Expand your global workforce in South Korea
Your guide to the employment landscape, working customs and local labor laws in South Korea
Capital
Seoul
Currency
South Korean Won (KRW)
Languages
Korean (official)
GDP per Capita
$34,806.95
Employer Tax
10.67% - 29.17%
Payroll Frequency
Monthly
Talent overview
South Korea holds the 4th position for the largest economy in Asia, followed by the 10th position for the largest economy in the world. The country’s nominal GDP is expected to amount to $1.82 trillion and $1.91 trillion, according to the International Monetary Fund. The service sector and Industrialization are the major contributors to economic development.
Major economic hubs:
Gyeonggi, Seoul, Chungnam
Skills in demand:
English content development, Sales and Marketing, Programmers and Developers
South Korea
Top local universities in South Korea
Seoul National University
RANKING
Local: 1
World : 322
Korea Advanced Institute of Science and Technology (KAIST)
RANKING
Local: 2
World : 510
Yonsei University
RANKING
Local: 3
World : 891
Korea University
RANKING
Local: 4
World : 1028
Sungkyunkwan University
RANKING
Local: 5
World : 1129
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
The average monthly salary data in South Korea is mentioned below
| Job Title | Average Monthly Salary (KRW) | Average Monthly Salary (USD) |
| Accounting Manager | 5,780,000 KRW | 4,570 USD |
| Accountant | 2,820,000 KRW | 2,230 USD |
| Financial Manager | 8,300,000 KRW | 6,563 USD |
| Sales Manager | 6,470,000 KRW | 5,116 USD |
| Database Administrator | 4,080,000 KRW | 3,226 USD |
| Developer / Programmer | 3,650,000 KRW | 2,886 USD |
| Information Technology Manager | 6,350,000 KRW | 5,021 USD |
Employ in South Korea
Employing in South Korea
While onboarding any individual from South Korea, the employer must know about the Labor laws, employment terms, deductions, and benefits. This section has all the necessary information that employers can use.
Employee Contract
In South Korea, there are terms and conditions for the employment contract. The contract should mention all the necessary conditions with leaves, working hours, benefits, and allowances to be provided to the employee. Employee contracts must be written in the Korean official language.
Probation period
Newly hired employees in South Korea are expected to undergo a probationary period of up to 30 days.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| January 27 | Seollal Holiday | National Holiday |
| January 28 | Seollal Holiday | National Holiday |
| January 29 | Seollal | National Holiday |
| January 30 | Seollal Holiday | National Holiday |
| March 1 | Independence Movement Day | National Holiday |
| March 3 | Day off for Independence Movement Day | National Holiday |
| May 1 | Labor Day | National Holiday |
| May 5 | Children’s Day | National Holiday |
| May 5 | Buddha’s Birthday | National Holiday |
| May 6 | Day off for Children’s Day | National Holiday |
| June 6 | Memorial Day | National Holiday |
| August 15 | Liberation Day | National Holiday |
| October 3 | National Foundation Day | National Holiday |
| October 5 | Chuseok Holiday | National Holiday |
| October 6 | Chuseok | National Holiday |
| October 7 | Chuseok Holiday | National Holiday |
| October 8 | Day off for Chuseok Holiday | National Holiday |
| October 9 | Hangeul Proclamation Day | National Holiday |
| December 25 | Christmas Day | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 15 days | Yes |
| Maternity Leave | 90 days | Yes |
Sick leaves in South Korea will depend on the contract between the employer and the employee
Leave Compliance
Payroll in South Korea
Payroll cycle
The payroll cycle is monthly in South Korea.
Minimum wage
The minimum wage in South Korea is set at KRW 10,030 won per hour.
Overtime pay
Working after 10 pm is paid 200% of the hourly salary, and each additional working hour beyond 40 hours a week or 8 hours a day is paid 150% of the hourly salary. The maximum weekly overtime is 12 hours.
How taxes work
Employer Payroll Tax
| Scheme | Contribution |
| National Pension Scheme | 4.5% |
| Employment Insurance | 0.9% |
| Industrial Accident Compensation Insurance | 0.7% to 5.53% |
| National Health Insurance | 3.495% |
Employee Payroll Tax
| Scheme | Contribution |
| National Pension Scheme | 4.5% |
| Employment Insurance | 0.9% |
| Industrial Accident Compensation Insurance | – |
| National Health Insurance | 3.495% |
Employee Income Tax
| Annual Taxable Income
(KRW, Korean Won) |
Income Tax Rate |
| 0 to 12,000,000 | 6% |
| 12,000,001 to 46,000,000 | 15% |
| 46,000,001 to 88,000,000 | 24% |
| 88,000,001 to 150,000,000 | 35% |
| 150,000,001 to 300,000,000 | 38% |
| 300,000,001 to 500,000,000 | 40% |
| 500,000,001 to 1,000,000,000 | 42% |
| Above 1,000,000,000 | 45% |
VAT
The standard rate of VAT is 10% in South Korea.
Bonus
13th Month Pay
A 13th-month pay is not mandatory in South Korea.
Employee Benefits
- Pension
- Health Insurance
- Accident Compensation
- Leaves
Employee offboarding
The termination notice should be in writing and include the reasons for the termination.
Employment rules must provide for a particular process for dismissal (e.g., a disciplinary committee hearing). If not followed, the termination may be invalid.
South Korean regular and probationary employees are given up to 30 days of notice period.
Only full-time employees are eligible for severance pay. The employee is provided with severance pay equal to 1 month’s salary if the service of the individual is more than 1 year.
Additionally, the employer can choose to set up a retirement plan based on mutual consent.
Visa and
immigration
There are three categories of work visas that foreign employees can apply for when choosing to work in South Korea:
- Professional Visa,
- Non-Professional Visa,
- Business Visa
Under these categories are more types of visa that specifies the industry and purpose of a foreign employee in the country. To legally work in South Korea, employees must apply for a suitable type of visa.
Your employment toolkit for South Korea
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration