Business Expense Reimbursement in Korea: What Foreign Employees Should Keep and Submit

Foreign employees working in Korea may pay for a taxi, client meal, business trip, office supply, software subscription, or work-related delivery and expect the company to reimburse the cost later. The process can become confusing when the employer asks for a Korean card receipt, cash receipt, tax invoice, trip report, approval message, or proof that the payment was genuinely business-related.

A bank transfer or card statement proves that money moved, but it may not contain enough information for the company’s accounting process. The safest approach is to learn the employer’s reimbursement policy before spending personal money.

Reimbursement is different from salary

A reimbursement returns money that an employee spent for an approved business purpose. It should be distinguished from:

• Salary
• Allowance
• Bonus
• Per diem
• Overtime payment
• Commission
• Severance
• Personal tax deduction

For example, a fixed monthly transportation allowance may be paid regardless of the employee’s actual commuting or taxi costs. Reimbursement generally requires evidence of a specific approved expense.

Do not describe a personal purchase as a business expense simply because it was made during working hours.

Ask for the policy before spending

Companies may have different rules for the same type of cost. Before paying, confirm:

1. Whether approval is required
2. Maximum amount
3. Accepted payment method
4. Required evidence
5. Submission deadline
6. Reimbursement date
7. Currency conversion method
8. Treatment of tips or service charges
9. Whether personal card use is allowed
10. Who approves the claim

A manager saying, “Buy it and we will handle it later,” may not be enough when the finance department applies a formal rule. Request approval through email, company messenger, or the expense system when the amount is significant.

The ordinary receipt is important

A receipt can show:

• Merchant
• Date
• Time
• Purchased items
• Total amount
• Tax
• Payment method

An itemized receipt is more useful than a card approval slip showing only the total. For a client meal, the company may also ask for the purpose, attendees, and client organization. For equipment, the receipt may need to show the exact product rather than a general store name.

Photograph paper receipts immediately. Thermal paper can fade, become damaged, or be lost.

Card receipts and cash receipts

When paying by Korean credit or check card, the payment creates an electronic card record. The company may still require the store receipt or card sales slip. When paying cash, ask what proof the employer accepts. Possible evidence may include:

• Cash receipt
• Itemized paper receipt
• Merchant-issued invoice
• Internal confirmation
• Business expense evidence linked to the company
• Payment acknowledgment

Do not provide your personal tax-deduction phone number for a company expense without checking the company’s process. A company may need documentation connected to its business registration or accounting system instead.

Tax invoices

A Korean business may request an electronic tax invoice for certain purchases from another registered business. Employees should not assume that every shop, taxi, restaurant, freelancer, or overseas service can issue one. Before buying a high-value service, ask the finance team:

• Is an ordinary receipt sufficient?
• Does the supplier need the company registration certificate?
• Must a tax invoice be issued?
• Which company email should receive it?
• What supply date should be used?
• Is the quoted price inclusive of VAT?

Do not give the company’s registration information to an unknown seller without authorization.

Taxi and transportation expenses

Taxi reimbursement may require more than a payment screenshot. The company may ask for:

• Taxi receipt
• Departure and arrival locations
• Business purpose
• Date and time
• Reason public transportation was not used
• Late-night work approval
• Client or project name

For train, bus, ferry, or flight expenses, keep both the booking confirmation and proof of payment. A boarding pass or ticket alone may not show the amount paid. A card statement alone may not show who traveled. When a ticket is canceled, submit both the original payment and refund evidence.

Client meals

Client meals can involve stricter documentation because the company must distinguish business entertainment from personal dining. Record:

• Restaurant
• Date
• Total
• Number of attendees
• Names or organizations
• Business purpose
• Approving manager
• Alcohol or additional service charges when relevant

Do not wait several weeks to remember who attended. A photo of the receipt with a short written note saved on the same day is more reliable. If the company has a per-person limit, confirm whether tax and service charges are included in that limit.

Business travel

A business trip may involve transportation, accommodation, meals, local transit, baggage, conference fees, roaming, and client expenses. Ask whether the company uses:

• Actual-cost reimbursement
• Fixed per diem
• Company-booked travel
• Corporate card
• Advance payment
• Combination of methods

A per diem may replace reimbursement for certain meals or daily costs. Claiming both without permission can create a duplicate expense. Before departure, request a written explanation of what is covered.

Accommodation

Hotel documentation may include:

• Booking confirmation
• Final hotel invoice
• Proof of payment
• Guest name
• Stay dates
• Room rate
• Taxes
• Business-trip approval

The original booking price may differ from the final amount because of currency changes, deposits, local taxes, or added services. Personal expenses such as minibar items, entertainment, or an upgraded room may not be reimbursable. Ask the hotel to separate personal and business charges when possible.

Overseas expenses

Foreign-currency expenses require additional records. Keep:

• Original receipt
• Currency
• Local amount
• Korean won card charge
• Exchange rate
• Card fee
• Payment date
• Refund record
• Business purpose

The company may reimburse based on the card statement, an official exchange rate, or an internal rate. Confirm the method before choosing whether to pay in local currency or Korean won. Dynamic currency conversion can produce a different exchange result from ordinary card conversion.

Software and online subscriptions

Employees sometimes subscribe to design tools, cloud services, research databases, or communication software using a personal card. Before doing so, confirm:

• Whether the company already has an account
• Who owns the subscription
• Whether auto-renewal is allowed
• Billing currency
• Cancellation responsibility
• Data ownership
• Receipt format
• Whether the account must use a company email

A subscription created under a personal account can become difficult to transfer when the employee leaves. The company may prefer to purchase it directly.

Office supplies and equipment

For monitors, keyboards, furniture, storage devices, or other equipment, ask who owns the item after reimbursement. A reimbursed purchase may become company property. Confirm:

• Approved model
• Budget
• Delivery address
• Warranty holder
• Asset-registration requirement
• Return requirement after resignation
• Repair responsibility
• Personal use restrictions

Do not dispose of reimbursed equipment or take it home permanently without checking the company’s asset policy.

Submission deadlines

Expense claims often have monthly, quarterly, or project-based deadlines. Late submission can cause:

• Delayed payment
• Rejection
• Closed accounting period
• Missing tax documentation
• Manager approval problems
• Budget mismatch

Submit expenses as soon as the trip or purchase is complete. Create a recurring routine for scanning receipts, naming files, and entering the business purpose.

A practical file-naming system

Use a consistent format such as: Date – merchant – amount – project For example:

2026-07-15 – taxi – 24,000 KRW – client meeting Store the receipt image, approval, and explanation together. Do not upload personal bank statements containing unrelated transactions when a single payment screenshot or receipt is sufficient.

Protect sensitive information before sharing documents.

Reimbursement after resignation

Before leaving the company, submit every outstanding expense and confirm the payment date. Keep:

• Claim number
• Approval status
• Receipt copies
• Final reimbursement calculation
• Payment confirmation
• Finance contact

Do not assume the expense will be included automatically with the final salary. Ask whether the company will pay the reimbursement separately and whether access to the expense system will end immediately.

Common mistakes

Foreign employees often:

• Lose paper receipts
• Submit only a card statement
• Spend before approval
• Miss the deadline
• Claim a personal expense
• Forget to record attendees
• Use the wrong company information
• Submit both per diem and actual meal cost
• Ignore refunds
• Create personal subscriptions for company software
• Leave the company before claims are complete

Most of these problems can be prevented by checking the rules before payment.

Quick Summary

• Business reimbursement is separate from salary and usually requires evidence of a specific approved expense.
• Keep itemized receipts, payment proof, business purpose, and approval records.
• Client meals, travel, equipment, software, and foreign-currency costs may follow different rules.
• Submit claims promptly and confirm all unpaid expenses before leaving the company.