Currency
South Korea won (KRW)
EOR IN South Korea
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A guide to employing and growing your team in South Korea
Fast and compliant market entry. Hire top local talent without the need for a legal entity
South Korea is a highly advanced, industrialized economy and a global leader in technology, automotive manufacturing, and semiconductors. With a workforce of over 28 million and a median age of around 45, it is known for its highly educated, disciplined, and professional talent pool, particularly in manufacturing, professional services, and the tech sector. The country is strongly export-driven and supported by a robust legal framework, including the Labor Standards Act, which ensures comprehensive protections for employee rights while enabling business innovation. Employees benefit from strong protections against discrimination based on age, religion, sexual orientation, gender expression, and race, making the country both a competitive and progressive environment for business and talent. The minimum wage in South Korea is 10,320.00 KRW per hour, effective January 2026.
Employer Contributions
Industrial Accident Compensation Insurance: 1.15%
National Health Insurance: 4%
Employment Insurance: 1.15%
Long-term Care Insurance: 0.459%
Total Employer Contribution: 6.759%
Employee Payroll Taxes
National Pension: 4.5%
National Health Insurance: 3.43%
Employment Insurance: 0.80%
Total Employee Contribution: 8.73%
Employee Income Tax Rates
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%
Above 1 billion KRW: 49.5%
Statutory Leave
Employees who have worked at least 80% of a full year (12 months) are entitled to annual paid leave. Employees with less than one year of service or those who have not met the 80% threshold are entitled to one day of paid leave for each month worked. In addition, there are 17 paid public holidays annually. Employers are not required to provide paid sick leave for non-work-related illnesses. However, for work-related injuries or illnesses, employees are entitled to paid leave, with costs typically covered through the industrial accident insurance system.
Pregnancy and Maternity Leave
Female employees are entitled to 90 days of maternity leave (120 days for multiple births), with 60 days paid for single births and 75 days paid for multiple births. Mothers with infants under one year old are also entitled to at least 30 minutes of nursing time per day.
Paternity Leave
Fathers are entitled to a minimum of 10 days of paid paternity leave, which must be taken within 90 days of the child’s birth.
Work-Related Injury Leave
Parental Leave
Employees can request up to one year of childcare leave for children under the age of eight. This leave is compensated by the government, with benefits of up to approximately KRW 1.7 million per month.
Education Leave
Employees may request reduced working hours (between 15 and 30 hours per week) for up to one year to pursue academic or educational goals.
Other Leave
Employees are entitled to various additional leave types, including up to 90 days of family care leave annually to care for sick family members, one year of childcare leave for young children, three days of fertility treatment leave per year (with the first day paid), and one day of unpaid menstrual leave per month upon request.
Termination Process
Employment contracts in South Korea can only be terminated if a just cause is established, such as dishonesty, negligence, fraud, or other work-related offenses. Termination of indefinite contracts is strictly regulated, and employers must follow due process, including proper documentation and evidence, especially in cases of misconduct or poor performance. Voluntary resignations are permitted but should be formally documented and signed by the employee. Employers are also expected to provide clear justification and follow appropriate procedures when ending employment during probation or upon contract expiry. Employees who have completed at least one year of continuous service are entitled to severance pay equivalent to one month’s wages for each year of employment.
Notice Period
Employers must provide at least 30 days’ prior notice before terminating an employee. Exceptions apply for employees with less than three months of service or in cases of serious misconduct that significantly impacts the organization.
Probation Period
While not explicitly regulated under the Labor Standards Act, probation periods are typically up to 3 months. During this time, employers are not required to provide notice of termination.