This report discusses the employment effect of outward FDI in a source country that varies depending on the type of overseas investment (efficiency-seeking, market-seeking, export-platform-seeking. etc.), workers skill level (that is, low-, medium- and high-skilled) and employment status (that is, permanent and temporary). More importantly, it emphasizes the important role of the employment status in determining the effect of outward FDI on domestic employment in a source country. According to the recent study from KIEP, OFDI has no effect on the overall employment of regular workers, while it is positively associated with the overall employment of temporary workers. These results possibly indicate that the MNEs initiating FDI, at least in Korea, prefer to avoid increasing the number of permanent workers by employing temporary workers when they are unsure as to the success of their FDI.