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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
South Korea is recognised as one of the Four Asian Tigers and has attained the status of a "high-income country" according to the OECD. Following rapid economic growth since the 1980s, South Korea is acknowledged as one of the world's leading technologically advanced nations.
Ranked as the 14th largest economy globally and the 5th most business-friendly nation, South Korea's government has fostered an environment conducive to international companies, establishing robust economic ties with the majority of Asian countries.
The private sector flourishes in South Korea, home to globally renowned brands such as Samsung, LG, Hyundai, and Korea, which have gained fame as prominent manufacturers of electronics within the country.
Technological literacy is widespread among the South Korean population, with 96% of its citizens being internet users. Benefiting from a highly robust infrastructure, fibre optic internet connections are prevalent throughout the nation.
In South Korea, employment contracts must be written and can be in a foreign language. Both indefinite and fixed-term employment are allowed, but the latter cannot exceed 2 years. If it does, the employee becomes permanent. Mandatory contract elements include:
In South Korea, probation periods for permanent employees are optional and usually last 1-3 months. Employers seldom terminate contracts after probation/training due to the associated unemployment costs for the company.
The standard workweek in South Korea is 8 hours per day and 40 hours per week.
Hours worked beyond the standard 40 hours per week are categorised as overtime and compensated at 150% of the regular pay rate, increasing to 200% for night work post 10 pm. Night work (between 10 pm and 6 am). There is a cap of 12 hours on weekly overtime, and the overall work hours, inclusive of overtime, must not surpass 52 hours per week.
The National Minimum Wage in South Korea stands at 9,860 KRW per hour and is applicable to all companies and employees, irrespective of residency status.
South Korea does not have legislation mandating 13th-month payments.
Individual income tax in South Korea follows a progressive rate structure, ranging from 6% to 45%. The tax is calculated based on the taxpayer's income, with higher rates applied to higher income brackets.
The South Korean National Pension is set at 9% of annual salaries, divided equally between employers and employees. This comprehensive program encompasses old-age, disability, and survivor's pensions, providing income security and contributing to national welfare in the event of retirement, disability, or death for South Korean citizens.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in South Korea tailored to your needs.
In South Korea, employers are not permitted to terminate employees at will; terminations must be justified. Acceptable justifications for compliant terminations include:
There is no mandatory notice period in the South Korean Labour Law unless specified in the employment contract or company manual. Nevertheless, it is customary to give 1 month notice to employees.
Under the statutory severance pay system in South Korea, employees, regardless of the reason for termination, including voluntary resignation, are entitled to severance pay if they have been employed for at least 1 year. This pay amounts to 30 days of their average wage, which includes bonus pay from the preceding 3 months, for each year of continuous service.
In South Korea, 11 public national holidays are observed each year:
The South Korean Social Security System comprises three components: social insurance, public assistance, and the social welfare system. Under social insurance, the benefits include:
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It's important to note, visa support can be complicated and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.
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