Introduction
South Korea is one of Asia’s leading economies, recognised for its highly educated workforce, advanced infrastructure, and innovation-driven industries. As businesses expand into the Korean market, understanding local employment laws and statutory obligations is essential to ensuring compliance and building a successful workforce.
This guide provides an overview of South Korea’s employment regulations, including employment contracts, working hours, statutory leave, payroll obligations, social security contributions, termination requirements, and employer responsibilities. Whether you are hiring your first employee or expanding an existing team, understanding these requirements will help you navigate the employment landscape with confidence.
Country at a Glance
| Item | Details |
|---|---|
| Capital | Seoul |
| Currency | South Korean Won (KRW) |
| Official Language | Korean |
| Standard Working Hours | 40 hours per week |
| Payroll Frequency | Monthly |
| Minimum Wage (Current) | KRW 10,320/hour (Effective 1 January 2026) |
| Employer of Record (EOR) | Available |
Employment Contracts
Written Employment Terms
Although employment contracts may be entered into verbally under Korean law, employers are legally required to provide employees with a written statement of key employment terms. This promotes transparency and helps minimise employment disputes.
A written employment contract should generally include:
- Employer and employee details
- Job title and responsibilities
- Place of work
- Employment commencement date
- Working hours
- Salary and payment schedule
- Annual leave entitlement
- Other statutory employment conditions
Employers are encouraged to maintain comprehensive written employment agreements that comply with the Labour Standards Act.
Probation Period
South Korean employment law does not prescribe a mandatory probation period.
Many employers implement a probation period of three to six months, depending on the position. Employees on probation generally enjoy the same statutory employment protections as other employees.
Fixed-Term Employment
Fixed-term employment contracts are permitted. However, employees who are continuously employed under fixed-term contracts for more than two years are generally deemed to be permanent employees unless a statutory exception applies under the Act on the Protection of Fixed-Term and Part-Time Employees.
Working Hours
The standard working hours under the Labour Standards Act are:
- Maximum 8 hours per day
- Maximum 40 hours per week
For employers with five or more employees, overtime work is generally limited to 12 additional hours per week, unless otherwise permitted by law.
Employers should maintain accurate records of employees’ working hours to demonstrate compliance.
Rest Periods
Employees are entitled to statutory rest breaks during the working day.
| Working Time | Minimum Rest Period |
|---|---|
| More than 4 hours | 30 minutes |
| More than 8 hours | 1 hour |
Rest periods should generally be provided during working hours and allow employees to use the time freely.
Weekly Rest Day
Employees are generally entitled to at least one paid weekly rest day, subject to the attendance requirements under the Labour Standards Act.
Overtime, Night Work and Holiday Work
Employees who perform qualifying overtime, night work or statutory holiday work are generally entitled to premium pay in accordance with the Labour Standards Act.
Employers should ensure overtime arrangements comply with statutory limits and obtain employee consent where required.
Minimum Wage
South Korea’s national minimum wage is reviewed annually by the Minimum Wage Commission.
Current Minimum Wage (Effective 1 January 2026)
| Item | Amount |
|---|---|
| Hourly Wage | KRW 10,320 |
| Daily Wage (8 hours) | KRW 82,560 |
| Monthly Equivalent (209 hours) | KRW 2,156,880 |
Announced Minimum Wage (Effective 1 January 2027)
The Minimum Wage Commission has announced that the statutory minimum wage will increase from 1 January 2027.
| Item | Amount |
|---|---|
| Hourly Wage | KRW 10,700 |
| Daily Wage (8 hours) | KRW 85,600 |
| Monthly Equivalent (209 hours) | KRW 2,236,300 |
Payroll & Salary Payment at a Glance
| Payroll Requirement | Details |
|---|---|
| Payroll Frequency | Wages must be paid at least once per month on a predetermined payday. |
| Payment Method | Wages must generally be paid directly to the employee. |
| Payment Currency | Wages must be paid in Korean Won (KRW) unless otherwise permitted by law. |
| Wage Payment Principle | Wages should generally be paid in full, except for statutory or lawful deductions. |
| Wage Statement (Payslip) | Employers are required to provide a written or electronic wage statement showing wage details and deductions. |
| Payroll Records | Employers must maintain a wage ledger and payroll records in accordance with the Labour Standards Act. |
| Statutory Deductions | Employers are responsible for withholding and remitting applicable taxes and statutory social insurance contributions. |
| Final Wage Payment | Outstanding wages and other payments should generally be settled within 14 days after termination, unless otherwise agreed between the employer and employee. |
South Korea’s payroll requirements are primarily governed by the Labour Standards Act. Employers are responsible for ensuring wages are paid accurately and on time, issuing wage statements, maintaining payroll records, and processing applicable tax and social insurance deductions.
Leave Entitlements
South Korea provides employees with a range of statutory leave entitlements under the Labour Standards Act and the Equal Employment Opportunity and Work-Family Balance Assistance Act. In addition to annual leave and public holidays, eligible employees may be entitled to family-related leave, including maternity leave, spouse childbirth leave and childcare leave.
Employers may offer leave benefits that exceed the statutory minimum, but they must, at a minimum, comply with the requirements set out under applicable legislation.
Leave Entitlements at a Glance
| Leave Type | Statutory Entitlement |
|---|---|
| Annual Leave | Employees with less than one year of service generally accrue one day of paid leave for each month of perfect attendance. Employees with at least one year of service are generally entitled to 15 days of paid annual leave, subject to statutory attendance requirements. Additional leave accrues with longer service. |
| Public Holidays | Employees are generally entitled to paid public holidays designated by the South Korean government. |
| Sick Leave | There is no general statutory entitlement to paid sick leave under the Labour Standards Act. Paid sick leave may be provided under company policy or employment contracts. |
| Maternity Leave | 90 days of maternity leave for a single birth, with at least 45 days taken after childbirth. For premature births requiring neonatal intensive care, the entitlement increases to 100 days. |
| Spouse Childbirth Leave | Eligible employees are entitled to 20 working days of paid leave. The leave must generally be taken within 120 days of childbirth and may be taken in up to four separate periods. |
| Childcare Leave | Eligible employees may take up to one year of childcare leave per child. The entitlement may be extended to 18 months in certain circumstances, including where both parents each take at least three months of childcare leave for the same child, for single-parent families, or where the child has a severe disability. |
| Family Care Leave | Eligible employees may apply for family care leave to care for certain family members, subject to the conditions prescribed under applicable legislation. |
Social Security Contributions at a Glance
| Contribution Scheme | Employer | Employee | Purpose |
|---|---|---|---|
| National Pension | ✔ | ✔ | Provides retirement, disability and survivor benefits. |
| National Health Insurance | ✔ | ✔ | Provides access to Korea’s public healthcare system. |
| Long-term Care Insurance | ✔* | ✔* | Supports long-term care services for ageing and eligible individuals. |
| Employment Insurance | ✔ | ✔** | Provides unemployment benefits and employment support programmes. |
| Industrial Accident Compensation Insurance | ✔ | — | Covers work-related injuries, occupational diseases and occupational accidents. |
* Long-term Care Insurance is collected together with National Health Insurance contributions.
** Employee contributions apply in accordance with the Employment Insurance Act.
Note: Contribution rates are prescribed by law and are subject to change. Employers should refer to the relevant government authorities or seek professional advice to confirm the latest applicable rates.
South Korea’s social security system is commonly referred to as the Four Major Social Insurances, comprising the National Pension, National Health Insurance, Employment Insurance and Industrial Accident Compensation Insurance. In addition, Long-term Care Insurance is administered together with National Health Insurance. Employers are generally responsible for registering eligible employees, making the required employer contributions, withholding applicable employee contributions, and remitting them to the relevant authorities.
Termination & Retirement Allowance
Employers in South Korea must ensure that any termination of employment complies with the Labour Standards Act and other applicable employment legislation. Dismissals should be supported by lawful grounds, follow the prescribed statutory procedures, and include the timely settlement of all outstanding payments, including retirement allowances where applicable.
Termination & Retirement Allowance at a Glance
| Key Requirement | Details |
|---|---|
| Notice Period | Employers must generally provide 30 days’ prior notice of dismissal or 30 days’ ordinary wages in lieu of notice, unless a statutory exception applies. |
| Grounds for Dismissal | Employees may only be dismissed for a justifiable reason. |
| Written Notice | Employers must provide written notice stating the reason for dismissal and the effective date of dismissal. |
| Retirement Allowance (Severance Pay) | Employees with at least one year of continuous service are generally entitled to a statutory retirement allowance under the Act on the Guarantee of Employees’ Retirement Benefits, unless covered by a compliant retirement pension scheme. |
| Minimum Retirement Allowance | Generally 30 days’ average wages for each completed year of continuous service. |
| Final Settlement | Outstanding wages and other monies due should generally be paid within 14 days after termination, unless another payment date has been agreed between the employer and the employee. |
| Unfair Dismissal | Employees may seek relief through the Labour Relations Commission if they believe a dismissal is unlawful or unfair. |
Note: The above provides a general overview of South Korea’s statutory termination requirements. Specific obligations may vary depending on the circumstances of the termination and the applicable employment legislation.
Employer of Record (EOR) in South Korea
Expanding into South Korea presents exciting business opportunities, but it also requires employers to comply with local employment, payroll, tax and labour regulations. For businesses that do not have a legal entity in South Korea, an Employer of Record (EOR) offers a compliant and efficient way to hire local talent.
An Employer of Record acts as the legal employer on behalf of a business, managing employment administration while allowing the client to retain full control over the employee’s day-to-day responsibilities and performance.
Employer of Record (EOR) at a Glance
| Key Information | Details |
|---|---|
| What is an EOR? | An Employer of Record (EOR) is a third-party organisation that legally employs workers on behalf of another company. |
| Who is the legal employer? | The EOR becomes the legal employer and is responsible for local employment compliance. |
| Who manages the employee? | The client company retains responsibility for the employee’s day-to-day work, performance and business objectives. |
| Is a local entity required? | No. Businesses can hire employees in South Korea without establishing a local legal entity. |
| Employment administration | The EOR manages employment contracts, onboarding, payroll, statutory contributions, benefits administration and offboarding in accordance with local employment laws. |
| Compliance support | Helps businesses comply with South Korea’s employment, payroll and labour regulations while reducing administrative complexity. |
| Best suited for | Companies testing the South Korean market, hiring remote employees, supporting business expansion or employing small local teams without establishing a subsidiary. |
Need support hiring in South Korea?
Link Compliance provides Employer of Record, payroll, HR outsourcing and recruitment solutions across South Korea and international markets. Whether you’re hiring your first employee or expanding your local workforce, our team helps you navigate local employment regulations with confidence.
Our Local Presence
Please find our South Korea office address below:
111, Ogeum-ro,
Songpa-gu, Seoul,
Republic of Korea
Email: info@linkcompliance.com
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Disclaimer: The content provided on this website is intended for informational purposes only and should not be considered legal or professional advice. Link Compliance makes no representations or guarantees regarding the accuracy, completeness, or reliability of the information, including any translations or interpretations. Laws and regulations are subject to change, and their application may vary. Users are strongly encouraged to consult with a qualified professional or legal advisor to address any specific questions, concerns, or issues arising from the information presented.
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