For the United States, the agreement applies to Social Security taxes under the retirement, survivors, disability and health insurance (RSDHI) programs (i.e., FICA taxes for employment and SECA taxes for self-employment, including the Medicare portion). Thus, if an individual is exempt from U.S. Social Security coverage under this agreement, neither the employee nor employer share of the FICA tax nor the SECA tax in the case of a self-employed person, has to be paid for any period during which the exemption is effective.

For Korea, the agreement applies to taxes that finance retirement, survivors and disability benefits as well as taxes for the industrial accident program. Consequently, if a worker is exempt from Korean coverage as a result of the agreement, no contributions are due for these programs.