EMPLOYER OF RECORD IN SOUTH KOREA
Expand your orbit in South Korea.
Grow your team in South Korea with Pebl’s Employer of Record (EOR) solution. We handle all hiring, onboarding, payroll, taxes, immigration, and benefits, making it simple for businesses to hire distributed talent in South Korea.
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South Korea at a glance
KRW
Currency, Korean won, ₩
51.3M
Population
1.6B
Economy
What it’s like to hire in Korea?
- Korea is one of the Four Asian Tigers and has the world’s 14th-largest economy. It is classified as a “high-income” country by the OECD (Organisation for Economic Co-operation and Development). Benefiting from rapid economic growth since the 1980s, Korea is now one of the world’s most technologically advanced economies.
- The World Bank ranks Korea as the world’s fifth-easiest country in which to do business. The Korean government has cultivated a business environment friendly to foreign companies, and the country enjoys strong economic relationships with nearly every other Asian country.
- Thanks in large part to its prominence in technology manufacturing and exports, Korea’s private sector is thriving. Home to global brands like Samsung, LG, and Hyundai, Korea is one of the world’s most prominent manufacturers of electronics and semiconductors.
- Korea has a highly educated workforce, which benefits from significant inward investment from the Korean government.
- The World Economic Forum ranks Korea as the sixth-most innovative country in the world. Similarly, the country ranks second globally in both patent applications per capita and research and development expenditures as a percentage of GDP.
- Korea’s populace is exceptionally technologically literate. The country has more fiber optical internet connections than any country in the world, and 96% of its population regularly uses the internet. Korea also ranks second in the world in electricity access.
Employment Contracts in Korea
- Hourly minimum wage is KRW 8,590.
- Monthly minimum wage is KRW 1,795,310.
Paid Time Off & Benefits
- Employers must provide female employees 90 days for maternity leave (120 days in the case of twins). Female employees are required to take at least 45 days off following birth (60 in the case of twins).
- An employer must pay an employee salary for 60 days of the employee’s leave (75 in the case of twins).
- The government is responsible for paying the remaining days.
Average workweek hours
- Employees in Korea are limited to 40-hour work weeks and eight-hour workdays under the LSA.
- Employees have the right to work an additional 12 hours of overtime per week, at their discretion. Employers must pay employees 150% of their normal wages for overtime hours worked.
- Employees are entitled to 150% of their ordinary wages during night work, which ranges between 10 PM and 6 AM.
Employer Contributions
Employer Contribution | Burden |
|---|---|
National Pension | 4.5% |
National Health Insurance | 3.68% |
Employment Insurance | 1.05%-1.65%* |
Accident Insurance | .73%-18.63%** |
Total | 9.95%-28.45% |
* Percentage dependent upon a company’s industry and number of employees
** Percentage dependent upon a company’s industry
Choose Pebl
Expanding into an international market like Korea marks an exciting new chapter for your business. But global expansion also requires care and intention, as maintaining compliance with business and labor laws can be complex and time-consuming. That’s where Pebl comes in.
Our International PEO solution covers every detail required for compliance in Korea, ensuring you’re properly hiring, onboarding, and managing supported employees. By handling all the nuances required to smoothly operate in Korea, we allow you to focus on what really matters–ensuring your business thrives in a new market.
International PEO is up to 60% less costly and 90% faster than entity establishment. As a result, it saves you valuable time and money that you can reinvest back into core business initiatives. No matter what your long-term goals are or how many team members you’re trying to support, we have the expertise and experience to back you every step of the way.
Ready to see how Pebl’s International PEO can streamline your expansion? Reach out today.
Read more about hiring and paying in South Korea
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