SOUTH KOREA PEO & EOR
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As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in South Korea today with Gibson Watts Global.
DID YOU KNOW
- New-born babies in South Korea are one year old at birth! South Koreans also turn a year older on January 1st each year. In South Korean society, birthdays and age aren’t linked like they are in Western nations.
- Alongside its many exports, South Korea’s popular culture is also making a significant impact around the world. K-Pop music and television productions (such as the hit series Squid Game) are continuously receiving international acclaim.
- South Korea consumes more alcohol than any other country in Asia! In South Korea, it is common to celebrate most holidays with a drink.
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South Korea PEO Services
Booming manufacturing and service industries
Working in South Korea
Employment Information
With a GDP of $1.631 trillion, South Korea is one of the largest economies in Asia and experiences consistent growth each year, mostly because of its foreign exports. South Korea has a mixed economy, combining free-market capitalism with centralised government regulation. This nation is also a part of the Asia Pacific Economic Cooperation (APEC) and the Asia-Pacific Trade Agreement (APTA).
The average working hours for South Korean workers was 163.6 per month in 2020 and the country has the second-longest working hours in the OECD. South Korea’s average working hours have decreased following the South Korean Labour Standards Act (introduced in 2018) which restricted an employee’s maximum working hours from 68 to 52 per week.
Businesses who are hiring staff in South Korea must observe a variety of payroll compliance regulations. This includes monthly withholding obligations and employee benefits for workers.
Payment of salaries usually take place on the last working day of the month in South Korea.
Working hours
Employees in South Korea work an eight-hour day, with a maximum of 40 hours per working week. The working day usually runs from 9am to 6pm
Leave allowances
- Holiday leave: Employees in South Korea will accumulate 15 days of paid annual leave after their first year of continuous service for the same employer. For each two years of service after this, employees will earn an additional day of paid leave. Employees usually take annual leave for sick leave unless a company has a specific leave policy on that.
- Sickness leave: This is not a statutory requirement for employers in South Korea; however, employees are entitled to paid leave in the event of work-related injuries or illnesses
- Maternity / paternity leave: For a single baby, 90 days’ leave shall be given to the employee. For multiple babies, 120 days’ leave shall be given to the employee. Male employees can take up to 10 days of paternity leave within 90 days of the birth. Both female and male employees can take up to 1 year of unpaid childcare leave if a child is less than 8 years old.
- Menstrual leave: Female employees are entitled to one day of menstrual leave per month, if required
- Bereavement leave: This is not required by South Korean law, so is at the discretion of the employer
Taxes
- Employees: South Korea’s income tax applies to an employee’s wage and salary. The income tax is progressive and ranges from 6% to 45%, depending on the amount of earnings. Non-residents working in South Korea are generally subject to the same income tax requirements as residents, however foreign workers have the alternative option to apply a flat-rate tax of 19% to their total Korean-sourced income.
- Employers: Employers are obliged to make mandatory contributions towards four social insurance programs for employees in Korea: National Pension; National Health Insurance; Unemployment Insurance; and Industrial Accident Compensation Insurance. Monthly retirement pension contributions are also mandatory. Retirement pensions are equal to 8.33% (1/12) of the average salary, or ordinary wage (whichever is larger).
Visas
Work permits are required for all non-Korean workers. The type of work permit depends on the type of work the employee is undertaking. The processing time can vary from two weeks to two months, so it is advisable to start the process well ahead of the employment.
Public Holidays
- New Year’s Day
- Seotdal Geumeum
- Korean New Year
- March 1st Independence Movement Day
- Children’s Day
- Buddha’s Birthday
- Memorial Day
- National Liberation Day of Korea
- Chuseok
- National Foundation Day
- Hangul Proclamation Day
- Christmas Day
Cultural Information
South Korean culture is significantly influenced by Chinese and Japanese customs, as recognised in many of the country’s traditions, which have roots in Confucianism. South Korea has a diverse religious population: almost 50% of the population has religion (Protestant 20%, Buddhist 16%, Catholic 11%). The number of people who follow the Christian religion is significantly higher. Respect for elders and family is a large part of South Korean culture. Additionally, South Korea has close ties with the United States, and embraces many western cultural practices as a result. South Korea’s official language is Korean, and the nation hosts a population of around 52 million.