☑️ The Basics

Currency: South Korean won, KRW (Rate)

Public Holidays: 12 public holidays (see here)

Employer Taxes: ****9.96-28.46% of gross salary

Official Language: Korean

Payroll frequency: Monthly

Three things to know about employing in South Korea

  1. Employers in South Korea are not required to provide paid leave for non-work-related illness. Employees generally use their annual paid leave as personal sick days.
  2. There is no limit for daily overtime for employees, but the weekly overtime cannot exceed 52 hours.
  3. The number of paid vacation days available to an employee depends on their length of employment: 11 days in the first year of employment, 15 in the second and third years, and thereafter an additional day for every two years of employment (capped at a maximum of 25 days).

Employment in South Korea

Notice Period

Notice period for dismissals is 30 days (or 30 days' pay in lieu of notice).

Termination & Severance

Employees are entitled to  severance pay  of one month’s salary for each year of employment if they have worked for at least one year. These severance payments apply to voluntary resignation as well as termination for cause.

Probationary period

Three months

Minimum Wage

KRW 8,590 (KRW 1,795,310 monthly)

IP protection and non-compete agreements

Non-compete agreements must be reasonable and limited in scope. Legally enforceable agreements are usually not longer than 12 months and must include (monetary or otherwise) compensation to the employee in exchange for the execution of the non-compete covenant.

Working Hours

Eight hours per day, 40 hours per week.

Overtime

Anything over 40 hours per week and eight hours per day is considered overtime, and is paid at 150% of a regular wages.

Working on holidays: Employees are entitled to 150% of regular wages for eight hours of work and 200% of regular wages for more than eight hours' work.

There is no limit for daily overtime for employees, but the weekly overtime cannot exceed 52 hours.

Paid Holidays

In the first year of employment, employees are entitled to 11 days of paid leave per year.

In their second and third years, employees are entitled to 15 days of paid leave per year.

In the third year and onwards, employees accrue one day’s  paid leave  for every two years of employment (capped at a maximum of 25 days).

Sick pay and time off

Employers are not mandated to provided paid leave for non-work-related illness. Employees generally use their annual paid leave as personal sick days.

Parental leave

Employees are entitled to 90 days of paid maternity leave (120 days in case of twins). Of this, at least 60 days (75 days in case of twins) is paid by the company; the remainder is paid by the government.

Employees are also entitled to up to 10 days of paid paternity leave. Of this, five days is paid by the company and five by the government.

Taxes in South Korea

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Employees

Social Security (8.97%)

Income tax

Employers

**Total social contributions (**9.96-28.46%)

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