Leaving Korea Checklist: Pension Refund, Deposit & Taxes

The Timeline

Step-by-Step Guide

1. National Pension Refund (국민연금 반환일시금)

This is often the biggest amount you’ll recover. If you’ve been paying into the National Pension Service (NPS), you’re entitled to a lump-sum refund when you leave Korea permanently.

Who qualifies: Any foreigner who paid into NPS and is leaving Korea (unless your country has a social security agreement with Korea that transfers pension credits — check the reciprocity table below).

Reciprocity Country Table

Countries with bilateral social security agreements determine whether you get a lump-sum refund or a pension credit transfer. This matters — if your country is in the “transfer only” column, you cannot get cash back.

Important: Even if your country has a transfer agreement, the transfer only applies to the pension credits themselves. You do NOT lose the money — it counts toward retirement benefits in your home country. Contact your home country’s social security agency to confirm they will accept the Korean credits.

How Much You Get Back — Calculation Examples

The lump-sum refund equals: Your contributions + Employer’s matching contributions + Accrued interest

NPS contribution rate: 9% of monthly salary (4.5% employee + 4.5% employer). Both portions are refunded.

Interest rates vary year to year. These are estimates based on recent NPS rates (~1.5-2.0% annually on accumulated balance). Your actual refund may differ.

Tax on refund: A withholding tax is deducted at source. The rate depends on your total contribution period and amount. Expect roughly 5-15% deducted. You will receive the net amount.

3 Ways to Claim Your Refund

Option A — Apply before you leave (recommended):

1. Visit your local NPS office with passport, ARC, bank account details
2. Fill out the Lump-sum Refund Application (반환일시금 청구서)
3. Provide either a Korean bank account OR overseas bank details (SWIFT code, account number, bank name/address)
4. Refund is processed after your departure is confirmed via immigration records
5. Deposited within 2-4 weeks of confirmed departure

Option B — Apply online after you leave:

1. Go to nps.or.kr > English > Lump-sum Refund
2. Submit scanned copies of: passport (photo page + departure stamp), completed application form, overseas bank account details
3. Email submission also accepted: nps_eng@nps.or.kr
4. Processing: 2-4 weeks after NPS receives complete documents

Option C — Apply through a Korean embassy:

1. Visit the Korean embassy or consulate in your home country
2. Bring: passport, copy of ARC (if you kept one), overseas bank details, completed NPS application form (available at embassy or downloadable from nps.or.kr)
3. The embassy forwards your application to NPS
4. Processing: 3-6 weeks (longer due to embassy relay time)

Required Documents (All Methods)

Common Rejection Reasons

1. Name mismatch between passport and NPS records (middle name differences, transliteration issues). Solution: visit NPS before departure to verify your name on file.
2. Country has a transfer agreement — you applied for lump-sum but your country is in the reciprocity list. Solution: contact your home country’s pension authority instead.
3. Incomplete bank details — missing SWIFT code, wrong account number. Solution: double-check with your bank before submitting.
4. Departure not confirmed — NPS checks immigration records. If you applied before leaving, the refund won’t process until departure is confirmed. This is normal, not a rejection.
5. Still showing as employed in NPS system — your employer hasn’t reported your termination. Solution: ask HR to file the employment termination report (자격상실신고) with NPS before your last day.

2. Health Insurance (NHIS) Settlement

If employed: Your employer handles NHIS cancellation when you officially resign. Your coverage ends on your last day of employment. Verify with HR that this is done.

If self-enrolled: Visit your local NHIS branch or call 1577-1000 to cancel. Bring your ARC. You may have a small final bill or refund depending on your payment cycle.

Overpayment refund: If you’ve prepaid, NHIS will refund the difference to your Korean bank account. Keep your account open until this clears.

3. Tax Settlement (세금 정산)

Employed Workers — Standard Process

Your employer performs year-end tax settlement (연말정산) as part of your final paycheck. This applies even if you leave mid-year.

Questions to ask HR before your last day:

1. Has my final tax settlement been processed?
2. Will I receive a withholding tax receipt (원천징수영수증)? — You need this for home country tax filing.
3. Is any tax refund owed to me? When and how will it be paid?
4. Have all deductions been correctly applied (pension, health insurance, housing)?
5. Will you file my departure tax settlement with the NTS, or do I need to do it myself?
6. Can I get the settlement documents in English?

Mid-Year Departure Process

If you leave before December 31, your employer must perform a special year-end settlement (중도퇴사 연말정산) for the months you worked:

1. Your employer calculates total income from January 1 to your last working day
2. They apply all eligible deductions for that period
3. The difference between tax already withheld and the correct amount results in either a refund or additional payment
4. This is processed with your final paycheck or within 30 days of departure

If your employer doesn’t handle it (rare but possible with small companies): Visit your district tax office (세무서) or file through Hometax (hometax.go.kr) before departure. Bring your ARC, passport, and most recent pay stubs.

Freelancers / Self-Employed

If you earned income outside of standard employment (프리랜서, 사업소득), you must file independently:

1. Go to Hometax (hometax.go.kr) or visit your district 세무서
2. File a comprehensive income tax return (종합소득세 신고) for the current year up to your departure date
3. Required documents: ARC, passport, income records (계약서, 세금계산서, bank statements showing payments received), expense receipts for deductions
4. Deadline: You should file before departure. If you cannot, you can appoint a tax representative (세무대리인) to file on your behalf after you leave.
5. Consider hiring a 세무사 (tax accountant) — fees range from 100,000-300,000 KRW for a straightforward filing. Worth it if your income situation is complex.

Tax Refund Timeline

Keep your Korean bank account open until all tax refunds clear. If you must close it before then, provide overseas bank details to your employer and/or the tax office.

4. Housing Deposit Recovery (보증금 반환)

This is the #1 source of stress for departing foreigners. For background on Korea’s deposit system and your legal protections, see our Jeonse vs Wolse guide.

Timeline:

• Notify your landlord in writing at least 30-60 days before move-out (check your contract for the exact notice period)
• The landlord is legally required to return your deposit on or before your move-out date
• In practice, landlords often delay until a new tenant is found

내용증명 (Certified Mail) Writing Guide

Sending 내용증명 through the post office creates a legally recognized record of your notice. This is critical if you end up in a dispute.

What to include in your 내용증명:

1. Your name and ARC number (sender information)
2. Landlord’s name and registered address (from your lease contract)
3. Property address (the apartment you are renting)
4. Lease contract date and deposit amount (“On [date], I signed a lease for [address] with a deposit of [amount] KRW”)
5. Move-out date (“I will vacate the property on [date]”)
6. Demand for deposit return (“Please return the full deposit of [amount] KRW to [bank name, account number] by [date]”)
7. Consequences of non-return (“If the deposit is not returned by the stated date, I will pursue legal remedies including filing with the court”)
8. Date and your signature

How to send: Visit any post office (우체국), tell the clerk you want to send 내용증명. They will provide the form. You write 3 copies (one for you, one for the recipient, one for the post office to keep). Cost: ~3,000-5,000 KRW. Keep your receipt — it proves when the notice was sent and received.

Tip: You can write it in Korean or English. Korean is better for legal purposes. If your Korean isn’t strong enough, use a template (search “내용증명 양식 보증금” online) or ask a Korean-speaking friend to help.

Legal Deduction Rules

Landlords can legally deduct from your deposit only for specific reasons. Anything beyond this is disputable.

Protect yourself at move-out:

• Take timestamped photos/video of every room on move-out day
• Do a walkthrough with the landlord and agree on any deductions in writing
• Get a signed receipt (영수증) for the returned deposit amount
• If you disagree with deductions, state so in writing and dispute later

Small Claims Court Step-by-Step (소액사건)

If the landlord won’t return your deposit, small claims court is faster and cheaper than you think. No lawyer required for deposits under 30,000,000 KRW.

1. Send 내용증명 first demanding return within 14 days. This is your evidence of good faith.
2. Gather documents: lease contract, 내용증명 receipt, bank transfer records showing deposit payment, photos of apartment condition, any communication with landlord (KakaoTalk messages are valid evidence).
3. File at the district court (지방법원) where the property is located. Ask for 소액사건 (small claims). Filing fee: ~10,000-50,000 KRW depending on the amount claimed.
4. Submit your claim form (소장) — the court clerk can help you fill it out. Include: your claim amount, the facts, and your evidence.
5. Hearing date: Usually scheduled 2-4 weeks after filing. You must attend (or send a representative with 위임장).
6. At the hearing: Present your evidence. The judge will often try to mediate a settlement first. Most cases are resolved in 1-2 hearings.
7. Judgment: If the court rules in your favor, the landlord must pay. If they don’t, you can apply for compulsory enforcement (강제집행).

Timeline: From filing to resolution, expect 1-3 months. If you’re leaving Korea before it’s resolved, appoint a representative (below).

What to Do If the Landlord Is Unreachable

This happens more than you’d think — landlord doesn’t answer calls, changed number, or is overseas.

1. Send 내용증명 to the registered address on your lease. Even if they don’t pick it up, the post office record proves you sent it.
2. Check the property registry (등기부등본) at the district office or online via iros.go.kr. This shows the legal owner’s name and address. Sometimes the “landlord” you dealt with isn’t the actual owner.
3. Contact the real estate agent (부동산) who brokered your lease. They may have updated contact information.
4. File with the court even without contact. The court can serve notice on your behalf through public notice (공시송달) if the landlord cannot be located.
5. Call 1345 (foreigner helpline) and 132 (legal aid) for interpretation and guidance specific to your situation.

If you’re leaving Korea before resolution:

• Appoint a trusted person (friend, colleague) with a 위임장 (power of attorney) to handle it on your behalf
• The 위임장 should be notarized (공증) at a 법무사 office — cost ~30,000-50,000 KRW
• Or arrange for bank transfer to your overseas account and get written confirmation from the landlord
• Consider hiring a 법무사 (judicial scrivener) to manage the court process — fees typically 200,000-500,000 KRW

See also: housing/jeonse-wolse.md for deposit protection details

5. Bank Account

Options:

• Keep it open (recommended if awaiting pension refund, tax refund, or deposit return). Most Korean banks allow accounts to remain open after departure, but some features (online banking, transfers) may stop working without a Korean phone number. For details on managing your account, see our bank account guide.
• Close it if all refunds are settled. Visit your branch with ARC and passport. Transfer remaining balance overseas first via wire transfer or Wise.
• Convert to overseas-accessible account: Some banks (Woori, KEB Hana) offer overseas remittance-friendly setups. Ask at the branch before you leave.

Transfer Method Comparison

When moving money out of Korea, your choice of method significantly affects cost and speed.

Regulatory note: Transfers over $10,000 USD equivalent are reported to the Financial Supervisory Service (금융감독원). This is routine and not a problem. You do NOT need to justify it, but keep records. As of January 2026, the annual documentation-free limit is $100,000 across all financial institutions.

Auto-Payment Cancellation Checklist

Before closing your account, cancel ALL automatic payments (자동이체) linked to it. Missing even one can cause failed payments, fees, and complications.

How to check: In your bank app, look for 자동이체 관리 (automatic transfer management) to see all active auto-payments. Cancel each one individually.

6. Phone Contract

Postpaid plan (후불제):

• Visit your carrier’s store (SK, KT, LG U+) with ARC and passport
• Pay any remaining balance and early termination fee (위약금) if within contract period
• Termination fees can be 100,000-300,000 KRW depending on remaining months

Prepaid plan (선불제):

• Usually no cancellation needed — it expires automatically
• Contact your MVNO (Chingu, etc.) to confirm

Keep your Korean number temporarily: Some MVNOs allow you to keep a number active for a few months on a minimal plan. Useful if you still need Korean SMS verification for bank apps.

7. Alien Registration (외국인등록)

At the airport on departure day:

• You do NOT need to visit immigration beforehand if leaving permanently
• At airport immigration, inform the officer you are departing permanently
• Surrender your ARC (Residence Card) at HiKorea or at the airport — they will collect it
• Your departure is recorded, which triggers NPS refund processing

If you plan to return to Korea later: You can keep your ARC if your visa is still valid and you’re just traveling temporarily. Only surrender if permanently leaving.

8. Severance Pay (퇴직금)

If you worked for the same employer for 1+ year continuously, you are legally entitled to severance pay. This is not optional or at the employer’s discretion — it is Korean labor law.

Calculation Formula

Severance = (Average daily wage) x 30 x (Total days of continuous employment / 365)

Where average daily wage = total wages earned in the last 3 months / total calendar days in those 3 months.

Worked example:

• Employee worked from March 1, 2024 to March 31, 2026 (2 years, 31 days = 762 days)
• Last 3 months’ salary: 3,000,000 KRW/month x 3 = 9,000,000 KRW
• Calendar days in last 3 months (Jan-Mar 2026): 90 days
• Average daily wage: 9,000,000 / 90 = 100,000 KRW
• Severance = 100,000 x 30 x (762 / 365) = 6,263,014 KRW

What counts as “wages” for the calculation: Base salary, fixed allowances (식대, 교통비 if paid monthly as fixed amounts), regular bonuses if contractually guaranteed. NOT included: irregular bonuses, overtime that varies month to month, one-time payments.

What Counts as Continuous Employment

When Paid

Within 14 days of your last working day. This is a legal requirement.

If Your Employer Refuses to Pay

Escalation steps — follow in order:

1. Document everything first: employment contract, pay stubs, bank statements showing salary deposits, any communication about severance. Screenshot KakaoTalk messages.
2. Send a written demand to your employer (email or 내용증명) requesting severance payment within 14 days, citing Article 36 of the Labor Standards Act (근로기준법 제36조).
3. File a complaint at the Ministry of Employment and Labor (고용노동부). Call 1350 or visit your local 고용노동부 지방청. You can file online at minwon.moel.go.kr. The ministry will investigate and order the employer to pay.
4. File a petition with the Labor Relations Commission (노동위원회) if the employer still refuses after the ministry’s order.
5. Civil lawsuit as a last resort. For amounts under 30,000,000 KRW, use small claims court (소액사건). Filing fee: ~10,000-50,000 KRW. No lawyer needed.

Timeline: Steps 1-3 typically resolve the issue within 1-3 months. Most employers pay once the 고용노동부 gets involved — the penalties for non-payment include fines and potential criminal charges.

If you’re leaving Korea before resolution: Appoint a representative with 위임장 (power of attorney) and provide the 고용노동부 with your overseas contact information. The process can continue after you leave.

9. Shipping & Moving

Options for sending belongings home:

Customs by Destination Country

Customs regulations vary significantly. Check your destination country’s rules before shipping.

Prohibited / Restricted Items (Korea Outbound)

Do not ship these from Korea:

• Korean cultural property (문화재) — antiques over 50 years old need export approval from the Cultural Heritage Administration
• Counterfeit goods (짝퉁) — bags, watches, clothing. Customs will seize them.
• Prescription medications in large quantities — bring only what’s prescribed for personal use with a doctor’s letter
• Lithium batteries — restrictions on air freight. Check carrier-specific rules.
• Kimchi and fermented foods — many countries prohibit import of fermented/meat-containing food products. Check destination rules.
• Soju and alcohol — duty-free limits vary by country (typically 1-2 liters). Excess incurs duty.

당근마켓 (Karrot) Selling Tips

당근마켓 is the fastest way to sell furniture and items before departure. Active market, items sell within days.

• Post 2-3 weeks before departure. Don’t wait until the last minute — you lose negotiating power.
• Price competitively: Check what similar items sell for. Generally, used furniture sells at 30-50% of purchase price if in good condition.
• Take good photos: Natural lighting, clean background, multiple angles. Show any flaws honestly.
• Write bilingual listings if you’re in an expat-heavy area. Korean title + English description reaches more buyers.
• Hot sellers: Air purifiers, washing machines, refrigerators, desks/chairs, rice cookers, bedding sets. These sell within 24-48 hours if priced right.
• Hard to sell: Mattresses (hygiene concerns), very large furniture (delivery hassle), clothing, opened personal care items.
• For large items you can’t sell: Post as “free” (무료나눔) on 당근마켓. Items get claimed within hours. Better than paying for disposal.
• Alternative platforms: 중고나라 (Jungonara) on Naver Cafe, Facebook Marketplace groups (Seoul Buy/Sell/Trade, Seoul Expat Marketplace).

Emergency Contacts

Common Mistakes

1. Closing bank account too early — then pension refund has nowhere to go
2. Not sending 내용증명 to landlord — verbal notice has no legal weight
3. Forgetting pension refund — some people leave millions of KRW unclaimed
4. Not checking pension reciprocity — applying for lump-sum when your country has a transfer agreement (you won’t get cash)
5. Ignoring phone contract termination fee — it doesn’t go away, and can affect your credit if you return to Korea
6. Not canceling auto-payments before closing bank account — leads to failed payments and potential penalties
7. Shipping prohibited items — customs seizure at destination, no refund on shipping costs
8. Not getting severance calculation in writing — always ask for a written breakdown before agreeing
9. Leaving without tax settlement documents — you may need 원천징수영수증 for home country tax filing
10. Not appointing a representative for unresolved money matters — pension, deposit, severance can all be handled by proxy if you set it up before leaving

Common Questions

Q: Can I claim my pension refund if I’ve already left Korea? A: Yes. You can apply online via nps.or.kr or through a Korean embassy in your home country. You’ll need your passport, ARC number, and overseas bank details. Processing takes 2-6 weeks depending on the method. Many people successfully claim months or even years after departure.

Q: How long can I keep my Korean bank account open after leaving? A: Indefinitely, in theory. Korean banks don’t automatically close accounts when you leave. However, without a Korean phone number, mobile banking and OTP functions will stop working. Some banks may flag the account as dormant after 12 months of no transactions. Visit the branch before departure to ask about maintaining overseas access.

Q: My landlord says I have to find the next tenant before getting my deposit back. Is this legal? A: No. The landlord is legally obligated to return your deposit by the lease end date, regardless of whether a new tenant is found. If they insist, send 내용증명 and reference the relevant clause in the Housing Lease Protection Act (주택임대차보호법). This is one of the most common illegal demands landlords make.

Q: I worked for 11 months. Can I get severance pay? A: No. Korean law requires a minimum of 1 year (365 days) of continuous employment for severance eligibility. If you’re close to the 1-year mark, consider staying until you qualify — the difference of a few weeks could mean 1+ month of salary. Some employers may try to terminate you just before the 1-year mark to avoid severance. If you suspect this, contact the 고용노동부 (1350).

Q: Can I get my pension refund and severance pay deposited to an overseas bank account? A: Pension refund: yes, NPS can deposit to overseas accounts (provide SWIFT code and full bank details). Severance pay: this is paid by your employer, usually to your Korean bank account with your final paycheck. Ask your employer if they can send it overseas, but most will only deposit to a Korean account. Keep your account open.

Q: What if I have unpaid taxes — can I still leave Korea? A: Yes, you can physically leave. However, unpaid tax debt doesn’t disappear. The NTS can pursue collection through international agreements, and it may affect your ability to get a new Korean visa in the future. Settle all tax obligations before departure.

Q: I’m a freelancer and I’m not sure if I owe taxes. What should I do? A: Visit your district 세무서 (tax office) or call 126 (NTS hotline). They can check your tax records. If you received income and tax was withheld at source (3.3% withholding on freelance payments is standard), you may actually be owed a refund after filing. Don’t skip this step — it could mean money back.

Q: How do I ship my belongings if I have more than a few boxes? A: For larger shipments, contact an international moving company. Companies like Koryo International Movers, UniGroup Korea, or Crown Relocations handle door-to-door international moves. Get quotes from at least 3 companies. Sea freight is cheapest for large volumes (expect 500,000-2,000,000 KRW for a partial container, 3,000,000-5,000,000 KRW for a full container). Book 4-6 weeks before departure.

Q: Can I sell items on 당근마켓 without a Korean phone number? A: 당근마켓 requires a Korean phone number for registration. If you’ve already canceled your Korean number, use 중고나라 (Naver Cafe) or Facebook expat groups instead. These don’t require Korean phone verification.

Q: What happens to my Korean credit score when I leave? A: Korea’s credit scoring system (NICE, KCB) tracks your financial history. Unpaid debts, defaulted contracts, and outstanding bills remain on record. If you return to Korea on a new visa, these records can resurface and affect your ability to open bank accounts, sign phone contracts, or rent apartments. Clear all debts before departure.

Sources

Last updated: 2026-04-10 | Sources: National Pension Service (nps.or.kr), NHIS (nhis.or.kr), Korean Immigration (hikorea.go.kr), National Tax Service (nts.go.kr), Ministry of Employment and Labor (moel.go.kr), Korea Legal Aid Corporation (klac.or.kr), Housing Lease Protection Act (주택임대차보호법), Korea Post (epost.go.kr), Wise (wise.com), WireBarley (wirebarley.com), Korea Customs Service (customs.go.kr), r/Living_in_Korea departure threads (2024-2026), Seoul Global Center foreigner consultation records