With one of the largest economies in Asia, South Korea offers access to a talented workforce and a dynamic business environment. It’s an attractive destination for global expansion — if you can navigate its employment regulations.
A South Korea employer of record (EOR) is the easiest way to build your global team. Partnering with a global EOR, like G-P, means you can hire talent in South Korea and we’ll manage the red tape so you don’t have to. We ensure you comply with the country’s labor laws — with no need to set up a local entity.
Simplify hiring in South Korea with an employer of record
A South Korea EOR, like G-P, simplifies global employment from the start. We handle local HR management, draft employment contracts, administer payroll, handle benefits, and more. We make sure your business complies with The Labor Standards Act, the law that sets South Korea’s employment standards.
The EOR hiring process in South Korea:
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Partner with a global employment expert. Choose an EOR with deep expertise in South Korea as they’ll guide you through the local legal landscape.
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Source your ideal candidate. You find the best talent, and the EOR handles the rest.
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Generate a compliant employment contract. Your EOR drafts a locally compliant contract in line with South Korea’s labor laws, including salary, working hours, and notice periods.
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Onboard and manage your team. The EOR manages the entire employment lifecycle. This includes managing your team members’ payroll and administering benefits.
Employment contracts in South Korea
Indefinite contracts are standard. Fixed-term contracts can be a maximum of two years before they’re considered indefinite.
Employers must provide a written contract or statement, ideally in Korean, setting out key terms such as salary, working hours, holidays, and paid leave. Failure to do so can result in fines of up to KRW 5M. All compensation must be in South Korean won (KRW).
A South Korea EOR simplifies global hiring by drafting legally compliant contracts. This ensures your team members — and your business — are protected.
Leave entitlements in South Korea
Working hours in South Korea
The standard workweek is 40 hours over five days. The total maximum workweek is 52 hours, made up of 40 standard hours and up to 12 hours of overtime.
Overtime is paid at a rate of at least 150% of the employee's regular wage. Employers must also provide at least one paid day off per week, typically Sunday.
Public holidays in South Korea
Most employees get 16 paid public holidays. However, this only applies to private companies with five or more employees. The national holidays are:
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New Year's Day
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Lunar New Year (Seollal, three days)
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Independence Movement Day (Samiljeol)
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Children's Day
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Buddha's Birthday
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Labor Day
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Memorial Day
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Liberation Day
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Korean Thanksgiving (Chuseok, three days)
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National Foundation Day
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Hangeul Day
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Christmas Day
Official election days are also temporary public holidays for everyone.
Vacation days in South Korea
Employees who’ve worked at least 80% of the previous year get 15 days’ paid annual leave. After three years of service, employees get an extra day of leave for every two years of continuous service, up to a maximum of 25 days per year.
Employees with less than one year of service get one day of leave for each month of continuous work.
Sick leave in South Korea
Employees use annual leave when they’re sick as Korean law doesn’t provide sick leave. However, employers must give paid leave for work-related illnesses or injuries. This leave is paid by mandatory industrial accident compensation insurance (IACI), which applies to all businesses, no matter their size.
Maternity, paternity, and parental leave in South Korea
Pregnant employees get 90 days’ paid maternity leave, or 120 days for multiple births. They must take at least 45 days in a row after childbirth. Non-birthing parents get 20 days’ paid paternity leave.
Eligible parents with children aged eight or younger, or in second grade or lower, can get up to one year of parental leave. The government's employment insurance fund pays a monthly allowance during this leave, with rates varying based on the leave length and incentives for early-childhood care
How an employer of record in South Korea helps manage leave entitlements
A South Korea EOR handles all leave entitlements, including annual paid leave and parental leave. This removes the admin burden so you can focus on business growth.
Health insurance and supplementary benefits in South Korea
South Korea has universal healthcare provided by national health insurance (NHI). Employers must enroll employees in this mandatory program.
Employers and employees contribute toward NHI. They each pay 3.595% of the employee’s monthly salary. There’s also a mandatory long-term care insurance payment, which is 13.14% of the NHI contribution, also split equally.
To attract top talent, many employers offer supplementary benefits like private health and life insurance. We suggest budgeting an extra 18% on top of gross salary for employer-paid statutory benefits, like social security contributions. This is a minimum, and the percentage depends on the industry and role.
Bonuses in South Korea
It’s common for companies to pay incentives or performance-based bonuses. Payment of bonuses is at the employer’s discretion unless specified in an employment contract or collective agreement.
How an employer of record helps with benefits in South Korea
A South Korea employer of record manages mandatory and supplementary benefits. The EOR also calculates and distributes contributions, and guides you on budgeting for these costs.
Termination and severance in South Korea
Terminating an employee in South Korea requires just cause, which means you need a valid reason for dismissal.
Probation: Employees on probation have the same legal rights and benefits as regular employees, including social insurance, annual leave accrual, severance pay, and protection under the Labor Standards Act. They can be dismissed, but you still need a just cause.
Notice: Employers must give at least 30 days' notice of dismissal or pay 30 days' salary in lieu of notice. This applies unless the employee has worked less than three months and the employment contract has this exception.
Severance pay: Employees with at least one year of continuous service get severance pay (toejikgeum) upon termination for any reason. This includes resignation, termination, mutual agreement, or retirement. In most cases, even if an employee is terminated for reasons other than gross misconduct, which is rare, they still get severance. The payment must equal at least 30 days of their average wage for each year of service and paid within 14 days of termination.
A South Korea EOR handles offboarding with care. EORs ensure your business follows the law to the letter, and that dismissals meet just cause.
Payroll and taxes in South Korea
South Korea has a progressive tax system. Several mandatory employer contributions are deducted from the employee’s salary. Along with the NHI contributions, these include:
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National pension: 4.5% of monthly salary
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Employment insurance: 0.9% of monthly salary (additional employer contributions may apply)
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IACI: Varies by industry, ranging from 0.7–18.6% of monthly salary
A South Korea EOR manages payroll tax and mandatory withholdings. This ensures you comply with the law.
Choosing the right EOR in South Korea
When choosing an employer of record South Korea, consider the following:
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Compliance expertise: The right EOR has in-depth knowledge of South Korea’s labor laws and tax regulations.
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Comprehensive EOR solutions: Choose an EOR that manages all aspects of employment, including payroll processing, tax remittances, benefits administration, leave management, and offboarding.
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Scalability and flexibility: The EOR should accommodate your needs, whether you're hiring a single employee or a global team, and grow with your business.
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Technology and integration: An AI-powered EOR simplifies onboarding, management, and employee payment. Look for an EOR that integrates with existing HCM, PEO, or payroll systems to streamline operations.
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Transparency and communication: Choose an EOR that offers clear communication channels, transparent pricing, and regular updates on compliance changes.
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Reputation and references: Research the EOR's reputation, customer testimonials, and industry recognition to ensure they have a track record of reliability and success. As the #1 EOR according to all industry analyst reports, G-P has a solid reputation and extensive global employment experience.
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Data security and compliance. Ensure your EOR follows strict data security protocols like GDPR. This is critical for protecting sensitive employee information and maintaining compliance.
Use G-P EOR for global hiring in South Korea
G-P EOR is the award-winning, AI-enabled global hiring solution that empowers startups, SMBs, and enterprise businesses to build global teams with ease. Onboard, manage, and pay top talent in over 180 countries in minutes, without the complexity of entity setup.
G-P EOR is the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while keeping consistent and accurate data across your integrated systems.
Request a proposal to start hiring in South Korea today.
