[HOAM Foreign Law Column] Health Insurance & Pension: Is Your Hagwon Paying Its Share?

For E-2 visa holders in Korea, enrollment in the National Health Insurance (NHI) and National Pension (NP) is not an option—it is a legal mandate. However, some hagwon owners exploit foreign instructors by deducting the premium from their salary but failing to enroll them or pay the employer's 50% share. This is a serious legal violation that can affect both your health coverage and your future financial security.

1. The 50/50 Payment Rule

By law, the cost of NHI and NP is split equally (50/50) between the employer and the employee. Your employer is responsible for deducting your half from your monthly paycheck and sending the total amount to the respective government agencies. If you find that your hagwon is only deducting money but not contributing its share, they are in violation of social security laws.

2. 'Freelancer' Label Scam

A common tactic used by hagwons to avoid paying their share of insurance is to label you as a 'freelancer' (3.3% taxpayer). They claim that as a freelancer, you must handle your own insurance. This is illegal for E-2 visa holders. If your working relationship is that of an employee (fixed hours, fixed place, curriculum provided), you MUST be enrolled as a 'Workplace Subscriber' (Jik-jang Ga-ip-ja).

3. How to Verify Your Status

Don't take your employer's word for it. You can check your enrollment status instantly:

• National Health Insurance: Visit the NHIS website or use the 'The Health Insurance' mobile app.
• National Pension: Check via the NPS website or 'The National Pension' app. If you have been working for months but there is no record of your enrollment, your employer has likely pocketed your deductions.

4. Impact on Pension Refunds

For many foreign instructors (depending on nationality, such as US, Canada, or Australia), the National Pension is a 'bonus' you receive when leaving Korea. If your employer fails to pay, you will lose thousands of dollars in your lump-sum refund. This is your earned money, and you have the right to claim it.

5. Why Hoam Law Firm?

Social security violations are often part of a broader pattern of labor exploitation. Hoam Law Firm helps you file formal complaints with the NHIS and NPS. We work to force the hagwon to pay all back-dated premiums (including the employer's share) so that your medical benefits are restored and your pension refund is secured before you leave the country.

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