What should I know about hiring in South Korea?
If you are considering hiring in South Korea, there are several important legal and operational factors to keep in mind. Employment relationships in South Korea are governed by a comprehensive labour law framework led by the Labor Standards Act (LSA), which regulates employment contracts, working hours, wages, termination procedures, and employee protections.
Employment contracts should clearly define key terms such as wages, working hours, leave entitlements, workplace location, and job responsibilities. South Korean labour law strongly prioritises written or electronic employment agreements to ensure transparency and compliance.
South Korea offers a highly educated workforce, advanced infrastructure, and a strong business environment, making it an attractive destination for international hiring. However, employers must comply with strict labour regulations, particularly around dismissal procedures, overtime, severance pay, and employee protection
Why is South Korea a good choice for finding remote employees?
South Korea is an attractive market for hiring remote employees due to its highly skilled workforce, advanced digital infrastructure, and strong culture of innovation.
The country has a large pool of professionals experienced in industries such as technology, engineering, finance, gaming, customer support, and digital services. Many South Korean professionals are highly educated and accustomed to working in fast-paced international environments.
South Korea also benefits from reliable internet infrastructure and strong digital connectivity, making remote collaboration efficient and productive. Combined with a stable economy and strong legal protections for workers, the country offers an excellent environment for building remote and distributed teams.
How can Native Teams help you hire in South Korea?
Hiring in South Korea requires a strong understanding of local labour laws, especially regarding employment contracts, overtime rules, severance pay, and termination procedures.
With Native Teams’ Employer of Record (EOR) services, you can hire employees in South Korea without opening a local entity. We manage employment contracts, payroll, compliance, tax obligations, and ongoing legal requirements on your behalf.
This allows your company to expand into South Korea quickly and compliantly while reducing administrative burden and legal risk.
Hire your first South Korean employee with Native Teams.
Legal requirements for hiring in South Korea
Below are the most important legal considerations when employing workers in South Korea:
Legal framework
South Korea’s labour law framework is comprehensive and designed to protect employee rights while ensuring fair working conditions. Employment relationships are primarily governed by the Labor Standards Act (LSA), supported by additional legislation regulating collective labour relations, workplace safety, minimum wage, equal employment opportunities, and work-life balance.
The legal system is built around several key principles, including worker protection, fairness in employment contracts, and the application of the most favourable conditions for employees when conflicts arise between laws and contractual provisions.
Important legislation includes:
- Labor Standards Act (LSA)
- Minimum Wage Act
- Trade Union and Labor Relations Adjustment Act
- Industrial Safety and Health Act
- Act on Equal Employment Opportunity and Work-Family Balance Assistance
South Korean labour law also places strong emphasis on procedural fairness, especially in cases involving dismissal, disciplinary action, or redundancy.
Types of employment contracts
Employment contracts in South Korea can generally be divided into the following categories:
Regular (permanent) employment contracts: Regular contracts are the most common and provide indefinite employment with full statutory protections.
Fixed-term employment contracts: Fixed-term contracts are typically used for temporary or project-based roles and are generally limited to a maximum duration of two years. If the contract exceeds this period, the employee may become entitled to regular employment status unless exemptions apply.
Part-time employment contracts: Part-time employees are protected under labour law and must receive proportional wages and benefits based on their working hours. Discrimination between part-time and full-time employees performing similar work is prohibited.
Dispatched worker contracts: Dispatched workers are employed by staffing agencies but perform work for a third-party company. These arrangements are strictly regulated, and the client company may be required to hire the worker directly if the assignment exceeds the legal limit.
Probationary employment agreements: Probationary periods are commonly included within regular or fixed-term contracts and remain subject to the same labour protections as other employment relationships.
Content of an employment contract
Employment contracts in South Korea must clearly define the rights and obligations of both parties. Under the Labor Standards Act, employers are required to provide written or electronic documentation containing key employment terms.
An employment contract should typically include:
- Employee and employer details
- Job title and responsibilities
- Salary structure and payment schedule
- Working hours and overtime conditions
- Annual leave and statutory leave entitlements
- Workplace location
- Contract duration
- Rest days and public holidays
- Probationary period terms (if applicable)
- Additional policies or contractual obligations
Employers may also include clauses related to confidentiality, intellectual property, performance evaluations, or non-compete obligations, provided they comply with labour laws.
Download a free employment contract for Costa Rica through Native Teams.
Oral, written, or electronic employment contracts
South Korean labour law recognises oral, written, and electronic employment contracts. However, written and electronic agreements are strongly prioritised and effectively required for documenting essential employment conditions.
Employers must provide employees with written or electronic confirmation of important terms such as wages, working hours, leave entitlements, and working conditions.
Electronic employment contracts are legally recognised under the Framework Act on Electronic Documents and Transactions, provided they meet the same legal standards as written agreements. Failure to provide a compliant written or electronic contract may result in administrative fines and legal disputes.
Probationary period
Probationary periods are commonly used in South Korea to assess an employee’s suitability for a role. Although probation is not considered a separate employment category under the law, probationary employees are fully protected under the Labor Standards Act.
Employers must clearly define the probationary period and evaluation criteria within the employment contract. Probation periods are typically between three and six months. During this period, employees remain entitled to statutory protections such as minimum wage, overtime pay, leave entitlements, and protection against unfair dismissal.
While employers may have greater flexibility during probation, dismissals must still be fair, reasonable, and properly documented.
Working hours
Working hours in South Korea are regulated under the Labor Standards Act to balance employee well-being with operational flexibility. Standard working hours are limited to 8 hours per day, i.e., 40 hours per week. Employers must provide rest breaks of at least:
- 30 minutes for every four hours worked
- One hour for every eight hours worked
Overtime work is limited to 12 additional hours per week unless special approval is granted by labour authorities in exceptional circumstances. Overtime must be compensated at a minimum of 150% of the employee’s ordinary wage. Employees are also entitled to at least one paid weekly rest day.
Flexible work arrangements and discretionary work systems are permitted under South Korean labour law, provided they are agreed upon in writing.
Night work
Night work in South Korea refers to work performed between 10:00 PM and 6:00 AM. Employees performing night work are entitled to an additional 50% wage premium on top of their ordinary pay rate. This requirement applies to full-time, part-time, and fixed-term employees.
Special protections apply to vulnerable groups. Pregnant employees may only perform night work with written consent, while employees under the age of 18 are generally prohibited from working night shifts without special approval.
Employers are also expected to implement appropriate safety measures for employees working during late hours.
Breaks and types of leaves
South Korean labour law provides employees with a wide range of statutory leave entitlements and rest protections. Employees are entitled to daily rest breaks and at least one paid weekly rest day.
Additional statutory leave types include annual paid leave, maternity leave, paternity leave, parental leave, family care leave, and special leave for events such as marriage or bereavement. Employers must maintain proper leave records and ensure employees are informed about their entitlements.
Annual leave
Employees who complete one year of continuous service are entitled to 15 days of paid annual leave. Employees with less than one year of service accrue one day of paid leave for each month worked. Long-serving employees receive additional leave entitlements, with one extra day granted for every two years of service after the initial three years, up to a maximum of 25 days.
Employers are legally required to encourage employees to use their annual leave. If unused leave remains due to the employer’s failure to facilitate its use, employees may be entitled to compensation for unused days.
Salary
South Korean labour law requires employers to pay salaries fairly, transparently, and on time. Salary generally includes base pay, overtime compensation, night work allowances, holiday pay, and bonuses and allowances.
Employers must pay wages at least once per month on a fixed payday and directly to the employee. South Korea also operates a national minimum wage system under the Minimum Wage Act, which applies to all employees, including part-time and foreign workers. Employers are required to maintain detailed payroll records and comply with overtime and premium pay regulations.
To calculate the salary and taxes in South Korea, click here.
Sick leave
South Korean labour law does not explicitly require employers to provide statutory sick leave. However, many employers provide paid or unpaid sick leave through internal company policies, employment contracts, or collective agreements.
If an employee suffers a work-related injury or illness, employers must provide paid leave and support under occupational safety and industrial accident compensation laws.
Parental leave
Employees who have worked for their employer for at least one year are generally entitled to parental leave to care for a child under the age of eight or below the second grade of elementary school. Parental leave may last for up to one year per child.
During parental leave, employees may receive financial support through South Korea’s Employment Insurance Fund. Compensation is typically:
- 80% of the average wages during the first three months
- 50% of the average wages thereafter, subject to government caps
Employers are prohibited from discriminating against employees who exercise parental leave rights. Flexible parental leave arrangements, including part-time parental leave, may also be available by agreement.
Paternity and maternity leave
Female employees in South Korea are entitled to 90 days of maternity leave, with at least 45 days required after childbirth. In cases of multiple births, maternity leave increases to 120 days.
Employers must generally pay full wages for the first 60 days of maternity leave, while the remaining period is funded through employment insurance. Fathers are entitled to 10 days of paid paternity leave, which must usually be taken within 90 days of the child’s birth.
Employees returning from maternity or paternity leave are entitled to return to their original role or an equivalent position without loss of benefits or seniority.
Methods of employment termination
Employment relationships in South Korea may end through voluntary resignation, employer dismissal, redundancy, expiration of a fixed-term contract, mutual termination agreement, and retirement.
Termination procedures are heavily regulated under the Labor Standards Act. Employers must follow fair procedures and comply with notice, documentation, and severance obligations. Outstanding wages, unused leave compensation, and severance payments must generally be settled within 14 days of termination.
Ordinary dismissal by the employer
Employers in South Korea may only dismiss employees for justifiable reasons. Valid grounds for dismissal may include serious misconduct, poor performance, repeated breaches of company policy, and business restructuring or economic necessity.
Dismissals must follow procedural fairness requirements, including giving employees an opportunity to respond to allegations and providing written explanations when requested. Employees are protected from dismissal during certain protected periods, including maternity leave and work-related illness recovery.
Notice period and challenging the dismissal
Employers are generally required to provide at least 30 days’ notice before terminating employment or pay compensation in lieu of notice. Exceptions may apply in cases involving severe misconduct or short probationary employment.
Employees who believe they were unfairly dismissed may challenge the termination through the Labour Relations Commission or civil courts. If a dismissal is found to be unlawful, remedies may include reinstatement, compensation, or payment of damages.
Rights and obligations of unemployed persons
South Korea’s Employment Insurance system provides unemployment benefits and reemployment support to eligible individuals. Employees may qualify for unemployment benefits if they:
- Were insured for at least 180 days within the previous 18 months
- Lost employment involuntarily
- Actively seek new employment
Benefits are generally calculated as a percentage of the employee’s average wage and may be paid for between 90 and 240 days, depending on eligibility factors. Unemployed individuals are also expected to actively participate in job search activities and vocational training programmes.
Severance pay
Severance pay is mandatory in South Korea for employees who have completed at least one year of continuous service. Employees are generally entitled to severance equal to one month’s average wage for each year of employment.
Severance pay applies in cases including voluntary resignation, employer dismissal, retirement, expiration of fixed-term contracts, and mutual termination agreements. The calculation is based on the employee’s average wages during the three months preceding termination.
Prohibition of competition
Non-compete clauses are recognised under South Korean law but are only enforceable if they reasonably protect legitimate business interests. Courts typically evaluate factors such as duration of the restriction, geographical scope, type of restricted activities, and whether the clause is necessary to protect confidential information or trade secrets
Overly broad or unreasonable restrictions are unlikely to be enforceable. Employment contracts commonly also include confidentiality and non-disclosure obligations to protect proprietary information.
Remote working policy
Remote work in South Korea is regulated under general labour laws and supported by emerging governmental guidelines. Remote working arrangements should be agreed upon in writing and clearly defined.
- Working hours
- Job responsibilities
- Equipment provision
- Expense reimbursement
- Data protection requirements
- Communication expectations
Remote employees remain fully protected under South Korean labour law, including rules relating to wages, overtime, annual leave, and working hours. Employers must also balance employee monitoring practices with privacy protections.
Responsibilities within a remote work arrangement
Both employers and employees have responsibilities within remote work arrangements.
Employers are generally responsible for:
- Providing or reimbursing for necessary equipment
- Protecting company data and systems
- Establishing clear remote work policies
- Supporting productivity and communication
- Maintaining legally compliant working conditions
Employees are expected to:
- Follow company policies and cybersecurity requirements
- Maintain a safe home working environment
- Report work-related incidents or hazards
- Use company equipment responsibly
Clear documentation and communication are essential to minimise disputes and ensure compliance.
Health and safety at home
South Korean health and safety regulations extend to remote working environments. Employers are expected to provide guidance on creating safe and ergonomic home workspaces and may need to provide necessary equipment such as desks, chairs, or monitors.
Work-related injuries occurring during remote work may qualify as occupational accidents if they arise during working hours and are connected to job duties. Employees also share responsibility for maintaining safe working conditions and promptly reporting hazards or injuries.
Intellectual property rights
In South Korea, intellectual property created during the course of employment generally belongs to the employer if it was developed within the scope of the employee’s duties or using company resources.
Employment contracts commonly include intellectual property assignment and confidentiality clauses to clarify ownership rights and protect trade secrets. Employees may retain ownership of creations developed independently outside the scope of their employment and without using employer resources.
South Korean law also provides protections for employee inventors, including rights to reasonable compensation where inventions generate significant commercial value for the employer.
What are the advantages of hiring employees from South Korea vs other countries?
Hiring employees from South Korea offers access to a highly educated, technologically advanced, and globally competitive workforce.
South Korea is particularly strong in industries such as technology, gaming, engineering, manufacturing, finance, and digital services. Employees are generally highly skilled, adaptable, and experienced with international business environments.
The country also benefits from world-class digital infrastructure, a stable economy, and strong legal protections, making it an attractive destination for remote hiring and international business expansion.
Why use Native Teams for hiring in South Korea?
Native Teams lets you employ team members ‘like a local’, allowing you to build and manage a global workforce without the complexity of setting up local entities. Here are some reasons why businesses choose Native Teams for hiring in South Korea:
- No paperwork: We handle all employment documentation and compliance requirements.
- Payroll management: We manage payroll processing and statutory obligations.
- No local entity required: Expand into South Korea without opening a company locally.
- Online onboarding: Smooth and compliant employee onboarding processes.
- Compliance expertise: Support with local labour laws and employment regulations.
- Ongoing HR support: Assistance with contracts, leave management, and employee administration.
- Reduced legal risk: We help ensure your employment practices remain compliant.
- Local expertise: Guidance on navigating South Korean employment requirements and workforce management.
