Everybody’s been talking about this brilliant software engineer in South Korea who has the exact set of skills and personality to move your business forward. In fact, you learn that South Korea boasts world-class infrastructure, a digitally native workforce, and a serious appetite for innovation. But once you start digging into how to legally hire them, the process feels more like decoding a legal textbook than launching a new team member.
Don’t worry, you’re not alone. This guide gives you the clear, practical steps to hire and pay employees like that stellar software engineer in South Korea without falling into compliance traps or payroll headaches. Whether you’re onboarding your first Korean hire or building an entire team, here’s what you need to know.
The South Korean hiring process
South Korea takes employment seriously, and so should you. Labor laws are well-defined and deeply enforced, and the expectations around work culture are just as important. So before you send that offer letter, let’s walk through what compliant hiring looks like in South Korea.
Here’s a simplified checklist to keep you on track:
- Pick your hiring structure. Are you hiring directly, opening a subsidiary, or partnering with an Employer of Record (EOR)?
- Handle visa needs early. Hiring a foreign national? Double-check work visa requirements. Most roles need specific permits.
- Write a contract that holds up. Contracts must be written and signed before Day One. Include terms like salary, hours, work location, and severance.
- Register with the Korean authorities. That includes the National Tax Service (NTS) and other agencies tied to employment and payroll.
- Enroll in social insurance programs. All full-time employees must be covered. No exceptions.
- Set up payroll correctly. You’ll need to withhold the right taxes and file them on time.
The Labor Standards Act is the backbone of employment law in Korea. It defines things like working hours (52 per week max), overtime, paid leave, and mandatory severance. Contracts must be in writing, and they’re not just a formality—they’re legally required.
If you’re hiring foreign nationals, you’ll also need to navigate Korea’s visa system. According to the Korea Immigration Service, certain visa types, like the E-7 for skilled professionals, require proof that no suitable Korean candidate was available. That can slow things down, so plan ahead.
Choosing your hiring path: direct, local entity, or EOR
You’ve got three real options for hiring in South Korea:
- Direct employment. Only possible if you already have a local entity. You handle everything from taxes to benefits.
- Subsidiary setup. You form a Korean business entity (branch or corporation). This gives you complete control, but it takes time, money, and legal know-how.
- Employer of Record (EOR). The easiest route. The EOR becomes the legal employer on your behalf. They handle compliance, payroll, and benefits. You handle the day-to-day work.
Using Pebl’s EOR services alleviates the heavy HR admin lift and keeps you compliant. It’s fast, flexible, and scales with you.
Employment contracts and compensation that work in South Korea
The employment contract in South Korea connects a lot of pieces. Here’s what you need to include:
- Names of the employer and the employee
- Job title and location
- Working hours and schedule
- Pay details (amount, method, and timing)
- Leave policies and benefits
- Severance terms
- Termination conditions
The 2025 minimum wage is 9,860 KRW per hour, according to the Ministry of Employment and Labor. But market rates are typically higher. For example:
- Software engineers: KRW 50M–80M per year
- Marketing managers: KRW 40M–65M per year
- Customer support: KRW 30M–45M per year
Korean employees also expect statutory benefits like health insurance, pension, and paid time off. And severance? It’s one month’s pay for every year worked. Required by law.
Understanding Korean payroll compliance and payment methods
Payroll in Korea isn’t something to DIY. The system is rules-heavy, and the penalties for getting it wrong add up fast.
Here’s what you’ll need:
- A local bank account or authorized payroll partner
- Withholding tools that calculate taxes, social insurance, and deductions
- A payroll calendar aligned with government deadlines
Most companies pay on a monthly schedule, with salaries typically landing on the last business day of the month. Bonuses aren’t required but are common, especially around Lunar New Year or contract renewals.
Payroll calendar snapshot
- End of the month. Salary payments due
- 10th of the following month. File and pay taxes and social contributions
- Quarterly. Submit labor and income filings
Required contributions
- National Pension. 4.5% employer + 4.5% employee
- Health Insurance. 3.545% each side
- Long-Term Care. 12.81% of health premium (shared)
- Employment Insurance. ~1.5% employer + 0.8% employee
- Industrial Accident Insurance. Employer only
Korea’s income tax system is progressive, running from 6% to 45%. The National Tax Service has tools to help you calculate withholdings correctly.
When it comes to how to pay, direct deposit into local Korean bank accounts is the norm. But if you’re managing payroll from abroad, cross-border payments can cause delays or trigger extra fees. A global payroll provider helps reduce that friction.
Tips and resources for hiring in South Korea
Getting it right means getting local. Bookmark the Ministry of Employment and Labor for legal updates. Consider working with local employment lawyers or HR consultants when drafting policies or structuring your first few hires.
Templates can also be a huge time-saver. Use official contract templates where possible, and map your payroll calendar with real filing deadlines—not just internal due dates.
How EOR providers can make it happen
Here’s the shortcut: an EOR handles all the red tape so you don’t have to.
An EOR is a company that legally employs your team members in South Korea, even though they work for you. That means they handle:
- Contracts and documentation
- Payroll processing
- Tax and social security filings
- Benefits administration
- Compliance with Korean labor laws
You still manage your team. The EOR just makes sure everything behind the scenes is legal and smooth.
Pebl does this in 185+ countries, including South Korea. Whether you’re hiring one person or building an entire remote team, it’s a faster, safer way to scale.
Set your team up for success in South Korea
Hiring in Korea doesn’t have to be overwhelming. With the right plan and the right partner, you can move quickly, stay compliant, and build a great team.
Stick to the checklist. Use compliant contracts. Keep your payroll tight and timely. And when in doubt, lean on local experts or an EOR partner to help you move fast without cutting corners.
If you’re hiring in multiple Asian markets, you may also find our insights helpful on why the Four Asian Tigers should be on your radar and our step-by-step guide to cross-border hiring.
How Pebl helps you hire compliantly and pay accurately
Pebl helps you go global without going it alone. And we’re already there. Through our EOR services in South Korea, we help you hire, pay, and manage employees in South Korea without opening an entity or losing sleep over payroll mistakes.
We handle compliance, local banking, and in-country expertise, so you stay focused on growth. And your people? They get paid correctly, on time, and with the benefits they expect.
Ready to grow in Korea? Let’s talk.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
© 2025 Pebl, LLC. All rights reserved.
Topic:
Country Guides
