If you obtain unemployment benefit (job-seeking benefit) in Korea by deception or other fraud, you repay it and pay a surcharge on top. Article 62 of the Employment Insurance Act caps the surcharge at 2 times the amount, or 5 times with employer collusion, and Enforcement Rule Art. 105 (amended 1 July 2026) sets the actual rates by the number of restrictions in 10 years: 100%, 150%, 200%, or 300%, 400%, 500% with collusion. Enter the amount and the ground to see the repayment, surcharge, benefit stop, bar on new claims and penalty.
1. Surcharge = 1x to 2x the amount (under 3 times in 10 years 100%, 3–4 times 150%, 5+ 200%).
2. With the employer: 3x to 5x, and the employer is jointly liable.
3. A first unreported job during the period: repay and lose only that period, and the surcharge may be waived.
Put simply (our summary of the table below): fewer than 3 times in 10 years means 100%, 3 or 4 times means 150%, and 5 or more means 200%.
Calculator
Updates as you type. Enter the amount found to have been obtained by fraud. Surcharge = amount × rate (100/150/200%, or 300/400/500% with employer collusion, by the number of restrictions in 10 years) × any reduction; won below 1 dropped (our method). A waiver “may” be granted; the job centre decides. For collusion cases the Rule counts only collusion restrictions; we use one count for both.
The provisions
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Employment Insurance Act Art. 62(1) | The job centre may order a person who obtained job-seeking benefit by deception or other fraud to repay all or part of it. | Scope set by Rule Art. 104 |
| Art. 62(2) | When ordering repayment, it may also collect up to 2 times the amount obtained; up to 5 times where there was collusion with the employer (including agents and staff). | Collusion = the fraud includes the employer’s false report or certificate |
| Art. 62(3) | Where there was collusion, the employer is jointly liable for repayment and surcharge. | The firm pays too |
| Art. 61(1)–(2) | No benefit from the day of the fraud. But for Decree grounds such as failing to report or misreporting under Art. 47, only that recognition period; from the second time, para. (1). | Decree grounds = Decree Art. 80 |
| Decree Art. 80 | (i) not reporting work done during the period, or misreporting it; (ii) misreporting job-search activity | The two common cases |
The rate table — Rule Art. 105
| Restrictions in 10 years (incl. this one) | No collusion (Art. 105(1)) | Employer collusion (Art. 105(2)) |
|---|---|---|
| Under 3 | 100% | 300% |
| 3 to under 5 | 150% | 400% |
| 5 or more | 200% | 500% |
The count is the number of restrictions in the 10 years back from the day benefit was received, including the one behind this surcharge; the collusion table counts collusion restrictions only. Para. (3) multiplies again for reductions: 30% where a day worker exceeded the working-day limit by 3 days or less, or a construction day worker actually worked 3 days or less in the 14-day window; otherwise 60% for full cooperation plus a written pledge to pay at once. Para. (4) says the surcharge may be waived for a self-report before any inquiry, a first Decree Art. 80 case, or severe hardship.
Four sums — our example
| Example (ours, 1 million won) | Repayment + surcharge (our sum) | Worth noting (ours) |
|---|---|---|
| False reason for leaving, first time | 1,000,000 + 1,000,000 = 2,000,000 won | No benefit from that day on |
| Same, third time in 10 years | 1,000,000 + 1,500,000 = 2,500,000 won | New claims barred for 1 year |
| Collusion with the employer, first time | 1,000,000 + 3,000,000 = 4,000,000 won | With the 60% reduction the surcharge is 1,800,000 |
| Day worker over by 3 days or less | Surcharge 300,000 (1,000,000 × 100% × 30%) | A first unreported job may be waived |
Benefit stops and new claims
Art. 61(5) bars benefit under a new entitlement, for up to 3 years, for someone denied benefit 3 or more times in 10 years, and Decree Art. 80-2 sets the bar: 1 year for 3 times, 2 years for 4, 3 years for 5 or more. Art. 61(3)–(4) treat benefit lost through fraud as received when Art. 50(3)–(4) and Art. 63(2) are applied.
Penalties — Art. 116
Obtaining benefit by fraud carries up to 3 years’ imprisonment or a fine of up to 30 million won; with collusion, the recipient and the employer each face up to 5 years or 50 million won. This is separate from repayment and surcharge.
Unemployment is recognised every 1 to 4 weeks, and any day worked in between must be reported. The claim steps are in how to apply for unemployment benefit; liability for a false separation reason is in our separation code checker.
Checklist
- ☐ Report even one day of work in the period
- ☐ List only job-search activity you actually did
- ☐ Noticed a mistake? Self-report before any inquiry — narrower repayment, possible waiver
- ☐ Got an order? Check the reductions (60% with a payment pledge) and waivers
Questions that remain
Is it fraud if I did not know?
The provisions turn on “deception or other fraud”. Where benefit was simply paid in error to someone entitled, Art. 62(4) provides for repayment only. The surcharge in para. (2) attaches to orders “under para. (1)”, so we read it as not applying to errors (our reading).
Can next month’s benefit be used to repay?
Art. 62(5) allows benefit still due to be set off against repayment and surcharge.
Sources
- Korean law database (law.go.kr) — Employment Insurance Act Arts. 47, 61, 62, 116 — source (current text, effective 18 September 2026, Act No. 21473; checked 28 October 2026). The duty to report work, benefit stops (from the day, one period only, 3 times in 10 years), repayment orders, the 2x and 5x surcharge caps, joint liability, set-off, penalties.
- Korean law database — Employment Insurance Act Enforcement Decree Arts. 80, 80-2 — source (effective 18 September 2026, Decree No. 36588; checked 28 October 2026). The two milder grounds; the 1/2/3-year bar.
- Korean law database — Enforcement Rule Arts. 104, 105 — source (effective 18 September 2026, Ministry of Employment and Labor Ordinance No. 479; checked 28 October 2026). Repayment scope, the surcharge rate tables (read from the alt text of the table images), 30% and 60% reductions, waivers.
- Not read. Work24 guidance on fraud, case law, order forms.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Your job centre — the order amounts; asking for a reduction or waiver.
- Work24 — how to report work at recognition.
Written on 28 October 2026. The content is from the source; the glosses are ours.
