🇰🇷 Hiring in South Korea

💡 Everything you need to know to hire and manage employees in South Korea through Toku. Toku handles payroll processing, tax withholding, social contributions, and statutory compliance. This guide covers what you need to plan costs and manage your team.

At a Glance

Onboarding a New Hire

Plan for 2-3 business days between submitting a new hire and their start date, one of the shortest lead times of any country. Pre-start requirements are minimal: Toku completes the four social insurance registrations shortly after the start date (within the statutory 14-day window), so nothing blocks day one.

Submit your new hire through the Toku platform and we take it from there: local employment agreement, statutory registrations, and payroll setup. See Onboard Contributors as a Client Admin in Toku for the step-by-step process, and the Country Readiness Live Tracker for lead times across all countries.

Employer Costs

On top of gross salary, employers in South Korea pay the following:

As a rule of thumb, total cost of employment is roughly 110-113% of gross salary for typical office roles. On top of this, budget for statutory severance: every employee with at least one year of service is owed roughly one month's average pay per year of service when they leave, for any reason including resignation. There is no 13th month salary requirement.

Employees pay their own share of National Pension (4.75%, capped), health and long-term care insurance (about 4.07%), employment insurance (0.9%), and progressive income tax of 6-45% plus a 10% local surcharge. Foreign employees starting by the end of 2026 can elect a flat 19% national rate instead. These are withheld from gross salary, not charged on top. Toku calculates and remits all of the above.

Compensation & Payroll

Toku runs one payroll per month in South Korea on a fixed date, and employees receive a written payslip each cycle. The national minimum wage for 2026 is KRW 10,320 per hour, roughly KRW 2,156,880 per month for full-time work, uniform across all regions. There is no mandatory 13th month payment; annual bonuses are contractual. Salaries are paid in KRW by bank transfer.

Employment Contracts & Probation

• Toku issues a compliant local employment agreement for every hire; written contracts are mandatory, and the Korean-language version prevails.
• Employment types are indefinite (regular), fixed-term, and part-time. Fixed-term contracts cannot exceed two years; beyond that, the role automatically converts to indefinite employment.
• Probation under Toku's employment agreement is 6 months. Statute does not fix a probation length; during the first three months of service the standard 30-day notice does not apply, though a justifiable reason for any dismissal is still required.

Working Hours

The standard week is 40 hours over five days, with a hard legal cap of 52 hours per week including a maximum of 12 overtime hours. Employees get a 30-minute unpaid break per four hours worked. Overtime and holiday work are paid at 150% of the ordinary wage, night work (10 PM to 6 AM) adds another 50%, and the premiums stack, so overtime at night pays 200%. Pregnant employees and parents of children under 12 can request reduced schedules.

Leave Entitlements

Unused annual leave generally must be paid out in cash unless the employee was actively encouraged to take it. There is no statutory paid sick leave, so many clients add sick days by policy; paternity and childcare leave are government-funded through Employment Insurance.

Public Holidays (2026)

South Korea observes approximately 16 public holiday days in 2026, including the multi-day Seollal and Chuseok holidays. Most holidays falling on a weekend generate a substitute Monday holiday, with some exceptions. Employees required to work on a public holiday receive 150% of their ordinary wage.

Benefits: Required vs. Common Extras

Statutory (included in employer costs above): the four social insurance programs (National Pension, National Health Insurance with Long-Term Care, Employment Insurance, and Workers' Compensation), statutory severance pay, annual paid leave, and the maternity and paternity leave benefits.

Toku offers fully sponsored international health coverage through Remote Health. See Remote Health, Your Global Insurance Plan for coverage details and enrollment.

Common extras in the Korean market include private medical insurance, meal allowances (tax-exempt up to KRW 200,000 per month), transportation subsidies, housing allowances, childcare subsidies, and stock options or performance bonuses. Most other benefits in kind are taxable; Toku can advise on the cost impact of any benefits you want to add.

Ending Employment

South Korea is one of the most employee-protective jurisdictions in Asia for dismissals: every termination requires just cause, which courts interpret strictly, and employees can challenge dismissals before the Labor Relations Commission within three months. Involve Toku before taking any steps. For the process, see How to Terminate an Employee or Contractor.

Statutory severance is owed to every employee with at least one year of service, regardless of why they leave: 30 days of average wages (based on the last three months, including regular allowances and bonuses) per year of service. Pregnant employees, employees on maternity or childcare leave, and employees with work-related injuries have special protection, and redundancy dismissals must satisfy a strict four-part legal test.

Hiring Someone from Overseas?

The main route for skilled professionals is the E-7 Specialty Worker visa, sponsored by the employer through a Confirmation of Visa Issuance before the employee applies abroad; processing typically takes two to four weeks, and stays over 90 days require foreigner registration and a Residence Card. Talk to Toku before extending an offer to a candidate who needs sponsorship.

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Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Your Toku account manager can confirm specifics for your situation.