TN 18 (02-01)
RS 02001.980 Self-Employment Rule under the Agreement with Korea
Generally, a work activity that is considered to be self-employment under U.S. Social Security law is also considered to be self-employment under Korean law. In certain cases, however, a person may be engaged in an activity that is considered self-employment by one country and employment by the other country. For example, under U.S. law, ordained ministers and members of the board of directors of a corporation are considered self-employed. Under Korean law they are generally considered employees. The following subsections explain how coverage is determined in each situation.
1. Activity is Self-Employment in Both Countries
If the work activity is considered self-employment by both countries, the worker will be covered only by the country of which he/she is a resident.
2. Activity is Self-Employment in Only One Country
If the work activity is considered self-employment under the laws of one country and employment under the laws of the other country, the worker's coverage is determined as follows:
A worker who is a resident of the country that considers the activity to be self-employment will be covered under the laws of that country.
A worker who is not a resident of the country that considers the activity to be self-employment will have his/her coverage determined under the laws of the other country.