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South Korean Won is the official currency of South Korea. Its currency symbol is ₩, KRW.
Korean, known in the language itself as Kugo, is the official language of the Korean Peninsula.
The population of South Korea is 51.74 million (based on World Bank numbers as of 2021).
Salaries are paid monthly and are usually made on the last working day.
To start growing your team in South Korea, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary.
This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
South Korea maintains a modern and valuable infrastructure which eases the logistics of business, with internet and transport speeds among the fastest in Asia. High rates
of secondary education in South Korea have produced a highly skilled accessible workforce with high average incomes. Additionally, hiring in South Korea creates
possibilities for further business in Asia on account of its strategic location between China and Japan. Despite the government providing several schemes, such as free trade
zones and tax rebates, to encourage business and investment these incentives are often overshadowed by inefficient bureaucracy. Cultural differences should also be
considered when hiring in South Korea, as there are fundamental business principles that should be upheld including loyalty and a hierarchy based on age.
With the fastest internet speeds in Asia, South Korea is becoming more popular with remote workers. Despite the cost of living being higher than in other nearby Asian
countries, such as China and Laos, digital nomads continue to choose South Korea for its rich history, advanced technology, and increasingly popular culture. The
government has recognised the rise in remote working in South Korea and in response has created a designated digital nomad visa, encouraging more remote working in
the future.
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| National Pension: | 4.50% |
| National Health Insurance: | 3.55% |
| Long-term Care Insurance: | 0.46% |
| Employment Insurance: | 1.25% |
| Worker’s Compensation Insurance: | 0.76% - 18.6% |
| Resident Tax: | 0.50% |
Health Insurance.
Long Term Care Insurance.
Pension Insurance.
Unemployment Insurance.
Industrial Accident Compensation Insurance.
Private medical insurance.
Contracts in South Korea must include:
Under the LSA, all employers in Korea must enter into a written agreement with their employees, which details working conditions, wages, working hours and recess periods,
weekly paid days off, and paid annual leave.
Though probation period durations are not limited by law, typical probation periods in South Korea last between three and six months.
Emerald Technology can onboard employees in South Korea within 48 hours.
Healthcare in South Korea is universal and funded through a combination of government subsidies, outside contributions, and tobacco surcharges.
Pregnant employees are entitled to 90 days of maternity leave, with at least 45 consecutive days of leave to be taken after the birth. Depending on the size of the company, the leave will be paid for by the company or by Employment Insurance. Parents who have worked for an employer for more than one year and have children under six years old are eligible for up to one year of parental leave. This leave will be paid at 40% of normal monthly income, funded by Employment Insurance. Parents cannot take this leave at the same time.
There is no legal requirement for employers to provide leave to employees for non-work related illnesses or injuries. It is not uncommon, however, for companies to provide paid sick leave whether or not an injury or illness is work related. Employers are required under the Labor Standards Act to provide paid leave for work-related illnesses or injuries. Sick pay paid to an employee cannot be recovered from the state.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice Periods: | By law, employers must provide employees with at least 30 days’ notice, or equivalent payment in lieu of notice. However, employment contracts often provide for longer notice, up to twelve months in certain circumstances. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance Pay: | Full- time employees are entitled to receive severance pay equal to one month’s salary for each year of employment if they have worked for at least one year and they have worked for more than 15 hours per week or more than 60 hours per month. Severance pay must be paid within two weeks of termination. |
Employers are legally required to provide 15 days of paid annual leave to employees who have completed one year’s continuous service. An additional vacation day is paid for each two years of service thereafter, capped at 25 days.
South Korea’s minimum wage is KRW 6,470 per hour. The minimum wage rate is reviewed annually.
The maximum working week in South Korea is 52 hours. Under Korean labour law, employers must allow employees a minimum of one paid day off per week (generally Sunday). Many professional employees work a half-day on Saturday. Employees are allowed to work a maximum of 12 hours of overtime per week, which must be paid at 1.5x the employee’s normal hourly salary.
The payroll cycle in South Korea is generally monthly, and payments are usually made on the last working day.
Similar to other countries, South Korea has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.
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