Requirements for Companies to Hire Foreign Workers, Essential Checklist for Employers

Industry restrictions, staffing rules, and the Employment Permit System — all at a glance

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2025-06-03
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5 min read
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In recent years, more companies have been considering hiring foreign workers to address labor shortages and strengthen global competitiveness.

This trend is particularly evident in industries such as manufacturing, construction, and agriculture/livestock,

where domestic job seekers are in short supply. For these industries, hiring foreign labor is no longer optional—it’s a necessity.

However, employing foreign workers is not something that anyone can do freely.

Employers must meet legal requirements such as business eligibility, industry restrictions, and workforce quotas.

In particular, for certain types of foreign visas, it is mandatory to obtain an Employment Permit beforehand.

Failure to properly understand the procedures and conditions can result in fines, employment restrictions, or even criminal penalties.

Below, we outline the essential business requirements and explain the concept

and necessity of the Employment Permit for employers considering hiring foreign workers.

3 Key Business Requirements for Hiring Foreign Workers under the E-9 Employment Permit System

To legally hire foreign employees, businesses must satisfy conditions related to industry eligibility, business compliance, and employee quota limits.

1. Industry Restrictions

Not all industries are eligible to hire foreign workers. In particular, for E-9 (non-professional employment) and H-2 (visiting employment) visa holders,

employment is only permitted in specific industries designated by the government.

Examples of Approved Industries

  • Manufacturing: machinery, assembly, metal processing, plastic injection, etc.

  • Construction: architectural and civil engineering work

  • Agriculture/Livestock: crop cultivation, livestock farming

  • Fisheries: aquaculture, offshore fishing

Note: E-9 and H-2 visa holders are not allowed to work in service, office, or professional sectors.

2. Business Requirments

Employers must meet basic compliance standards to hire foreign workers.

Basic Business Conditions

  • Valid business registration

  • Enrolled in the 3 major insurances: National Pension, Health Insurance, and Employment Insurance

  • No outstanding debts (taxes or insurance premiums)

  • Compliant with industrial safety standards

Employers who are not enrolled in the 4 major insurances or who have outstanding payments are not eligible for the permit.

3. Employment Quotas

Hiring foreign workers is only allowed within a certain ratio compared to domestic workers.

Example Quota for Manufacturing Industry

  • If fewer than 5 domestic employees → 1 foreign worker allowed

  • If more than 31 domestic employees → up to 20% of domestic employee count

👉 Additional Requirements
- Employers must prove efforts to hire domestic workers for at least three months before hiring a foreign worker (e.g., job postings, interview records).
- Large enterprises are not eligible. Only SMEs can apply for an Employment Permit.

SME criteria for manufacturing: fewer than 300 full-time workers, less than 8 billion KRW in capital

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What Is the Employment Permit System (EPS), and Why Is the Permit Important?

The Employment Permit System (EPS) allows businesses to legally hire foreign workers

by receiving prior approval from the Ministry of Employment and Labor. Upon approval, the employer receives an Employment Permit document.

🛂 When Is a Permit Required?

The permit is mandatory for the following visa types:

✔E-9 (Non-professional Employment)

✔H-2 (Visiting Employment)

1) Employment Permit Requirements

✔Valid business registration

✔No unpaid insurance premiums or tax arrears

✔Completion of industrial accident prevention training

✔Minimum 3-month effort to recruit domestic workers

✔Industry must be authorized to hire foreign labor

✔Must not exceed the allowed employee quota

2) Employment Permit Application Process

✔Post job listing for domestic workers (e.g., on WorkNet)

✔Apply for Employment Permit with the Ministry of Employment and Labor

✔Business eligibility review

✔Receive Employment Permit

✔Apply for Certificate of Visa Issuance

✔Foreign worker enters Korea and begins employment

3) Required Documents

✔Copy of business registration

✔Application form for Employment Permit

✔Draft of employment contract

✔Hiring plan and records of domestic recruitment attempts

✅Important Notes About the Employment Permit System

✔The entire process typically takes 1–2 months.

Delays may occur if the business fails to meet any requirement or if documentation is incomplete.

✔After the foreign worker enters Korea, the employer must:

Register the employment permit

Enroll the worker in the 4 major insurances

The worker must: Complete job training, Undergo a health check, Obtain a foreign resident registration card
❗Failure to complete these steps can result in the worker being classified as an illegal resident.

✔Employment under this system is not unlimited.

The initial employment period is 3 years, and may be extended by up to 1 year and 10 months,

for a total of 4 years and 10 months if both parties agree.

Need a Custom Visa or Labor Support Service?

HanGuk Visa offers personalized services for

: Personal and corporate visa processing, Translation support, Employment and labor-related solutions.

We go beyond just visa processing — we support foreign workers with:

✔Employment contracts

✔Wage condition reviews

✔Unpaid wage responses

✔Practical legal guidance on labor issues

We provide customized visa solutions tailored to your specific situation.

If you have any questions or need detailed consultation, please feel free to contact us using the information below :)

📞 Tel: 02-3210-1113

✉ KakaoTalk Channel: 한국비자

📣 Instagram: @hanguk_visa

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