Multiplier is the top pick for South Korea — owned entity, full four-insurance registration, Korean-language HR support, and $199/mo cheaper than Deel at $400/mo. Deel is the better choice for Seoul tech hiring where competitive compensation structures and 3–5 day onboarding speed matter more than cost. G-P is the right call for enterprise clients in regulated industries where compliance documentation standards are highest.
South Korea is Asia’s fourth-largest economy and a serious tech and manufacturing hub. Its Labour Standards Act is one of the most employee-protective in Asia — mandatory severance after 1 year, a strict 52-hour workweek cap, and dismissal laws that make wrongful termination claims a routine risk for unprepared companies.
Why Companies Use EOR in South Korea
- Strict Labor Standards Act: Korea’s LSA mandates severance pay after just 1 year, strict overtime caps, and detailed written employment contracts
- Four mandatory insurance schemes: National Pension, National Health Insurance, Employment Insurance, and Workers’ Compensation must all be registered within days of hire
- Difficult dismissal laws: Terminating an employee in Korea requires documented cause and proper process — wrongful termination claims are common
- Entity setup timeline: Establishing a foreign branch or subsidiary takes 4–8 weeks and requires substantial documentation
Top EOR Providers for South Korea
| Provider | Korea Entity | Korean-Language Support | Monthly Fee | Rating |
|---|---|---|---|---|
| Multiplier | Owned | Yes | $400/mo | 4.7 |
| Deel | Owned | Yes | $599/mo | 4.8 |
| Remote | Owned | Yes | $599/mo | 4.7 |
| G-P | Owned | Yes | $599+/mo | 4.5 |
| Rippling | Owned | Limited | $500+/mo | 4.6 |
1. Multiplier — Best Overall for South Korea
Multiplier’s owned Korean entity, Korean-speaking HR support, and $400/mo price make it the default top choice for hiring in Seoul and beyond.
Korea-specific strengths:
- Owned Korean entity (not a partner-based model)
- Full four-insurance registration: National Pension (NPS), National Health Insurance (NHI), Employment Insurance (UI), Workers’ Compensation (WC)
- Korean-language employment contracts and employee communications
- Severance pay provisioning from month one (mandatory after 12 months of employment)
- Annual leave compliance: minimum 15 days after 1 year, growing to 25 days
- Statutory bonus and performance structures correctly documented
Best for: Default top pick — best price, full compliance, Korean-language capability.
2. Deel — Best for Tech Hiring in Seoul
Deel’s presence in Korea’s tech hiring ecosystem gives it specific expertise for competitive roles — offer letters that benchmark against Kakao, Naver, and gaming industry compensation structures. Particularly strong for roles where the 52-hour workweek cap has to be carefully documented.
Korea-specific strengths:
- 3–5 business day onboarding
- Strong KRW payroll processing
- Compliance with the 52-hour workweek cap including management exceptions
- Handles PC allowances and meal stipends common in Korean tech firms
Best for: Tech companies hiring software engineers or product managers in Seoul’s competitive market.
3. G-P — Best for Enterprise/Regulated Industries
G-P has long-standing Korea operations and is the go-to for enterprise clients — Fortune 500, financial services, life sciences — where compliance documentation standards are the highest.
Korea-specific strengths:
- Deep Korean employment law expertise including collective agreement nuances
- Strong track record in regulated sectors (pharma, finance)
- Dedicated Korean account management
Best for: Large enterprises with strict vendor compliance requirements.
South Korea Employment Compliance Snapshot
| Obligation | Employer Rate | Employee Rate |
|---|---|---|
| National Pension (NPS) | 4.5% of salary | 4.5% of salary |
| National Health Insurance (NHI) | ~3.54% of salary | ~3.54% of salary |
| Long-term Care Insurance | 12.81% of NHI premium | 12.81% of NHI premium |
| Employment Insurance (UI) | 0.9–1.5% (varies by size) | 0.9% of salary |
| Workers’ Compensation | 0.7–18.6% (by industry) | — |
| Minimum wage | KRW 10,030/hour (2026) | — |
| Annual leave | 15 days (after 1 year), up to 25 | — |
| Maternity leave | 90 days (45 pre-birth) | — |
| Paternity leave | 10 days | — |
| Parental leave | 12 months each parent | — |
| Severance pay | 1 month per year of service | — |
| Workweek limit | 52 hours maximum | — |
The 52-Hour Workweek Rule
Korea’s Labor Standards Act caps working hours at 52 per week (40 regular + 12 overtime). The implications are non-trivial:
- Employees cannot voluntarily waive the 52-hour cap
- “Managerial” exemptions exist but are narrowly defined — courts read them strictly, and misuse leads to significant fines
- If the role requires irregular hours (sales, projects), your EOR must document a flexible work arrangement in the employment contract
- Companies with 5–29 employees have special provisions — confirm your EOR handles size-based rules correctly
Frequently Asked Questions
Is severance pay mandatory in South Korea? Yes. Every employee who works continuously for 1+ years receives severance equal to 30 days of average wages per year of service upon separation — resignation, termination, or retirement. Your EOR provisions this monthly so there’s no lump-sum surprise.
Can I terminate an employee in South Korea without cause? Not legally. The Labor Standards Act requires “justifiable cause” for dismissal at companies with 5+ employees. 30 days written advance notice (or 30 days pay in lieu) is required. Budget for EOR-managed termination procedures involving local counsel.
How fast can I hire in South Korea via EOR? Typically 5–10 business days for Korean nationals. The main variable is mandatory insurance registration processing time — NPS and NHI typically process within 2–3 days of submission.
What is the difference between a Korean branch office and using an EOR? A branch office is an extension of your foreign entity. It can be established in 3–4 weeks but has limited liability protection and requires Korean tax filing. An EOR employs on your behalf with no Korean entity required. For fewer than 10–15 employees, EOR is almost always more cost-effective.
Does an EOR in Korea handle the annual salary increase requirement? There is no statutory minimum annual increase. But Korea has strong cultural norms around annual salary reviews — missing them affects retention. Your EOR can advise on market rates and process salary changes via addendum.
