Completing Your Teaching Contract in Korea
What to wrap up in your last 60 days — severance, pension refund, final tax return, Residence Card return, housing, and the three visa paths if you are staying on. Built from 20 years of Korvia contract exits.
1 Month
Severance per Year
NPS
Pension Refund
RC
Return at Exit
연말정산
Final Tax
The Last 60 Days
The final two months of a Korean teaching contract are the most administrative of the whole year. Severance pay has to be calculated and confirmed, the National Pension refund has to be filed, the final tax statement (원천징수영수증) has to be collected, your Residence Card has to be returned, your Korean bank account and utilities have to close at the right moment, and — if you are staying on — you have to decide between E-2 renewal, E-2 transfer, or the D-10 job-search visa. Done in the right order, it is 10 hours of work spread across 60 days. Done last-minute, it is a scramble that costs teachers hundreds of thousands of won in lost deposits and missed refunds.
Below is the timeline, the financial wrap-up (severance, pension, tax), the Residence Card + housing steps, and the visa options — everything in one place so you can check off items at the 60, 30, and 7-day marks.
The 60-30-7 Wrap-Up Timeline
Three checkpoints — 60, 30, and 7 days before your final work day. Each checkpoint has a specific set of decisions that depend on the one before. Skipping the 60-day mark compresses the whole schedule and usually costs severance timing or deposit recovery.
60 Days Out
Decide and Notify
- ✓Tell your co-teacher and school admin whether you are renewing or leaving
- ✓If leaving: notify your Korvia recruiter in writing — this starts the paperwork and, if applicable, reference requests
- ✓Check passport expiry — must be valid 6+ months after departure, or you cannot board a flight home
- ✓Update your CV and LinkedIn with your Korean teaching experience while the details are fresh
- ✓If transferring to a new Korean school: request a release letter from your current school
30 Days Out
Wind Down Logistics
- ✓Schedule utility disconnections (electricity, gas, water, internet) for your last day +1 to avoid gaps
- ✓Set your final-month budget — first severance pay usually lands 14 days after your last day, not with the paycheck
- ✓Book your departure flight and confirm baggage allowance for year-end shipments
- ✓If using NPS pension refund: start gathering documents (RC, passport, bank details, flight ticket)
- ✓Ask HR when to close your Korean bank account — too early and you lose the severance deposit route, too late and you pay fees abroad
7 Days Out
Final Handover
- ✓Confirm severance calculation with your co-teacher in writing (exact amount, payment date, bank account)
- ✓Book airport transport — limousine bus or KTX to ICN is cheapest, Korvia can help coordinate
- ✓Collect employment verification letter (재직증명서) and final tax withholding certificate (원천징수영수증)
- ✓Return Residence Card at immigration or at the airport upon exit
- ✓Hand over school keys, laptop, and complete your apartment condition walk-through
Severance Pay — 1 Month per Year of Service
Korean labor law mandates severance pay for any contract of one year or longer. The statutory minimum is 30 days of average wage per year of service — in practice, teachers receive one month's salary per year completed. For an E-2 teacher on a 12-month contract, that means one additional month of salary wired to your Korean bank account within 14 days of your last work day.
What to Confirm in Writing
- ✓Calculation base: your average monthly salary over the final 3 months — ask your co-teacher for the exact figure in KRW
- ✓Payment date: by law, within 14 days of your last work day — usually the next school payroll cycle
- ✓Payment account: confirm the Korean bank account and routing — keep it open until severance lands
- ✓Tax withholding: severance is taxed separately from salary at a favorable rate — the exact take-home is calculated by your school's payroll
- ✓Full contract completion: severance is only owed for contracts of one year or longer — leaving at month 11 forfeits it
Pension Refund (NPS Lump Sum)
The Korean National Pension Service (NPS) takes a ~4.5% contribution from your salary, matched by your school. Teachers from countries with a reciprocal refund treaty — United States, Canada, Australia, and several others — can claim a full lump-sum refund of both your and your employer's contributions when leaving Korea. For a one-year contract, that is typically ₩2.5M–₩5M KRW depending on salary.
Documents You Need
- • Residence Card (RC) — original, returned at exit
- • Passport with E-2 visa sticker
- • Final paystub and employment verification letter
- • Korean bank account info (or foreign bank for wire)
- • Outbound flight ticket (proof of departure)
- • NPS refund application form
How to File
- 1. Visit your local NPS office in your final 1–2 weeks (walk-in OK, appointment preferred)
- 2. Submit the application with all supporting documents
- 3. Nominate the bank account to receive the refund (Korean or foreign)
- 4. Leave Korea — NPS processes after departure is confirmed
- 5. Refund typically arrives 4–8 weeks after submission
Final Tax Return and 원천징수영수증
Korean income tax is withheld monthly from your paycheck. At contract end, your school's payroll prepares a final reconciliation — many teachers receive a small refund if their withheld tax exceeded actual liability once deductions are applied. The key document is the 원천징수영수증 (withholding tax statement) — a one-page form summarizing total salary, tax withheld, and any refund owed.
What to Ask Your School Accountant
- • Request the 원천징수영수증 on or before your last work day
- • Ask whether a final reconciliation refund is owed, and when it will be paid
- • Keep a digital copy — you will need it for your home-country tax return (US FBAR, Canada foreign income, etc.)
- • If you had Korean medical or education deductions, confirm they were applied in the reconciliation
- • Save any year-end tax-credit certificates (donations, housing loan interest if applicable) for your records
Return Your Residence Card at Exit
Korean immigration requires you to return the Residence Card (RC, formerly ARC) when your E-2 visa ends and you leave the country — unless you are converting to another long-term visa like D-10 or a renewed E-2.
- •Where: hand in at the immigration counter at Incheon (ICN) or Gimpo (GMP) when you depart, or at your local immigration office before departure
- •Penalty for failing to return: immigration may flag your record and assess fines on any future Korean visa applications — including tourist re-entry
- •Keep a photo copy: before returning the card, photograph both sides — you may need it for the NPS pension refund and for your home-country tax records
- •If renewing or transferring: do not return the card — immigration endorses the new visa on the existing RC
Housing Wrap-Up
Whether you lived in school-provided housing, a homestay, or your own lease, these four items close the loop cleanly and protect any deposit you paid in.
Utility Disconnection
Electricity (KEPCO), gas (Samchully / local gas co.), water (city utility), and internet (KT / SKT / LG U+) each have separate cancellation calls. Your school HR or housing manager will usually coordinate — confirm dates in writing so you are not billed for the month after departure.
Security Deposit Recovery
If your school required a move-in deposit (typically ₩300,000–₩700,000), request the refund schedule in writing. Deposits tied to damage claims require the condition walk-through to be complete. Expect 1–2 weeks for the refund to hit your Korean bank.
Final Condition Photos
On the day of move-out, photograph every room, appliance, and any pre-existing damage — date-stamped. Send to HR the same day. This is how you protect the deposit against post-departure deductions you cannot dispute from abroad.
Key Return and Mailbox
Return apartment keys, building fob, and any school-issued equipment on your final workday. Update your mailing address at the post office (우체국) so any remaining mail — pension docs, final utility bills — forwards to your home country or a Korean friend.
Visa Options After Your Contract
Three paths if you are not leaving Korea. Each has a different paperwork load and a different set of options at the end.
E-2 Renewal — Same School
Stay with your current school for another year.
The simplest path. Your school requests a contract renewal, you sign a new MOU, and immigration extends your E-2 visa on the existing Residence Card. No new apostille documents needed — your original CBC and degree stay on file. Renewal must be confirmed at least 2 months before your current contract ends. Korvia handles the renewal paperwork end-to-end.
E-2 Visa Extension Guide›E-2 Transfer — New School
Change schools without leaving Korea.
Requires a release letter (이직 동의서 / 계약해지 확인서) from your current school, a new contract from the receiving school, and a visa transfer at immigration within your E-2 validity. Your Residence Card stays — immigration endorses the new employer on it. Most teachers lining up a GEPIK → SMOE or academy → public-school move use this path.
Apply for Your Next Placement›D-10 — Job Search Visa
60-day bridge while you find a new job.
If you do not have a new contract lined up when the E-2 ends, D-10 gives you up to 60 days in Korea as a job seeker. Requires proof of funds, proof of teaching experience, and a job-search plan. Extendable one time. Useful if you are between EPIK intakes or interviewing with academies. Cannot be used to work — you must convert to E-2 once hired.
Items to Ship Home
If you are leaving Korea, Korea Post's international EMS and Sea Post services are the cheapest way to send items home — especially heavier items like bedding, kitchenware, and books that are not worth an airline's overweight fee.
- • EMS air — 3–7 days, ₩50,000–₩150,000 per 10 kg box depending on destination
- • Sea post — 4–8 weeks, ~60% cheaper than EMS for non-urgent items
- • Prohibited items: Korean cosmetics with certain preservatives (check the destination country's customs), foodstuffs, lithium batteries above a threshold
- • Customs forms: declare used personal items as such — keeps the parcel under your home country's duty-free threshold
- • Insurance: EMS includes basic coverage up to ~₩200,000; add supplemental for electronics and gifts
Completing Your Contract — FAQ
Can I extend my contract if my plans change mid-year?
Sometimes, but it depends on your program. EPIK, GEPIK, SMOE, and GOE renewals are handled by the metropolitan office of education and must be confirmed 2 months before the contract ends — no guarantee of a late extension. Private academies are more flexible and can extend month-to-month. If you change your mind after the renewal deadline, your school may say no and you proceed as planned — so decide early and tell HR in writing.
What do I do if my school disputes my severance pay?
Severance (퇴직금) is mandatory under Korean labor law for any contract of one year or longer — it cannot be waived by a clause in your contract. By statute you are owed at least one month of average salary per year of service, paid within 14 days of your last work day. If your school attempts to deny, reduce, or delay severance, contact Korvia first; if unresolved, file a complaint with the Ministry of Employment and Labor (고용노동부 — call 1350 for English support). Korean labor courts regularly side with foreign teachers on severance claims, and the process is free to file.
How long does the NPS pension refund actually take?
Budget 4–8 weeks from submission to deposit. You submit the lump-sum refund application at an NPS office before you leave Korea (or mail it from abroad with notarized documents). The NPS reviews, confirms you are a national of a country with a reciprocal refund treaty (US, Canada, Australia, etc.), and wires the refund to a Korean or foreign bank account you nominate. Teachers who file in their last week in Korea usually receive the refund by the end of their first month home.
Can I come back to Korea on a tourist visa after my E-2 ends?
Yes — most passport holders (US, UK, Canada, Australia, NZ, Ireland, South Africa) receive 30–90 days of visa-free entry as tourists, and your past E-2 visa has no bearing on this. What tourist status cannot do is let you work, teach, or set up long-term accommodation leases. If you return planning to teach again, apply for a fresh E-2 from the overseas Korean consulate before flying in — not at the airport.
Will my school write me a reference or a TEFL verification letter?
Most public-school programs (EPIK, GEPIK, SMOE, GOE) will issue a 재직증명서 (employment verification letter) as standard — it confirms your role, dates, and school name. Personal reference letters are separate: ask your co-teacher or principal directly, and ask at least 30 days before you leave so they have time to draft. For next-stop employers who want English references, provide your co-teacher with a simple template and they will usually sign it. Korvia can also issue a placement verification letter independent of your school.
What happens to my final paycheck if I leave mid-month?
Korean pay cycles usually run 25th to 25th or 30th to 30th, so a mid-month departure results in a partial final paycheck prorated by workdays — which typically lands on the normal pay date, not your last day. Severance is separate and paid within 14 days of your last work day, into your Korean bank account. Keep the account open until both payments are received, then close it once the final transfer clears.
Close This Chapter — Start the Next One
Renewing, transferring, or heading home for a break — Korvia has walked 20 years of teachers through every one of these paths. Severance, pension, tax, and visa status can all land cleanly if you start in the right week.