers are now an indispensable part of the Korean economy, but many still suffer from lack of legal knowledge and unfair treatment. The three precedents outlined here demonstrate how Korean courts have recognized and enforced the basic rights of foreign workers, ensuring that the rule of law applies equally to all. Going forward, as Korea becomes a more diverse society, it is crucial that both foreign employees and Korean employers fully understand and respect these legal principles. Fairness in rights and obligations is not only a matter of justice but also a foundation for sustainable labor relations in a multicultural society.