EOR Service in South Korea

Hire, Onboard and Pay Employees in South Korea Quickly and Efficiently

Hiring in South Korea at a glance

CURRENCY
South Korean Won (KRW)
working hours
40 hours/ week
public/bank holidays
17 Days
capital
Seoul
language
Korean
date format
yyyy/mm/dd
remote workers
1.2M
tax year
1 January- 31 December
minimum hourly salary
No minimum wage
CURRENCY
South Korean Won (KRW)
working hours
40 hours/ week
public/bank holidays
17 Days
capital
Seoul
language
Korean
date format
yyyy/mm/dd
tax year
1 January- 31 December
payroll frequency
Monthly
GDP
$1,665.25B (2022)

Employer of Record in South Korea

South Korea's remarkable economic has been driven by export-oriented industries and a skilled, educated workforce, backed by a business-friendly government. In this dynamic environment, Employer of Record (EOR) services are essential partners for businesses entering the South Korean market. Leveraging the nation's highly skilled workforce, EOR services navigate government regulations and facilitate seamless entry, ensuring compliance with labor laws and taxation. By managing employment functions such as payroll and benefits administration, EOR services enable businesses to focus on core competencies, fostering agility in response to the dynamic economic landscape.


Why use South Korea EOR?

For employers unfamiliar with South Korea’s labor landscape, navigating the rough waves of its labor slows can be challenging.

Usually, labor laws in business-friendly nations (like in the USA, and Singapore) favor employers. However, South Korea has continued to maintain a pro-business environment while also strictly regulating working hours, minimum wages, and terminations. For example, employers in the USA need not offer severance pay and can fire employees at will. However, in South Korea, employers are statutorily required to offer severance pay to employees who have worked for a company for one year or more, regardless of the reason for termination. Moreover, South Korea has a strong tradition of labor unions and collective bargaining, playing a significant role in negotiating working conditions, wages, and benefits. 


Hiring compliant with these laws can be difficult for employers unfamiliar with these nuances. Partner with a South Korea employer of Record (EOR) like Gloroots to onboard local talent compliantly in under a day. We make your hiring compliant with local labor laws so that hiring and payrolling become less complex and more streamlined. Our South Korea EOR will ensure full compliance with local employment obligations, and you can fully focus on core business functions

EOR Costs in South Korea

Usually, EORs charge based on two pricing models – fixed and variable. An EOR based on the fixed pricing model charges a transparent fee of $200 – $1000 per employee per month.

With Gloroots, you pay a fixed fee for our EOR services. Unlike EORs that offer variable pricing (where pricing changes with the employee’s salary), our prices are fixed no matter what the number of employees you onboard using our platform. The final cost depends on the complexity of employment laws of the employee’s jurisdiction.

Our prices are designed to ensure that you get the most out of your employee spending. 

Key Metrics For Foreign Employers 

South Korea ranks 24th in INSEAD’s 2023 Global Talent Competitiveness Index. For employers planning to hire from South Korea, here are some key indicators of talent competence.

Factors Global Ranking Interpretation
Rule of law 23 Indicates effectiveness of law enforcement
Labour-employer cooperation 117 Indicates positive labor-employee relationships
Reading Maths, and Science 5 Indicates average scores in OECD's survey of 15-year old students
University Ranking 9 Indicates average QS rankings
Labour productivity per employee 30 Indicates total output by the total labour input used to produce that output
Ease of finding skilled employees 14 Indicates findability of skilled talent
Workforce with tertiary education 4 Indicates % of workforce with PG degrees
Digital Skills 24 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in South Korea.

Why work in South Korea?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in South Korea

Expanding your team in South Korea demands strategic hiring aligned with business goals. Navigate the intricacies of local employment seamlessly with Gloroots's global Employer of Record (EoR) service. Entrust experts to manage compliance, payroll, tax, and benefits, enabling you to concentrate on nurturing your team and driving company growth in the dynamic South Korean market.

Risks of misclassification

Misclassifying employees in South Korea poses risks, potentially depriving them of legal protections. Engaging a PEO/EOR in the country mitigates these risks by ensuring compliance with labor laws, accurate classification, precise payroll management, and comprehensive benefits. This strategic approach allows businesses to concentrate on core operations while entrusting employment responsibilities to seasoned experts.

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Avoid hefty penalties with Gloroots.

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Employing in South Korea

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Employer

Component Contribution Rate Income Range
National Pension 4.50% Taxable monthly income capped at 5,900,000.00 KRW . Lower Limit of Monthly base is KRW 370,000.
National Health Insurance 3.545% Monthly contribution capped at 8,203,680.00 KRW
Employment Insurance 1.15% – 1.75% Varies by industry, not capped
Long Term Care Insurance 0.455% Monthly contribution capped at 345,600 KRW
Worker Accident Compensation 0.644%-18.60% Rate dependent on the type of business, not capped
Resident Tax 0.50%
Total Employment Cost 10.794% – 29.35%

Employee

Component Contribution Rate Income Range
National Pension 4.50% Taxable monthly income capped at 5,900,000 KRW.
Lower Limit of Monthly base is 370,000 KRW
National Health Insurance 3.545% Monthly contribution capped at 3,911,280 KRW
Long Term Care Insurance 0.455% Monthly contribution capped at 345,600 KRW
Employment Insurance 0.90% Varies by industry, not capped
Total Employee Cost 9.4%

Employee Income tax

Taxable Income Range (ZAR) Tax Rate
Up to 14 million 6.00%
14 million to 50 million 15.00%
50 million to 88 million 24.00%
88 million to 150 million 35.00%
150 million to 300 million 38.00%
300 million to 500 million 40.00%
500 million to 1 billion 42.00%
1 billion and above 45.00%

Local Income SurTax

  • Up to 12 million KRW: 0.60% tax rate
  • 12 million to 46 million KRW: 1.50% tax rate
  • 46 million to 88 million KRW: 2.40% tax rate
  • 88 million to 150 million KRW: 3.50% tax rate
  • 150 million to 300 million KRW: 3.80% tax rate
  • 300 million to 500 million KRW: 4.00% tax rate
  • 500 million to 1 billion KRW: 4.20% tax rate
  • 1 billion KRW and above: 4.50% tax rate

Alternative Minimum Tax

(business income of a resident individual and Korean-source business income of a non-resident individual):

The greater of: 45% of income tax liability (35% applied to income tax liabilities of up to KRW 30 million) before exemptions

Actual tax after exemptions

Non-Resident Tax:

  • Flat rate: 19.00%
  • Inclusive of local income tax: 20.90%

Separation

Termination 

The termination process in South Korea follows a standard procedure primarily based on two main grounds for termination. Employers are obligated to demonstrate a justifiable and legally acceptable reason for termination, as outlined in the Korean Labour Standards Act. Additionally, when initiating a layoff, employers must establish the presence of an urgent managerial necessity as a prerequisite for employee termination.

Severance Pay

Employers are required to implement a retirement benefit system, with the statutory severance pay system serving as the default. According to this system, when employment is terminated for any reason, including employee resignation, and the employee has been in service for at least one year, they are entitled to severance pay equivalent to 30 days' average wages for each year of continuous service. Average wages encompass all earnings, including bonuses received within three months.

Notice Period

Under South Korean general labor laws, a mandatory notice period is not required unless specified in the employment contract or company manual. Nevertheless, it is customary to give one month's notice as a standard practice.

Probation period

Probation periods for permanent employees in South Korea are discretionary and typically range from one to three months. It is uncommon for employers to terminate a contract after the probation or training period has concluded due to the obligation to provide unemployment compensation.

Start Hiring in South Korea today

When expanding globally, ensuring compliance poses unique challenges. Employers must navigate employment laws, adhere to payroll protocols, uphold DE&I standards, comply with GDPR and data protection regulations, and more. While establishing local entities and commencing hiring can be daunting, staying abreast of a dynamic compliance landscape is even more demanding.

Gloroots streamlines this process, offering a centralized platform to manage these tasks effortlessly. Our in-house experts provide comprehensive protection against cross-border employment and payroll compliance risks. We assist in crafting employment contracts, ensuring timely payments, and delivering compliant benefits, allowing you to concentrate solely on talent screening.

Our commitment is to provide a seamless global employment experience, alleviating stress for both you and your employees.

Connect with our experts today to launch your global recruitment initiative.

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Experience Seamless Hiring in South Korea?

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