Remote’s guide to employing in South Korea.
Capital city
Seoul
Currency
South Korean won
(₩, KRW)
Population size
51,709,098
(est. 2019)
Languages spoken
Korean
Remote-Owned Entity
Coming soon
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
As the world’s tenth largest economy, South Korea enjoys the 7th highest human development index in Asia, an advanced democracy with extensive press freedoms, the world’s fastest internet speeds, and of course, a vibrant entertainment industry that has given us the delights of K-Pop.
Capital city
Seoul
Currency
South Korean won
(₩, KRW)
Languages spoken
Korean
Population size
51,709,098 (est. 2019)
Ease of doing business
Very easy
Cost of living index
81.20 (2021)
Payroll frequency
Monthly
VAT - standard rate
10%
GDP - real growth rate
2.0 (2019)
Remote currently offers contractor payment and management services in South Korea. We are busy building our own entity in the country to provide you with best possible employment solutions for your employees.
South Korea’s Labor Standards Act of 2005 spells out provisions for employee protections and workers’ rights for its workforce of 28.3 million. Employees in South Korea enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in South Korea.
In South Korea, the minimum wage is reviewed annually and is currently fixed at ₩8,720 Won ($7.63) or 1,822,480 won ($1,594.21) per month.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in South Korea fast. The minimum onboarding time we need is only 20 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in South Korea are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
In order to access specific information about our benefits packages in South Korea, start onboarding your first employee with Remote today.
Learn how employment taxes affect your payroll and your employees’ paychecks in South Korea.
4.5% - National pension contribution
3.43% - National Health Insurance contribution
1.05% - 1.65% - Employment insurance
0.70% to 1.90% - Worker Accident Compensation Insurance
4.5% - National Pension contribution
3.43% - National Health Insurance
0.80% - Employment Insurance
Up to 12 million KRW - 6.6%
12 million - 46 million KRW - 16%
46 million - 88 million KRW - 26.4%
88 million - 150 million KRW - 38.5%
150 million - 300 million KRW - 41.8%
300 million - 500 million KRW - 44%
500 million - 1 billion KRW - 46.2%
1 billion and up - 49.5%
An employee shall be granted 15 days of annual paid leave if they have recorded at least 80% attendance during one full year. If the employee has worked for three years or longer, the company shall grant one additional paid leave day for every two consecutive years of service after the first year. However, the total number of days of leave (including additional days of accrued leave) stops at 25 days.
For an Employee who has worked for less than one year (or for those who have recorded less than 80% attendance during a full year), the company must add one day of paid leave for each completed month of service.
There are 12 paid public holidays in South Korea.
Employers are not obligated to provide time off for non-work-related illnesses but are generally required to provide paid time off if employees fall ill or sustain injuries while on the job and can recover any sick pay made from the government industrial accident insurance fund.
Female employees are entitled to 90 days of maternity leave, or 120 in case of multiple births, with 60 days (for single births) paid, and 75 days paid (for multiple births).
Mothers with infants below a year old are entitled to at least 30 minutes of nursing time every day.
Employers are obligated to grant at least 10 days of paid paternity leave to employees upon request within 90 days after the employee’s partner’s delivery.
Additionally, employees can request an entire year of childcare leave for a child aged below eight, compensated by the government at a rate equivalent to KRW 1.7 million ($1,489.47).
Employees can request to have their working hours reduced to between 15 and 30 hours to focus on their academic career, for up to an entire year.
of Absence for Family Care: 90 days per year and must be used in periods of 30 days or more at a time
Fam
re Leave: up to 10 days and the period is included in the period for Leave of Absence for Family Care
Employee contracts can only be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences, otherwise, prior notice must be provided before terminating an employee.
Employers are required to provide at least 30 days’ prior notice before terminating an employee, except if the employee is contracted to work for less than three months or has committed an intentional offence that sets back the employing organization significantly.
Employees who have worked for at least an entire year are entitled to a severance package equivalent to a month’s wages for every year of continuous employment with the employer.
The Labor Standards Act of Korea does not have an explicit regulation on probation periods. However, the law does state that notice of termination is not required for “Employees under probationary period (of 3 months or less)”, so 3 months is commonplace.