An employer who hires a foreign national without work-eligible status breaches Article 18(3) of Korea's Immigration Act and faces up to 3 years in prison or a fine of up to KRW 30 million (Article 94(9)). When the immigration office confirms the offense, it may instead notify the employer to pay an administrative criminal fine (Article 102(1)). The base amount depends on the number of workers and how long the violation lasted, starting at KRW 3 million for one worker under three months and rising to KRW 30 million. Separately, the employer can be barred for a period from inviting foreign nationals and from hiring foreign workers.
Key points
- Legal basis: Immigration Act Article 18(3) (ban on hiring) → Article 94(9) (up to 3 years in prison or KRW 30 million)
- Fine schedule (Enforcement Rule, Table 8): KRW 3–11 million for one worker depending on the violation period, up to KRW 30 million as headcount rises
- Company liability: the corporation or business owner is fined as well (Article 99-3(2))
- Side effects: limits on visa-issuance certificates for one or three years (Enforcement Rule Article 17-3) and a three-year hiring restriction (Foreign Workers Employment Act Article 20)
- The fine must be paid within 15 days of the notice, or a criminal complaint follows (Article 105)
1. What penalties does an employer face for hiring a foreigner illegally?
Article 18(1) of the Immigration Act requires a foreign national to hold a status of stay that permits employment before working in Korea. Article 18(3) adds: "No one shall employ a person who does not hold a status of stay under paragraph (1)." An employer who breaks this rule can be sentenced under Article 94(9) to up to 3 years in prison or a fine of up to KRW 30 million.
Closely related conduct is punished separately:
| Conduct | Rule breached | Penalty |
|---|---|---|
| Hiring a foreigner without work status | Art. 18(3) | Art. 94(9) — up to 3 years or KRW 30 million |
| Arranging or soliciting such hiring as a business | Art. 18(4) | Art. 94(10) — same |
| Hiring a foreigner who lacks a permit to change or add a workplace | Art. 21(2) | Art. 95(6) — up to 1 year or KRW 10 million |
| Failing to report a hired foreigner's dismissal, departure or disappearance | Art. 19(1) | Art. 100(1)(1) — administrative fine up to KRW 2 million |
A prosecution for an immigration offense cannot be brought without a complaint from the head of the regional immigration office, and other investigative agencies must hand such cases over to that office (Article 101). Employer cases therefore go through an immigration-office investigation and end in either a fine notice or a criminal complaint.
2. How much is the fine and how is it set?
Base amounts are set by Table 8 of the Immigration Act Enforcement Rule, by headcount and violation period. For one worker:
- Under 3 months: KRW 3 million
- 3 to under 6 months: KRW 5 million
- 6 months to under 1 year: KRW 7 million
- 1 to under 2 years: KRW 9 million
- 2 years or more: KRW 11 million
The amount rises with headcount and reaches KRW 30 million for 50 or more workers regardless of the period. The full schedule is on our immigration fine schedule page.
The base amount is not applied automatically. The head of the office may reduce or increase it by up to one half after weighing age and circumstances, motive and consequences of the violation, ability to pay and number of violations (Enforcement Rule Article 86(2)), and may set a different amount with Ministry approval where unavoidable (Article 86(3)). The Minister of Justice may also waive the fine notice altogether on the same grounds (Act Article 103(2)).
3. Can the company be punished as well?
Yes. When a representative, agent, employee or other staff member of a corporation or individual business commits an Article 94(9) violation in the course of the business, the corporation or individual is fined in addition to the person who did it (Article 99-3(2)). Table 8 contains separate fine amounts for this corporate liability.
The business is not punished if it shows it did not neglect due care and supervision to prevent the violation (proviso to Article 99-3). Internal hiring checks that require staff to verify the residence card and status of stay, and records of manager training, are the kind of material that supports this point.
4. What other consequences follow besides the fine?
Limits on inviting foreign nationals. The Ministry of Justice may refuse to issue Certificates for Confirmation of Visa Issuance to an inviter who breached Article 18(3)–(5) or 21(2), for the following periods (Enforcement Rule Article 17-3(2)):
- 3 years from paying a criminal fine or administrative fine of KRW 5 million or more
- 1 year from paying an amount under KRW 5 million
- 3 years from the end of a prison sentence, or from a suspended sentence becoming final
In both cases the Minister may shorten the period after considering the risk of reoffending, the motive and consequences, and other circumstances. An inviter who failed to make the reports required by Article 19 twice or more in the month before applying is also covered (item 6 of the same paragraph).
Restriction on hiring foreign workers. Under Article 20(1) of the Act on the Employment of Foreign Workers, the employment security office may bar an employer for 3 years from hiring foreign workers if, among other grounds, it hired foreign workers without an employment permit or was punished for violating that Act or the Immigration Act.
If the employer is a foreign national. A foreigner who breaches Article 18 is subject to deportation (Article 46(1)(8)). A foreign business owner caught hiring illegally may therefore face a review of his or her own stay in addition to the fine. A permanent resident (F-5) is not deported unless one of the exceptions in Article 46(2) applies.
5. Are there reports an employer must file after hiring a foreigner?
An employer of a foreign national with work-eligible status must report to the regional immigration office within 15 days when (1) the worker is dismissed, resigns or dies, (2) the worker's whereabouts become unknown, or (3) an important term of the employment contract changes (Article 19(1)). Failing to report can lead to an administrative fine of up to KRW 2 million (Article 100(1)(1)); under Table 2 of the Enforcement Decree, the base amount runs from KRW 100,000 (under 3 months) to KRW 2 million (2 years or more).
For workers covered by the Foreign Workers Employment Act, this report also counts as the report required under Article 17(1) of that Act (Article 19(3)).
6. What happens after the violation is discovered?
- Investigation and summons — Immigration officers may summon and question the person, record the statement, and must read the record back or let the person review it and ask whether anything is wrong (Article 48, applied by Article 102(4)).
- Fine notice — If the offense is confirmed, the office may notify payment of a fine in writing with reasons (Article 102(1)). If the offense appears to deserve imprisonment or heavier punishment, a complaint is filed immediately (Article 102(3)).
- Payment — Pay within 15 days of receiving the notice (Article 105(1)). Once paid as notified, you cannot be punished again for the same case (Article 106).
- Complaint if unpaid — If the fine is not paid in time, the office must file a complaint and the case moves to criminal proceedings (Article 105(2)).
7. What should an employer prepare?
Organizing the facts around the factors that lower or raise the fine (Enforcement Rule Article 86(2)) and the due-care defence (Article 99-3) makes the explanation clear.
- Period and headcount: employment contracts and payroll records — the base amount depends on these, so confirm them exactly.
- Motive: how you checked the residence card and status at hiring, and how the lack of work status was missed
- Care and supervision: hiring-check procedures, manager training, steps taken to prevent a repeat
- Consequences and ability to pay: corrective steps since the violation, business size and finances
- Number of violations: the fact that there is no previous violation, if that is the case
Statements that do not match the record of your interview can hurt you, so include only facts you can confirm.
8. How we can help
- Drafting and submitting written explanations and statements of opinion to the immigration office
- Organizing supporting documents such as contracts and payroll records, and translating foreign-language documents
- Preparing invitation documents for foreign workers after any restriction period ends
Defense in a criminal investigation or trial after a complaint is filed is the work of a lawyer, and acting for you in procedures under labor laws such as the employment permit system is the work of a certified labor consultant. In those cases we will suggest the right professional.
Official sources — statutory text
- Immigration Act Art. 18(3): "No one shall employ a person who does not hold a status of stay under paragraph (1)."
- Immigration Act Art. 94(9): a person "who employs a person who does not hold a status of stay permitting employment, in violation of Article 18(3)" — up to 3 years in prison or KRW 30 million
- Immigration Act Art. 105(1): an immigration offender must pay the fine within 15 days of receiving the notice
- Enforcement Rule Art. 86(2): the fine may be reduced or increased within one half of the base amount, considering age and circumstances, motive and consequences, ability to pay and number of violations
- Fine amounts: Immigration Act Enforcement Rule, Table 8, Criteria for Fines (amended 25 Sep 2020)
Checked against the current statutes on the Korean National Law Information Center on 3 October 2026. English wording is our translation.
Related pages
- Korea immigration fine schedule — by violation type
- Unauthorized employment and immigration consequences
- What is an immigration offense review?
- Out-of-status work — the worker's own immigration review
- What to do after an immigration fine notice
If you have received a fine notice or a summons, check the dates on it first. We can review the remaining deadline and the documents to prepare in a consultation.