South Korea EOR & PEO

Start hiring in South Korea

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Hire in South Korea

Horizons provides compliance solutions to ensure your business in South Korea operates in line with South Korea labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, South Korea in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as an South Korea Employer of Record, absorb all local employer liabilities. Partnering with our South Korea EOR is the quickest and most cost-effective way to enter the South Korea market.

Note, a South Korea Employer of Record is also known as a South Korea Professional Employer Organization (PEO).

Facts & Stats

stay compliant with South Korea labor laws

Employment Laws

Employment contracts in South Korea

In years gone by, South Korean employment contracts were indefinite. As such, employees would generally work for the one company until retirement. However, fixed-term, part-time, and temporary contracts are increasingly become standardized in South Korea.

Fixed-term contracts are unable to exceed two years in length. For anything beyond two years, employees would need to be treated as if they have an indefinite contract. In South Korea, part-time employees are entitled to the same working rights as employees who perform the same job full-time – in proportion to the hours that are being worked.

Best practice in South Korea is for employers to draft a clear, written employment contract. It should be drafted in the local language and include compensation, benefits, job responsibilities, and rules around termination. Letters of offer and employment contracts should state compensation figures in South Korean Won (KRW), as opposed to any foreign currency.

By partnering with our South Korea EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term

Indefinite

Working hours in South Korea

Whilst South Koreans are known for working long hours, employers must provide their employees with at least one day off per week. In most circumstances, Sunday is allocated as the paid weekly day off. However, many professional employees choose to work a half-day on Saturday.

Holidays in South Korea

As well as vacation days, employees in South Korea are entitled to May 1st – Labor Day – as a paid public holiday. Whilst it is not compulsory for employers to treat other public holidays as a paid holiday, it is common practice that they do. Public holidays in South Korea include:

Holiday Schedule in South Korea [2024]

South Korea has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan Monday	New Year’s Day
9 Feb Friday	Seollal Holiday
10 Feb Saturday	Seollal
11 Feb to 12 Feb	Seollal Holiday
1 Mar Friday	Independence Movement Day
5 May Sunday	Children’s Day
15 May Wednesday	Buddha’s Birthday
6 Jun Tuesday	Memorial Day
15 Aug Thursday	Liberation Day
16 Sep Monday	Chuseok Holiday
17 Sep Tuesday	Chuseok
18 Sep Wednesday	Chuseok Holiday
3 Oct Thursday	National Foundation Day
9 Oct Wednesday	Hangeul Proclamation Day
25 Dec Wednesday	Christmas Day

Income tax

In South Korea, residents are taxed on their income, regardless of whether income was earned at home or abroad. This differs from non-residents, who are only taxed on the income they received in South Korea. Tax is deducted at the source of income and individuals are required to file a tax return at the end of each year.

For expatriates in South Korea, a special tax regime applies. Their income is taxed at a total rate of 20.9%. This is comprised of 19% income tax and 1.9% local income tax. There are certain foreign nationals in South Korea that can choose between the flat rate at 20.9% – without any deductions or progressive rates between 6.6% and 44% after deductions.

For residents and citizens of South Korea, the income tax rate is as follows:

0-12000000 KRW – 6%
12-46000000 KRW – 15%
46-88000000 KRW – 24%
88-300000000 KRW – 35%
More than 300 million KRW – 38%

Health insurance

In South Korea, universal healthcare is distributed by the National Health Insurance (NHI).

Both employers and employees need to contribute towards National Health Insurance. Each party pays 50% of the contribution and the rate is determined by an employee’s salary.

Vacation leave

Businesses with full-time, salaried employees are required by law to provide 15 day’s of paid annual to employees, once they reach one year’s company service.

There is an additional paid vacation day for each two years’ service thereafter
By law, the statutory vacation days per year are capped at 25 days

Sick leave

In South Korea, it is not mandatory for employers to provide employees with leave for non-work related illnesses or injuries. However, many employers elect to provide at least some paid sick leave to employees – regardless of whether an injury or illness is work related.

Employees will most often use their annual leave as sick days, if paid sick leave is unavailable.

Under the South Korean Labor Standards Act, employers must provide paid leave for work-related illnesses or injuries.

Maternity and paternity leave

Female employees in South Korea are entitled to 90 day’s maternity leave. The start date for maternity leave is generally agreed upon between the employer and employee. It is compulsory that 45 consecutive day’s leave be taken after childbirth.

Depending on the size of the business, either the employer or Employment Insurance pays for maternity leave. The amount that is paid to the employee will also depend on the size and scope of the business.

Parental leave may be available to employees that have worked for a company more than one year.

Parental leave applies to parents whose children are under six years old
Each parent is eligible for a maximum of one year’s leave
Parents are prohibited from taking leave at the same time
Parents are entitled to 40% of their monthly income from Employment Insurance

Termination and severance

Employers in South Korea are required to provide employees with at least 30 day’s notice prior to termination. Alternatively, employers can elect to pay an 30 day’s salary, in lieu of the notice period.

Individual employment contracts will often provide longer notice periods. In rare circumstances, an employee may be entitled to as much as 12 month’s notice.

Full-time employees may be entitled to severance pay that is equal to one month’s salary, for each year of company service. This applies if an employee has at least one year’s company service and they have worked more than 15 hours per week, or more than 60 hours per month. Severance pay must be paid within two weeks of an employee’s termination.

Employees with more than six month’s service are able to make unfair dismissal claims if they meet either of the following criteria:

The employee is covered by a modern award or enterprise agreement – regardless of how much they earn
The employee is award or agreement free and they earn less than the relevant income threshold

In most cases, when unfair dismissal is proven, an employee will be reinstated in their role. If this is not applicable, then up to six month’s compensation pay may be granted.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ South Korea EOR can mitigate risk for foreign companies and provide guidance through this process.

hassle-free South Korea compensation & benefits

Compensation & Benefits

South Korea compensation laws

The minimum wage in South Korea is 9,860 won (KRW) per hour. Whilst South Korea is known for its long work hours, laws have recently been passed that have reduced the maximum hours in a work week to 52 – down from 68. Regular weekly work hours have also been reduced to 40. If an employee works overtime, it must be paid at a rate between 50% and 100% – on top of their regular wage.

Minimum Wage Country Comparison Chart	(Per month in USD)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$1996
Algeria	$156
Uzbekistan	$22

Guaranteed benefits in South Korea

Employers in South Korea need to be aware of all guaranteed benefits that are legislated by law. These benefits will include time off for holidays and vacation days.

Employees in South Korea receive Labor Day (March 1st) off as a compulsory paid holiday. Aside from Labor Day, it is not mandatory for employers to provide paid days off for other public holidays. Despite this, many employers allow their staff to take these days off with pay.

Full-time salaried employees are legally entitled to 15 days of paid vacation after one year’s company service. For every two years of service thereafter, employees are entitled to a subsequent day off. The maximum number of vacation days per year is capped at 25.

Maternity and paternity leave is another guaranteed benefit in South Korea. Female employees receive 90 day’s maternity leave, with a start date that is agreed upon with their employer. Depending on the size of the business, either the employer or Employment Insurance will pay for maternity leave. For employees that have been with a company longer than a year, they may be entitled to parental leave – with strict conditions to be met.

South Korea benefit management

For employers to implement an effective benefit management plan, supplemental benefits should also be considered. Employers in South Korea will frequently provide their employees with supplemental health and life insurance benefits.

When you partner with Horizons, our experts will advise you on the insurance costs that need to be budgeted in your business plan. We’ll also support you to distribute the right benefits to your employees in South Korea.

Benefits and compensation restrictions

In South Korea, collective bargaining agreements (CBAs) are not as common as in other countries. Despite this fact, employers are still advised to make sure that their industry – and their employees – are not covered by a CBA. To maintain compliance with South Korea’s employment regulation, employers need to stay up-to-date with the country’s compensation laws.

South Korea Employer Of Record Peo

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Hire in South Korea

Employment Laws

Working hours in South Korea

Holidays in South Korea

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

What is the difference between a South Korea PEO and a South Korea EOR?

Generally speaking, the terms “South Korea PEO” and “South Korea EOR” are used interchangeably.

Can an EOR in South Korea hire both local and foreign nationals to work in South Korea?

An EOR in South Korea can feasibly hire both local and foreign nationals to work in South Korea.

However, the ability of Horizons to sponsor your foreign national employee in South Korea may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' South Korea EOR service take to hire an employee?

In most cases, Horizons’ South Korea EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in South Korea.

Is it possible to get a work visa in South Korea?

It is possible to get a work visa in South Korea. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in South Korea are limited, however—get started today to secure your employees’ visa spot.

South Korea EOR & PEO

Start hiring in South Korea

Simple, compliant hiring with Horizons EOR

Hire in South Korea

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stay compliant with South Korea labor laws

Employment Laws

Employment contracts in South Korea

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in South Korea

Holidays in South Korea

Income tax

Health insurance

Vacation leave

Sick leave

Maternity and paternity leave

Termination and severance

hassle-free South Korea compensation & benefits

Compensation & Benefits

South Korea compensation laws

Guaranteed benefits in South Korea

South Korea benefit management

Benefits and compensation restrictions

Hire in South Korea in 24h without your own local entity.

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