Incheon District Court ordered 31-year-old Park to pay one million won (USD 865) to Hussain, an Indian researcher, for calling him dirty and smelly.
"It is acknowledged that the accused hurled racial abuses, causing the complainant to feel insulted," the court said in a statement.
Owing to absence of S Korean law on racial abuses, prosecutors filed a 'personal insult' charge against Park.
The incident has moved human rights activists to put forward a bill to ban racial abuse of foreigners.
Amnesty international on Oct 2009 reported that despite rules on protection of migrant workers, t migrant workers have to undergo abuse, trafficking fro sexual exploitation and even denied wages.