Severance Pay (Toejik-geum): Who Qualifies and What You Get
Learn how the severance pay system works in South Korea and how much you are entitled to receive after working for a year or more.
Severance pay is a lump-sum payment provided to workers when they leave their job after a certain period of employment.
Who it's for
This scheme is for workers who have been employed by the same employer for more than one year.
What you get
You are entitled to receive a payment roughly equivalent to one month of your salary for every year you have worked at the company.
What it costs you
There is no cost to you. Your employer is legally required to provide this payment upon your departure.
The catch to know
You should confirm whether your employer is paying your severance into a retirement pension fund (such as DC or DB plans) to ensure your funds are properly managed.
How to apply
- Confirm your total length of service with your employer.
- Check if your retirement benefits are held in a pension fund.
- Request your final payment through your employer's HR department or payroll office.