South Korea

Employer of Record & PEO in South Korea

Hire & manage teams remotely in South Korea without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Native Language

Korean

Employee Protection

Medium

Payroll Frequency

Monthly

Capital city

Seoul

Termination

Hard

Internet

Fast

Currency

South Korean Won (KRW)

Immigration

Hard

English Speaking

<10%

Population

51.71 Million

Employment Cost

High

Cost of Living

Medium

How NNRoad Employment & PEO Services Work?

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in South Korea. Registering a legal entity in South Korea as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in South Korea in full accordance with local labor laws in under a week.

Employer of Record in South Korea

Employer of Record (EOR) services are for companies who do not have a legal entity in South Korea, but who want to hire in South Korea. Employment and full liability are outsourced to NNRoad.

➊ You interviews & select the candidates you want to hire in South Korea.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes  payroll in South Korea in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in South Korea while NNRoad manages payroll & HR liabilities.

  • Recruiting process outsourcing – including but not limited to sourcing plan, project initiation, professional candidate search, resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation, reference check and offer, and on boarding
  • Hiring of and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire, confidentiality agreement)
  • On-boarding and off-boarding employees following local law practice
  • Complete payroll solution and statutory benefit administration
  • Employee management – employee record retaining, time keeping, bonus and allowance management, and expense and claims
  • Mandatory social security insurance (national pension, medical insurance, unemployment insurance, and industry injury compensation insurance) and other official deductions compliance according to the local laws
  • Advisory of HR regulations and rules according to the local laws
  • Providing full and transparent calculation report of the employment cost
  • Working VISA application assistance, if needed
  • Local individual income tax reporting, if needed

Payroll & PEO in South Korea

Professional Employment Organization (PEO) services are for companies who have a legal entity in South Korea, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

➊ You interviews & select the candidates you want to hire in South Korea.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in South Korea while NNRoad manages payroll & HR compliance.

  • Registering the necessary company and personnel information for payroll calculation in the payroll software and system
  • Monthly Payroll Processing
  • Maternity benefits management for expectant women employees
  • Year-End Adjustment and Annual Declaration

Advantages of NNRoad's South Korea Employment Services

  1. With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in South Korea.
  2. Pay as you go
  3. ​​Dedicated account manager – One point of contact for multiple locations
  4. Employment & termination processing
  5. Complete payroll solution and statutory benefit according to local laws
  6. With EOR/PEO solutions you can hire staff while waiting for the registration of your company in South Korea.
  7. NNRoad only works with professional locally licensed partners
  8. GDPR compliant
  9. NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
  10. NNRoad provides foreigner VISA application services, if needed

Employment Compliance in South Korea

Taxes & Payroll in South Korea

Employee Income Taxes:

Individual income tax rates in Malaysia are based on progressive tax brackets. In Korea, an additional “local residence” tax of 10% applies to all employees. This is calculated after IIT deductions.

Tax Brackets

6%: 0 – 12 million KRW
15%: 12 million – 46 million KRW
24%: 46 million – 88 million KRW
35%: 88 million – 150 million KRW
38%: 150 million – 300 million KRW
40%: 300 million – 500 million KRW
42%: 500 million – 1 billion KRW
45%: > 1 billion KRW

Sample Calculation

Yearly income = 150 million KRW
35% * 62 million = 21.17 million
24% * 42 million = 10.08 million
15% * 34 million = 5.1 million
6% * 12 million = 0.72 million
21.17+10.08+5.1+0.72 = 37.07 million

Yearly income tax = 37.07 million KRW

Employer Costs in South Korea

Employer Contributions:

4.50%: National Pension
1.05%-1.65%: Employment Insurance
0.73%-18.63%: Worker Accident Compensation Insurance
3.68%: National Health Insurance

Employee Contributions:

4.50%: National Pension
0.8%: Employment Insurance
3.68%: National Health Insurance

Working Hours in South Korea

Working Hours per Week

The normal work week in South Korea is 40 hours per week, but may vary in specific industries.

Benefits & Insurance in South Korea

Korea has five mandatory social security systems and insurances. These are the national pension, healthcare insurance, unemployment insurance, industrial accident compensation, and long-term care for senior citizens.

The benefits provided by the South Korean government covers minimum necessities and employers usually offer  benefits such as pension and healthcare as incentives to attract talents.

Termination Laws in South Korea

Termination:

Employers in Korea must have one of many valid reasons to terminate an employee. South Korean law strictly protects employees from being illegally terminated or terminated without just cause.

Severance

Severance pay in Korea is mandatory even if the employee resigns on his own will. Terminated employees are entitled to 30 days severance pay. 

Notice

Employers must give a 30 days notice before termination of an employee’s contract.

Public Holidays in South Korea

Public Holidays in South Korea

  • New Year’s Day
  • Seotdal Geumeum
  • Korean New Year
  • Independence Movement Day
  • Children’s Day
  • Buddha’s Birthday
  • Memorial Day
  • National Liberation Day of Korea
  • Chuseok
  • National Foundation Day
  • Hangul Day
  • Christmas Day

Paid Leave in South Korea

Employees employed for 1 year  are entitled to 11 days paid leave per year.

Employees employed for 2-3 years are entitled to 15 days paid leave per year.

Employees employed for more than 3 years are entitled to 15 days paid leave plus 1 day for every additional 2 years of employment. Capped at 25 days paid leave.

Employment Contract in South Korea

Employment Contract

Employment contracts in South Korea should be written in Korean and spell out the salary & benefits.

Probation Period

Probation periods in South Korea are generally between 1 and 3 months.

Types of Leaves in South Korea

Sick Leave:

Sick leave in South Korea is decided by the employer, but most employers offer sick days.

Maternity Leave:

Female employees are entitled to 90 days of paid maternal leave and 120 days of paid maternity leave in case of multiple births. The employer pays for the first 60 (75 in case of multiple births) days. The Employment Insurance Fund covers the remaining days.

Paternity Leave:

New fathers in Korea are entitled to 3 days of paid paternity leave.

Immigration Laws in South Korea

There are 8 different categories of work permits granted to foreign workers in South Korea.

Procedure

Both online and in-person visa applications are accepted in South Korea:

  • E-visa application through the visa portal
  • Application from a foreign South Korean diplomatic mission
  • Confirmation of the visa on the portal
  • Confirmation of the visa at a South Korean immigration office

Your employer in South Korea must have a legal entity in South Korea to apply for your work permit in the country.

Resources

Scroll to Top