Talent Wiki - South Korea
Your quick guide on talent and labor compliance norms in South Korea
Capital
Seoul
Currency
South Korean Won (KRW)
Languages
Korean (official)
Payroll Frequency
Monthly
GDP per Capita
$34,767.21
Employer Tax
10.67% - 29.17%
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
Local Universities
The table below mentions top universities with world rank in South Korea:
Seoul National University
RANKING
Local: 1
World : 322
Korea Advanced Institute of Science and Technology (KAIST)
RANKING
Local: 2
World : 476
Yonsei University
RANKING
Local: 3
World : 800
Korea University
RANKING
Local: 4
World : 960
Sungkyunkwan University
RANKING
Local: 5
World : 1004
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 | 4,645.07 USD |
| Accountant | 2,820,000 KRW | 2,266.28 USD |
| Financial Manager | 8,300,000 KRW | 6,670.26 USD |
| Sales Manager | 6,470,000 KRW | 5,199.59 USD |
| Database Administrator | 4,080,000 KRW | 3,278.88 USD |
| Developer / Programmer | 3,650,000 KRW | 2,933.31 USD |
| Information Technology Manager | 6,350,000 KRW | 5,103.15 USD |
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 2023
| Date | Holiday | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 21 to 24 Jan | Seollal | Public Holiday |
| 1 Mar | March 1st Movement day | National Holiday |
| 5 May | Children’s day | Public Holiday |
| 27 May | Buddha’s birthday | Public Holiday |
| 6 Jun | Memorial day | Public Holiday |
| 15 Aug | Liberation Day | National Holiday |
| 28 to 30 Sep | Chuseok | Public Holiday |
| 3 Oct | National Foundation Day | National Holiday |
| 9 Oct | Hangeul Day | National Holiday |
| 25 Dec | Christmas Day | Public Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 11 days | Yes |
| Maternity Leave | 16 weeks | Yes |
Sick leaves in South Korea will depend on the contract between the employer and the employee
Payroll
Payroll Cycle
The payroll cycle is monthly in South Korea.
Minimum Wage
The minimum wage in South Korea is set at 9,160 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.
Bonus
13th Month Pay
A 13th-month pay is not mandatory in South Korea.
Employee Benefits
- Pension
- Health Insurance
- Accident Compensation
- Leaves
Taxes
Employer Payroll Tax
| Category | Contributions |
| National Pension (taxable monthly income at 5,240,000.00 KRW) | 4.5% |
| National Health Insurance (monthly contribution at 8,203,680 KRW) | 3.924% |
| Employment Insurance | 1.15% – 1.75% |
| Worker Accident Compensation Insurance | 0.7%-18.6% |
| Resident Tax | 0.5% |
Employee Payroll Tax
| Category | Contributions |
| National Pension (taxable monthly income at 5,240,000.00 KRW) | 4.5% (maximum monthly contribution capped at KRW 235,800) |
| National Health Insurance (monthly contribution at 8,203,680 KRW) | 3.924% |
| Employment Insurance | 0.9% |
Employee Income Tax
| Annual Taxable Income (KRW thousands) | Tax Rate | |
| 0 to 12,000 KRW | 6% | |
| 12,000 to 46,000 KRW | 15% | |
| 46,000 to 88,000 KRW | 24% | |
| 88,000 to 150,000 KRW | 35% | |
| 150,000 to 300,000 KRW | 38% | |
| 300,000 to 500,000 KRW | 40% | |
| 500,000 to 1,000,000 KRW | 42% | |
| Above 1,000,000 KRW | 45% | |
VAT
The standard rate of VAT is 10% in South Korea.
Offboarding & Termination
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.
