[Jungbu Ilbo] Law Firm Majung Specializing in Foreign Nationals / Industrial Accident Compensation for Foreign Workers – How the Value of Life Differs Depending on Nationality and Visa Status / By Attorney Minjun Jeong

※ The Foreigners’ Center at Law Firm Majung is committed to protecting the rights of foreigners residing in Korea. ※ Below is an interview with Attorney Minjun Jeong of Law Firm Majung regarding discrimination in industrial accident insurance for foreign workers.  

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[Foreign Workers in Korean Society] Discrimination in the Value of Life Depending on Visa Status and Country of Origin… The Perception of Them as “Temporary Sojourners” Must Change First

-  Jungbu Ilbo, July 4, 2024 — Reporters Yoojin Kim and Jaeyoon Seol     July 2017 — Mr. A, a Chinese national and foreign worker.   While working at a construction site for Company B in Seosan, South Chungcheong Province, the panel he was standing on fell to the ground, causing him to plunge down. One year later, in July 2018, he died as a result of the accident.   The family of Mr. A filed a lawsuit for damages against Company B, but the standard for calculating the compensation they sought was not accepted.   Foreign workers, who fill labor shortages in Korea’s primary and secondary industries that Korean nationals tend to avoid, are being directly exposed to high-risk worksites.   Even when they suffer industrial accidents, they often cannot receive sufficient compensation, leaving injured foreign workers and their bereaved families in deepening distress.   According to reporting by Jungbu Ilbo on July 4, the compensation amounts do not always differ between Korean and foreign workers when an industrial accident occurs.   Article 5, Paragraph 2 of the Industrial Accident Compensation Insurance Act defines “worker” by referencing the definition provided in the Labor Standards Act.   According to the Labor Standards Act, a worker is anyone who provides labor to a business for the purpose of earning wages.   Employers are prohibited from discriminating in employment conditions on the basis of nationality, religion, or social status.   Accordingly, foreign workers—whether legally or illegally employed—are covered by the Industrial Accident Compensation Insurance Act.   Furthermore, even if an employer has not separately reported enrollment in the industrial accident insurance scheme, the worker is still entitled to compensation for damages from an accident.   Labor attorney Minjun Jeong explained: “There is little difference in the amount of compensation under the Industrial Accident Compensation Insurance Act between Korean and foreign workers. This is because the calculation method for the average wage of regular workers—based on the average of the most recent three months’ wages—is applied equally to both.”   The differences in compensation arise in damage lawsuits filed by foreign workers who suffered industrial accidents, specifically in the calculation of lost future income (“loss of earnings”).

• Differences in applying lost future income
• For Koreans: estimated at about 3.2 million KRW per month
• For undocumented migrants from poorer countries: as little as 130,000 KRW per month

Lost future income refers to the earnings a victim could reasonably have expected if the accident had not occurred.   The calculation of lost income varies depending on the visa status of the foreign worker.   If the injured worker has the right to reside permanently in Korea, the same method as for Korean nationals is applied.   However, if the injured worker is undocumented or working outside the permitted scope of their visa, the calculation changes.   For undocumented foreign workers, lost income is based on the expected employment or residence period in Korea. After that period, the calculation is based on the income they would likely earn in their home country.   Attorney Jeong noted: “For Korean workers, lost income is generally calculated at about 3.2 million KRW per month. But for undocumented foreign workers from countries with smaller economies, the figure can be just 1/25 of that.”   He further warned: “The lower the per capita income of the worker’s home country, the more extreme the disparity in calculated lost income becomes.”   This discrepancy between compensation for Korean and foreign workers has sparked mixed reactions.   “It’s natural that they should receive less since they don’t pay taxes.”   “We need a more reasonable calculation method that reflects future realities.”   Citizen Mr. C said: “I think it’s only natural that foreign workers receive less compensation. Koreans have been working here and paying taxes, but foreigners have not.”   In contrast, attorney Jaeho Lee of the Migrant Center “Friend” argued: “I see these differences in calculation methods as discriminatory. The key question should be whether this person will continue working and living in Korea long-term, and whether they have received fair and reasonable compensation.”   He added: “So far, court precedents have viewed foreign workers as people who provide labor for a limited time at necessary sites and then leave. But going forward, this perception must change.”   Source: Jungbu Ilbo  

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  ​Majung offers legal consultations for foreign residents in Korea who need legal assistance. Please contact us at the number below for more detailed advice.​ ​ Majung Law Firm Foreign Center: 02-3143-1158 Online Consultation: https://majungforeign.kr/contact-en   Read the Original Article