I know a number of guys at KAL who do indeed claim the foreign earned income exemption. They have a residence permit in Korea, but live in the company's hotel when there. When they return to the USA on days off, they come back on a Gen Dec so it is as if they are on a layover even though they are on days off. Their passport is not stamped on entry to the USA. It seems to me that this arrangement could land one in some hot water with the IRS because they do not have residence in Korea, just a residence permit. But it is being done by a lot of people and they are getting away with it so far.