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Discover global hiring strategies from leading recruitment platforms
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Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
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
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:
Local: 1
World : 322
Local: 2
World : 510
Local: 3
World : 891
Local: 4
World : 1028
Local: 5
World : 1129
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
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 |
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.
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.
Newly hired employees in South Korea are expected to undergo a probationary period of up to 30 days.
| Date | Name | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 10 Feb | Seollal Holiday | Public Holiday |
| 12 Feb | Seollal Holiday | Public Holiday |
| 1 Mar | Independence Movement Day | National holiday |
| 1 May | Labor Day | Bank Holiday |
| 5 May | Children’s Day | Public Holiday |
| 15 May | Buddha’s Birthday | Public Holiday |
| 6 Jun | Memorial Day | Public Holiday |
| 15 Aug | Liberation Day | National holiday |
| 16 Sep | Chuseok Holiday | Public Holiday |
| 17 Sep | Chuseok | Public Holiday |
| 18 Sep | Chuseok Holiday | Public Holiday |
| 3 Oct | National Foundation Day | National holiday |
| 9 Oct | Hangeul Proclamation Day | National holiday |
| 25 Dec | Christmas Day | Public Holiday |
| 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
Leave Compliance
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.
| 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% |
| 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% |
| 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% | |
The standard rate of VAT is 10% in South Korea.
A 13th-month pay is not mandatory in South Korea.
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.
There are three categories of work visas that foreign employees can apply for when choosing to work in South Korea:
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.
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