Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in Korean and use the South Korean Won currency (KRW).
Working Hours
The standard workweek in South Korea is eight hours per day, 40 hours per week.
Overtime
All hours exceeding the standard 40 hours are paid as overtime and are regulated by employment contracts/collective agreements. In general, overtime is paid at 150.00% of the standard salary rate, increasing to 200.00% for night work (after 10 pm). There is a maximum total number of overtime hours per week of 12 hours. A maximum of 52 hours can be worked in a week including overtime.
The South Korean government has unveiled the latest reforms to its current work week system that will extend working hours. The latest labor reforms will also allow businesses to manage employees’ overtime hours on either a weekly, monthly, quarterly, half-yearly, or yearly basis. Under the new regulations, employees may work a maximum of 140 hours of overtime per quarter, 250 hours in half a year, and 440 hours in a full year. The latest measures will expand the maximum weekly work hours to 69, up from the 52-hour limit as stipulated in the South Korean Labour Standards Act, although these are currently (in March 2023) being challenged and this element of the reform may yet be removed.
The new reform has introduced a system that guarantees a rest period of 11 hours between each working day and allows these hours to be used consecutively with annual paid leave entitlements, but would still require an agreement between the employer and the employee.
Public Holidays
Certain Public holidays when falling on a weekend are moved to the following working day as a day off in lieu.
For the year 2024:
- 1 Jan: New Year’s Day
- 9 Feb: Lunar New Year
- 10 Feb: Lunar New Year
- 11 Feb: Lunar New Year
- 12 Feb: Lunar New Year (Day off in lieu)
- 1 Mar: Independence Movement Day
- 10 Apr: Election Day for the 22nd National Assembly
- 1 May: Labor Day
- 5 May: Children’s Day
- 15 May: Buddha’s Birthday
- 6 Jun: Memorial Day
- 15 Aug: Independence Day of Korea
- 16 Sep: The Harvest Moon Festival
- 17 Sep: The Harvest Moon Festival
- 18 Sep: The Harvest Moon Festival
- 3 Oct: National Foundation Day
- 9 Oct: Hangul (Korean characters) Day
- 25 Dec: Christmas Day
Private companies with five to 29 employees must now provide paid days off for public holidays as well as substitute holidays (that were previously unpaid).
Annual Leave (Vacation)
Paid leave in South Korea is outlined in the employment contract as a minimum of 11 days paid leave a year, following the completion of one year of service, in addition to public holidays. This leave increases to 15 days of paid leave when the employee is in the second and third years of service. From the third year and onwards, one additional day of paid leave is added to the entitlement upon completion of every two years of service up to a maximum of 25 days paid leave. Carryover allowance is per employer discretion.
Sick Days
There is no statutory sick leave entitlement in South Korea. An employer, however, shall compensate an employee who is undergoing medical treatment in an amount equal to 60% of the employee’s average wage during medical treatment.
Maternity Leave
All female employees are eligible for maternity benefits consisting of 90 days of paid leave, increasing to 120 days for multiple/complicated births. The maternity leave is generally taken 45 days before the due date and 45 days after, but a minimum of 45 days leave must be used following the birth (a maximum of 45 days can be used before the birth). The maternity payment is made by a combination of social security/governmental payments and employer payments. For larger companies in South Korea, the employer should pay the maternity pay at 100.00% of the regular salary rate for the first 60 days. After which, the social security/government will provide support allowance for the remaining 30 days (capped two million KRW per 30 days) and with the employer having the option to provide the sum of money for any difference to the employee’s regular salary rate. For small companies, the social security/government supports the employer throughout the 90 days.
Paternity Leave
The father is entitled to mandatory paid paternity leave of a total of 10 days, five paid by the employer and five days paid by the social security/government, and must be used within the period of 90 days following the day or birth.
Parental Leave
Parents of children under the age of eight can request a period of full-time or part-time childcare leave of up to one year. A request for leave should be sent to the employer at least 30 days before the start of the leave period, with an allowance paid by the social security/government.
Should one or both parents take their parental leave during the first year of their child’s birth, both parents will be paid 100% of their monthly income, rather than as previously, only one parent received 100% while the other received a reduced payment of 80%.
Other Leave
Work Injury Leave– for any work-related injury, employees are entitled to receive three months of paid leave with 70.00% of the employee’s regular salary.
Menstrual Leave – for female employees, they are entitled to 1 day (menstrual) leave per month.
Family-Care Leave – Unpaid leave for a period of 90 days per year to provide support and care to family members including grandparents, parents, spouse, children, grandchildren and a spouse’s parent in case of their sickness, injury, or old age.
Employee Severance and Terminations
Termination Process
The termination process is standard in South Korea and is usually based on two main reasons for termination. There is a requirement for the employer to prove a justifiable reason to terminate and that this reason is legally acceptable, as depicted within the Korean Labour Standards Act. Also, when laying off an employee in Korea, the employer must prove that an urgent managerial necessity exists before an employee is laid off.
Notice Period
According to South Korean general labor law, there is no mandatory notice period unless stipulated by your employment contract/company manual. However, it is common practice to provide one month’s notice. See EoR page for specific EoR regulations.
Severance Pay
Employers must adopt a retirement benefit system. The default is the statutory severance pay system, whereby, upon the termination of employment for any reason (including employee resignation), where the employee has been employed for at least one year, the employee is entitled to severance pay of 30 days’ average wages (ie, all wages generally including any bonus paid within the previous 3 months) for each year of continuous service.
Probation Period
Probation periods in South Korea for permanent employees are optional and generally between one and three months. It is rare for employers to terminate a contract once the probation/training has been completed since the company must pay unemployment.
Payroll Cycle
The payroll cycle in South Korea is generally monthly and payments are usually made on the last working day.
The National Minimum Wage in South Korea is 9,860 KRW per hour. The minimum wage is applicable to all companies and employees (regardless of residency status).
13th Salary
There is no legislation for 13th-month payments in South Korea.
Contributions
Employer Payroll Contributions
VISA
Any foreigners coming to work in South Korea will need to be registered with the local immigration authorities within the first three months of their stay. The type of work permit and employment visa differs by the role in which the employee will be undertaking. To allow an employee to stay in South Korea for more than 90 days, the appropriate visa needs to be sought:
- E-1 Professor Visa is aimed at foreigners to deliver lectures or do research in their field; it is valid for one year and can be renewed annually.
- E-2 Foreign Language Instructor is aimed at foreigners who wish to teach a foreign language at a company/school/education infrastructure. It is valid for two years and can be renewed every two years.
- E-3 Research is aimed at foreigners invited by a public or private institution to research natural science or advanced technology; it is valid for one year and can be renewed annually.
- E-4 Technological Guidance is aimed at foreigners invited by a public or private institution to provide expertise in natural science or high technology; it is valid for one year and can be renewed annually.
- E-5 Special Profession is aimed at foreigners that are architects, lawyers, physicians, accountants, and other internationally licensed professionals and hold Korean government permission to practice their field of expertise; it is valid for one year and can be renewed annually.
- E-6 Culture and Art are aimed at foreigners who participate in musical, artistic, and literary activities; it is valid for one year and can be renewed annually.
- E-7 Specially Designed Activities are aimed at foreigners invited to participate in activities designed by the Korean Ministry of Justice through a public or private organization. It is valid for one year and can be renewed annually.
- D-5 Long-Term New Coverage is aimed at reporters working for foreign media (broadcast, newspapers, magazines, etc.). The single-entry visa is valid for three months and can be renewed in one-year intervals.
- Alien Registration Card (ARC) Most people who are staying in South Korea for more than six months also need to obtain their Alien Registration Card (ARC).
VAT
The standard rate of VAT in South Korea is 10.00%.