Hire employees in 180+ countries

Hire international contractor

Find the best candidates for your team

Retain talents with the best benefits

Work visa & permit services

Explore all our add-ons

Our borderless team and our mission

How we accelerate global hiring

Discover our partner benefits

Platform news and annoucements

Our offices around the world

How we keep your data secure

How to hire remote teams

Shape your global hiring strategy

Global hiring cost insights

Calculate employment cost

Employment contracts
in South Korea.

SALARY PAYMENT IN South Korean Won (KRW, ₩)

CONTRACT LANGUAGES Korean / English

PAYROLL TAX 16.43% – 34.94%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

South Korea

    Standard employment contract in South Korea: Open-ended contract

    In South Korea, the standard employment contract that’s offered in professional settings are indefinite contracts. As such, employees generally work for the one company until retirement. 

    Indefinite contracts are also referred to as ‘open-ended’, ‘unlimited’ or ‘permanent’ contracts. 

    The majority of matters relating to contracts of employment are governed by the Labor Standards Act (1997). The minimum standards set out in the Labor Standards Act prevail over any provision within an employment contract that is less favorable to the employee. 

    Alternative employment contract in South Korea: Temporary contract

    Fixed contracts are increasingly used across industries in South Korea. Also known as ‘limited’ or ‘temporary’ contracts, fixed contracts are only valid for a specified period, generally no more than 2 years. 

    Employees on fixed term contracts benefit from additional protections under the Act on the Protection of Fixed-term and Part-time Employees (2006) and the Act On The Protection Of Temporary Agency Workers (1998). 

    Note that, where an employee has been employed on a fixed contract for more than two years, that employee will usually be automatically considered to be employed for an indefinite term.

    Are there other types of employment contracts in South Korea?

    South Korean labor law recognizes a third category of workers, commonly referred to as ‘dispatched workers’. 

    Dispatched workers are employed by dispatching companies, also known as temporary work agencies, but are subject to the direct supervision and control of the end-employer. 

    Hiring in South Korea, Made Easy

    Your business can easily hire employees in South Korea without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

    FAQs

    The main difference between Indefinite and Fixed contracts is ‘permanence’ i.e. the potential length of the period of employment. Indefinite contracts employ on a permanent basis, whereas fixed contracts employ for a specified period of time. This means that termination is needed to end an Indefinite contract, whereas Fixed contracts usually end on a predefined date or upon completion of a pre-specified event, such as the completion of a project. 

    Ultimately, deciding upon the right contract depends on the circumstances of your business and planned operations. For businesses establishing themselves in South Korea, best practice is to draft a clear, written contract of employment. All employment contracts should be drafted in the local language and include details on compensation, benefits, job responsibilities, and company policy on notice periods, disciplinary and dismissal procedures. Letters of offer and employment contracts should state compensation figures in South Korean Won (KRW), rather than any foreign currency.

    Partner with our South Korea PEO and gain access to Horizons’ team of local experts who can provide assistance with drafting strong employment contracts that are compliant with local labor laws and regulations.

    Success stories from businesses we’ve helped enter and grow in new markets.

    Client Testimonials

    What to expect when you connect with Horizons

    Recruit, hire and pay remote
    teams without a local entity

    We respect your data, and process it according to our Privacy Policy