Korean Firms Shifted Global Workforce Through 2025
Bilateral agreements saved workers trillions in social security premiums as production moved to the U.S. and Europe.
Updated on Sept. 25, 2026 in Employment
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Between 2016 and 2025, South Korean companies relocated substantial portions of their overseas workforce from China to the United States and Eastern Europe. These shifts were supported by social security agreements that allowed employees to avoid paying duplicate insurance premiums.
Why it matters
The migration of the workforce reflects a strategic expansion of local production in sectors such as semiconductors, batteries, and electric vehicles. By utilizing bilateral agreements, these companies effectively reduced labor costs while maintaining pension coverage for their international staff.
Korean workers saved an estimated 4.3774 trillion won in premiums through agreements that expanded to cover 39 countries by 2025. Meanwhile, foreign workers in South Korea saved 629.6 billion won in insurance premiums over the same decade-long period.
The players
Ministry of Health and Welfare
The South Korean government agency that manages national pension enrollment and tracks international social security agreements for workers.
The details
Companies utilized bilateral social security agreements to prevent employees dispatched abroad from being forced to pay pension contributions in both their home and host countries. As Korean firms built new production facilities for batteries and electric vehicles in the U.S. and Eastern Europe, the number of exempt workers in these regions surged. The Ministry of Health and Welfare tracked these figures to ensure workers maintained domestic pension enrollment despite the geographic shift.
Timeline
2016 served as the baseline year for the social security exemption data.
The number of Korean workers in the U.S. grew to 16,299 in 2022.
By 2023, the number of Korean workers in the U.S. reached 20,787.
The headcount for Korean workers in the U.S. rose to 27,098 in 2024.
Data collection for this workforce shift concluded in 2025.
Money Landscape
The expansion of bilateral social security agreements marks a departure from traditional reliance on single-market manufacturing hubs. This shift reflects a broader trend of Korean companies diversifying production bases to secure supply chains in semiconductors and electric vehicles.
For employees working abroad for Korean firms, these agreements eliminate the double-taxation of social security premiums, effectively increasing take-home pay. Consult with a tax professional to confirm your specific status under current bilateral agreements if you are on an international assignment.
The takeaway
The strategic use of social security agreements allowed Korean companies and their employees to secure over 4 trillion won in combined savings while expanding global operations. Workers stationed internationally should review their company's pension enrollment status to confirm they are taking advantage of these bilateral protections.
Further reading
Learn more about global labor policies and their financial impact in our Employment section.
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