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Global Expansion Guide

South Korea

Manage and pay your employees easily with BIPO in South Korea and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Korean Won (KRW)

employment guide_language

Language

Korean

employment guide_capital

Capital

Seoul

Employer of Record South Korea

Employer Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Other Regulations

Probationary Period

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in South Korea

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  • Global Hiring Guide
  • South Korea

Employer of Record South Korea

Embark on your business expansion in South Korea with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the South Korean market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

Required content in the employment contract:

  • Name and address of the employer and the employee
  • Wage
  • Working hours
  • Leave entitlements: sick leave, annual leave etc.
  • Work location
  • Job description
  • General working conditions

A fixed-term contract can be signed for a maximum of 2 years of length, and then it must be converted to a non-fixed-term contract. Part-time and full-time employees receive equal pay for equal work.

Statutory Contributions

Type Payment Agency Name Employer Contribution Employee Contribution
National Pension National Insurance Bureau

4.5%

Max.: 6,170,000 KRW

Min.: 390,000 KRW

4.5%

Max.: 6,170,000 KRW

Min.: 390,000 KRW
National Health Insurance (Including Long-term Care Insurance) Health Insurance Bureau

3.545% of Total Income

(LTCI=NHI*6.475%)

Max.: 119,625,106 KRW

Min.: 4,240,910 KRW

3.545% of Total Income

(LTCI=NHI*6.475%)

Max.: 119,625,106 KRW

Min.: 4,240,910 KRW
Employment Insurance Employment Insurance Bureau

1.15% – 1.75%

No upper or lower limit

0.90%

No upper or lower limit
Industrial Accident Compensation Insurance Industrial Accident Insurance Institution

Varies by different industries, 0.75-22.65% of total income, all borne by employers

No upper or lower limit

 –
Total of above About 10.4% About 9.4%

Minimum Wage

The statutory minimum wage of South Korea has been adjusted and taken effect from 1st January 2025 as following:

  • Hourly rate: 10,030 KWR per hour
  • Monthly wage: 2,096,270 per month (based on 209 hours, subject to the announcement)

Public Holidays

The Public Holidays in South Korea in 2025 is shown as following. Please refer to the announcement of the government of South Korea.

Holiday Name Date
New Year’s Day 1 January 2025
Seollal 28 January 2025
Seollal 29 January 2025
Seollal 30 January 2025
March 1st Movement Day 1 March 2025
March 1st Movement Day 3 March 2025
Children’s Day / Buddha’s Birthday 5 May 2025
Memorial Day 6 June 2025
Liberation Day 15 August 2025
National Foundation Day 3 October 2025
Chuseok 5 October 2025
Chuseok 6 October 2025
Chuseok 7 October 2025
Hangeul Day 9 October 2025
Christmas Day 25 December 2025

Working Hours

Normal Working Hours

Working hours shall not exceed 8 hours per day, 40 hours a week.

Flexible Working Arrangement

  • Employers may require employees to exceed the standard number of work hours without having to pay overtime. Employers can average the working time between 2 weeks wherein the employee can be asked to work in excess of 40 hours in one specific week and/or in excess of 8 hours on a specific day. Provided, the working hours in any of the 2 weeks cannot exceed 48 hours.
  • According to Article 51 of Labour Standard Act, the flexible working hours can be averaged for a period between two weeks and no more than 3 months. But provided, in this case, the working hours of all employees cannot exceed 52 hours in a week after December 2022.
  • According to the 2018 Amendment of the Labour Standards Law, the working hours of employees under the age of 18 shall not exceed 7 hours per day, and no more than 40 hours per week. With the consent of themselves and their parents, the working hours may be extended by 1 hour per day, up to 6 hours per week.

Rest Time

  • Employer should allow employees a recess of not less than 30 minutes in 4 working hours, or a recess of not less than 1 hour in 8 working hours, during work hours. Employees have no obligation to work during rest time.
  • Usually, this recess will be given to employees as a meal hour, which will be excluded from the actual working hours (with no pay).
  • Employees get one day off per week with pay. The weekly holiday is typically Sunday, but there is no specific requirement that it be.

Night Work

Night working hours are regarded as work between 10:00 pm on one day and 6:00 am the next day. Time off in lieu of night work can be set based on mutual agreement between the employer and the employee.

Overtime

  • Overtime is defined as any number of hours worked in excess of 8 hours per day, 40 hours per week. If the working hours exceed 8 hours per day, it is equivalent to overtime regardless of whether the working time exceeds 40 hours per week. Working hours can be extended to 12 hours per week if an agreement is reached between two parties. Employers may extend working hours with the authorisation of the Minister of Employment and Labour, and with the consent of the employee.

  • Only below five industries allow to be exempted from Maximum 12-hour weekly overtime limit rule, which includes:

    • Land transport (excluding bus companies)
    • Sea transport
    • Air transport
    • Other transport services (e.g. goods delivery)
    • Healthcare industry
  • Time off in lieu can be set instead of overtime payment based on mutual agreement between the employer and the employee.

Other Regulatoins

  • Restriction on minor employees: Not more than seven hours per day, 40 hours per week for employees under 18 years of age. With consent of the employee himself/herself and his/her parents, working hours can be extended one hour per day, 6 hours per week.
  • Reduction of working hours: Parents enrolled with EI for 180 days or more, can apply to reduce his/her normal work hours to 15 to 35 hours per week to take care his/her child(ren).

  • Effective 19th November 2021, employers must provide employees a payslip in written or electronic form when paying their wages, and the payslip must include the following contents:

    • Name of the employee
    • Position
    • Commencement date
    • ID Number
    • Monthly wage
    • Working hours
    • Pay date
    • Overtime hours
    • Total income and details
    • Deductions, calculations and net pay

    Employers who fail to provide payslip to their employees can be subject to heavy penalty.

  • Employer employs 10 or more must prepare the rules of employment regarding the following matters and report such rules to the Minister of Employment and Labor. An employer shall hear the opinion of a labor union or majority of employees with regard to the preparation or alteration of the rules of employment.

Probationary Period

  • No statutory provisions in Soth Korea.
  • Normally it is 3 months in market practice.

Leave

Statutory leaves in South Korea include:

Type Applicable To Details
Paid Annual Leave All Employees employed ≥ 1 year

15-25 days (inclusive of parental leave)

Every employer shall grant any employees who has worked more than 80% of one year a 15-day paid leave entitlement; for any employee who has continuously worked for less than one year or who has worked less than 80% of one year, one day paid leave shall be granted for each month which he/she has continuously worked
Pregnancy and Maternity Leave Female Employees

90 days

100 days for earlier delivery (effective 23rd February 2025)

Effective 22nd October 2024, a period of reduced 2 working hours per day for childcare during pregnancy can be used until 12 weeks and after 32 weeks (rather than the current 12 weeks and 36 weeks)
Breast Feeding Leave Female Employees who have a child aged no more than one year old Two 30-minute nursing periods per day
Paternity Leave Male Employees 20 days (effective 23rd February 2025)
Child Care Leave Employees who have a child aged no more than 12 years old

1.5 years for below people (effective 23rd February 2025):

  • Single parents
  • Parents of a child with a severe disability
  • Where each parent takes more than 3 months of childcare leave
Menstruation Leave Female Employees One day leave per month
Fertility Treatment Leave Female Employees 6 days, first 2 days are paid leave (effective 23rd February 2025)
Family Care Leave All Employees 90 days, at least 30 days per application
Sick Leave All Employees According to doctor’s diagnosis (60% of salary paid)
Military & Training Leave Male Employees According to the government notice
Other Leaves All Employees Leaves must be granted in connection with civic duties, including voting

Termination and Compensation

Notice Period

  • Length of notice is 30 days, or provide a payment in lieu of notice instead.
  • Under some extremely circumstances, employees need to be notified one year in advance.

Compensation

  • According to Employee Retirement Benefit Security Act (ERBSA), the employer must pay the employee a Severance Payment when the employment relationship ended, or establish retirement pension schemes with the employee’s consent and submit details of the plan to the Ministry of Employment and Labour.
  • The compensation for employees who work for the employer at least one year, shall be equal to (30-day average wages * continuous working years). Average wages: is calculated based on wages of the 3 months before end of the employment relationship rather than annual wages.
  • Employers who hire foreign employees in South Korea shall pay 8.3% of their monthly regular wages as of monthly insurance premiums to the insurance company in the form of premiums for overseas maturity insurance, in accordance with Article 13 of the Foreign Employment Act (FEA). According to the provisions of Section 3 of the “Expatriate Abroad Insurance Trust”, the employer who pays such insurance premium is deemed to have joined the setting of the retirement pension scheme conditions stated in Section 1, Article 8 of the Employee Retirement Benefit Security Act(ERBSA), and the foreign employees can reimburse such benefits through the insurance company when their departure timing met the set conditions.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with South Korean regulations.
  • Contributions and Taxes: Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours: We guarantee that your employment practices adhere to South Korea’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with South Korea’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in South Korea

Unlock your growth potential with BIPO’s Employer of Record service in South Korea. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance. From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

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Frequently Asked Questions (FAQ)

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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