# Hiring in South Korea: employment costs, payroll and compliance

> Machine-readable page from EOR Overview (https://eoroverview.com/), an independent research platform for Employer of Record services.
> Canonical page: https://eoroverview.com/hiring-guides/south-korea/
> Methodology: how providers are researched, scored and compared is documented at https://eoroverview.com/methodology/.
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> Statutory data last updated: 2026-02-23. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Asia |
| Currency | KRW (South Korean Won) |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Minimum wage | ₩2,096,270 | 2025 |
| Average wage | 50,947 | 2024 |
| Statutory work week | 40 hours/week | 2024 |
| 13th-month salary | customary | 2026 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Employer social security | 11.1% | 2025 |
| Employee social security | 9.4% | 2025 |
| Total tax wedge | 24.8% | 2025 |
| Corporate tax rate | 9.9% | 2025 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 4.3 weeks | 2019 |
| Severance pay | 23.1 weeks | 2019 |
| Employment protection | 2.4 | 2019 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Public holidays | 18 days | 2026 |
| Maternity leave | 12.9 weeks | 2024 |
| Paternity leave | 55 weeks | 2026 |
| Parental leave | 78 weeks | 2024 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Retirement age | 63 | 2024 |
| Unemployment rate | 3% | 2026 |
| GDP per capita | $36,239 | 2024 |
| Union density | 12.5% | 2023 |
| Collective bargaining coverage | 16.3% | 2023 |

## Overview

Before your first South Korean employee reaches payday, you need either a registered local entity or an Employer of Record (EOR) in place. There is no shortcut: South Korea requires a legal employer on the ground, and setting up your own entity takes time and local expertise that most foreign companies simply do not have ready. An EOR absorbs that burden so you can hire without waiting months for incorporation.

Once you are set up, the numbers that shape your budget most are the employer social security contribution of 11.1% of gross salary and a severance entitlement that works out to roughly 23.1 weeks of pay per year of service. The statutory work week sits at 40 hours, and the average worker logs around 1,865 hours a year, which is notably high by OECD standards. Factor all of that in before you finalise any offer.

## Cost context

On top of gross salary, South Korean employers contribute 11.1% in social security charges covering national pension, health insurance, employment insurance, and industrial accident compensation. Employees contribute a further 9.4% on their side, bringing the combined social contribution load to just over 20% of gross, with a total tax wedge of 24.8%. The corporate tax rate sits at 25%, which is a separate but relevant figure if you are weighing an EOR arrangement against setting up your own entity.

## Things to watch

South Korea has a few specifics that catch foreign employers off guard, so these are worth knowing before you commit to a hire.

- Severance is not optional. Employees are entitled to roughly 23.1 weeks of severance pay, and this accrues from day one. Budget for it as a running liability, not a one-off exit cost.

- Working hours are long but regulated. The statutory week is 40 hours, yet average annual hours reach 1,865. Overtime rules are strict, and breaching them carries real legal risk, so make sure your contracts and payroll systems track hours carefully.

- Collective bargaining coverage is low but union activity is concentrated. With union density at 12.5% and collective bargaining agreement coverage at 16.3%, most workplaces are non-unionised. However, where unions do exist, they tend to be assertive, so check the sector before assuming a quiet labour relations environment.

- The notice period is short. At around 4.3 weeks, South Korea's statutory notice period is relatively brief. That can work in your favour when you need to move quickly, but it also means employees can leave fast, so succession planning matters more than you might expect.

Providers ranked for South Korea: https://eoroverview.com/best/south-korea/