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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

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in South Korea

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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.

This guide was last updated on 29 January 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Types of Employment Contracts

  • Fixed-term contracts

    • Generally limited to a maximum duration of 2 years, after which the employee is deemed to be on an open-ended contract if employment continues.

    • Exceptions where fixed-term contracts may exceed 2 years include:

      • Project-based or task-specific work.
      • Temporary replacement of employees who are on leave or secondment.
      • Employment for academic, research, or vocational training purposes.
      • Employment of workers aged 55 and above, as permitted by law.
  • Open-ended (indefinite-term) contracts

Written Statement of Working Conditions

While an employment contract does not need to be in writing to be legally valid, the employer is required to clearly specify and provide key working conditions in writing at the time the employment relationship is established.

The written statement must include, at a minimum:

  • Wages, including wage components, calculation method, payment method, and payment date.
  • Normal working hours.
  • Statutory rest days and holidays, including at least one paid weekly rest day.
  • Paid annual leave.
  • Workplace and job duties, among other essential terms.

If any of the above working conditions are subsequently changed in accordance with applicable laws, collective agreements, or internal employment rules, the employer must provide the updated information in writing, particularly where the employee requests clarification.

Statutory Contributions

Scope of Application: Applicable to employees of private enterprises.

Types Contribution Ceiling / Floor Contribution Base Employee Contribution Employer Contribution
National Pension Scheme

KRW 400,000/month (floor)

KRW 6,370,000/month (ceiling)

 Total Wage 4.75% 4.75%
National Health Insurance

KRW 20,160/month (floor)

KRW 9,183,480/month (ceiling)

 Total Wage 3.595% 3.595%
Long-Term Care Insurance

KRW 2,649/month (floor)

KRW 1,206,709/month (ceiling)

 Amount of National Health Insurance 13.14% 13.14%
Employment Insurance – Total Wage 0.90% 0.9% + 0.25%/0.45%/0.65%/0.85% (determined by the number of employees in the enterprise)
Industrial Accident Compensation Insurance – Total Wage – 0.5% – 18.5% (varies by industry) + 0.06% (for commuting)

Minimum Wage

Effective Date: 1 January 2026.

  • Hourly rate: KRW 10,320
  • Monthly wage: KRW 2,156,880

Public Holidays

The public holidays listed below are national public holidays observed across South Korea. Please refer to official government announcements for the latest updates.

  • New Year’s Day
  • Seollal (3 Days)
  • Independence Movement Day
  • Children’s Day
  • Buddha’s Birthday
  • Local Election Day
  • Memorial Day
  • Liberation Day
  • Chuseok (3 Days)
  • National Foundation Day
  • Hangeul Day
  • Christmas Day

Note: If a statutory holiday falls on a rest day, it shall be carried forward to the next non-statutory working day.

Overtime Compensation on Public Holidays:

Overtime Compensation
1-8 Hours +50%
> 8 Hours +100%
Compensatory Leave The employer may grant compensatory leave in lieu of overtime pay, subject to a written agreement with employee representatives.

Working Hours

Normal Working Hours

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

Working Hours Reduction Programme

Employees may apply for reduced working hours in the following circumstances:

  • To provide care for a family member due to illness, accident, or advanced age
  • To attend to their own health following illness or injury from disease or accident
  • Employees aged 55 or older preparing for retirement
  • To engage in academic research

Programme Details

  • Weekly working hours may be reduced to between 15 and 30 hours.
  • The programme is valid for a maximum of 1 year. Extensions up to 2 years may be granted for justifiable reasons, except for academic research, which cannot be extended.

Daily Rest

  • ≥ 4 hours/day: At least 30 minutes.
  • ≥ 8 hours/day: At least 1 hour.

Weekly Rest Days

  • At least 1 day per week.

Overtime

  • Overtime Restrictions: No more than 12 hours per week.
  • Overtime Compensation:
Total Hours Worked Working Days Weekly Rest Days Public Holidays Night Shift (10PM – 6AM)
1-8 Hours – 50% 50% 50%
> 8 Hours 50% 100% 100% –
Compensatory Leave The employer may grant compensatory leave in lieu of overtime pay, subject to a written agreement with employee representatives.

Exemptions

  • Alternative Working Hour Systems: Employees who meet certain conditions may be allowed to work under alternative systems, including comprehensive/flexible working hours, optional working hours, or free working hours.

  • Extended Overtime for Specific Enterprises: Employers of medium-sized or small-scale industrial enterprises in the following sectors may require employees to work more than 12 hours of overtime per week or adjust rest periods, provided a written agreement with employee representatives is in place:

    • Land transportation and pipeline transportation (excluding scheduled passenger services)
    • Water transportation
    • Air transportation
    • Other transportation-related businesses
    • Healthcare

Leave

Annual Leave

  • Employer Type: Single employer.

  • Eligibility and Duration:

    • Employees with less than 1 year of service or an annual attendance rate below 80% are entitled to N days of annual leave, where N equals the number of months worked.
    • Employees with 1 year of continuous service and an attendance rate of 80% or higher are entitled to 15 days of leave in the first year, with 1 additional day for every subsequent 2 years of continuous service, capped at 25 days.
  • Allowance: 100% of the average daily wage, paid by the employer.

  • Calculation and Expiry:

    • Unused leave expires after 1 year if not taken for reasons outside the employee’s control.
    • Payment for unused leave upon resignation is determined by the employer’s regulations.

Sick Leave

Eligibility, duration, and remuneration are determined by the employer’s internal regulations.

Maternity Leave

  • Eligibility:

    • Female employees who are pregnant or giving birth (with medical certification).
    • Must have worked 180 days with corresponding employment insurance contributions.

  • Duration:

    • Single birth: 90 days (100 days if premature).
    • Multiple births: 120 days.
    • At least half of the leave must be taken post‑childbirth.

  • Allowance:

    • First 60 days (75 days for multiple births) are paid by insurance and supplemented by the employer to reach 100% of average daily wage.
    • Insurance payments may not exceed the statutory pre- and post-natal period.

Other Leave Types

  • Menstrual Leave: Female employees may take 1 day per month upon request; allowance is determined through negotiation.

  • Marriage / Stillbirth Leave

    • Eligibility: Female employees with medical certification.

    • Duration varies by gestational period:

      • <11 weeks: 5 days
      • 12–15 weeks: 10 days
      • 16–21 weeks: 30 days
      • 22–27 weeks: 60 days
      • ≥28 weeks: 90 days
    • Allowance is equivalent to maternity leave.

  • Pre-natal Check-up Leave

    • Pregnant employees may take leave for medical examinations.
    • Duration depends on examination time.
    • Paid at 100% of average daily wage by the employer.

  • Paternity Leave

    • Eligibility: Employees with 180 days of service and insurance contributions whose spouse is giving birth.
    • Duration: 20 days, within 120 days of childbirth, usable in up to 3 installments.
    • Allowance: Paid by insurance and supplemented by the employer to 100% of average daily wage.

  • Parental Leave

    • Eligibility: Employees raising children under 8 years old or in the second grade of primary school or below (including adopted children), with 180 days of service and insurance contributions.
    • Duration: 1 year per child, usable in up to 2 installments, each lasting at least 3 months.

    • Allowance (insurance‑based):

      • 0–6 months: 100% of normal wage
      • After 7 months: 80% of normal wage

  • Infertility Treatment Leave

    • Employees undergoing treatments such as IVF or artificial insemination may take 6 days per year.
    • First 2 days: Paid by insurance + supplemented by employer (up to 100% of average daily wage).
    • Remaining 4 days: Unpaid.

  • Family Care Leave

    • Eligibility: Employees with 180 days of service with no other available family members to provide care.
    • Long-Term Care: Caring for spouse, parent, grandparent, child, grandchild, or spouse’s parent for illness, injury, or age-related needs. Duration: 90 days/year, usable in multiples of 30 days.
    • Short-Term Care for Young Children: Duration: 10 days/year (single parents may receive up to 25 days/year).
    • Short-term leave counts toward the total family care leave entitlement.

Termination and Compensation

Notice Period

Conditions for Employee’s Unilateral Termination Notice Period
The employer requires the employee to perform work not agreed under the employment contract Effective upon the employer’s receipt of the termination notice
The employment term exceeds 3 years, or is agreed for the lifetime of one party or a third party 3 months (termination takes effect three months after the employer receives the termination notice), exercisable after three years from the commencement of employment
The employment term is not specified 1 month (termination takes effect 1 month after the employer receives the termination notice; where remuneration is paid on a monthly, weekly, or other periodic basis, termination takes effect at the end of the relevant settlement period following receipt of the notice)
The employer is declared bankrupt, regardless of any agreed employment term Effective upon receipt of the notice by the employer or bankruptcy administrator; neither party may claim compensation for losses arising from the termination
The employer transfers its contractual rights to a third party without the employee’s consent Effective upon the employer’s receipt of the termination notice
Conditions for Employer’s Unilateral Termination Notice Period
Dismissal for Managerial or Operational Reasons (Urgent business necessity, e.g. restructuring, merger, acquisition to prevent serious business deterioration)

At least 50 days before the intended dismissal date, the employer must notify the labour union (or a representative of the majority of employees) of:

  • Measures taken to avoid dismissal
  • Criteria for selecting employees
  • Timing and reasons for dismissal
  • Method, conditions, period, date, location, and number of employees affected
General Dismissal (Including dismissal for work-related or disciplinary reasons)
  • Written notice stating the reason and effective date of dismissal must be given at least 30 days in advance.
  • If 30 days’ notice is not provided, the employer must pay at least 30 days’ ordinary wages in lieu of notice.
Exceptions to 30-Day Notice Requirement

Notice is not required where:

  • The employee has less than 3 months’ continuous service
  • Business continuation is impossible due to natural disasters, accidents, or other unavoidable circumstances
  • The employee intentionally causes serious operational disruption or property damage, and the grounds fall within those prescribed by the Ministry of Employment and Labour.

Severance Pay

  • Applicable to employees who have worked for the same employer for at least one year and whose average weekly working hours are not less than 15 hours over a four-week period.
  • Minimum entitlement: 30 days’ average wage × number of years of continuous service.
  • The employer (or its trustee) must pay severance pay within 14 days of the employee’s resignation or retirement. Payment may be deferred by mutual agreement where special circumstances apply.

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.

Stay up to date with the latest employment regulations.

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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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