South Korea’s 52-hour workweek cap applies to everyone — and violations carry criminal penalties. Total working hours including overtime cannot exceed 52 per week. Managerial exemptions exist but courts read them narrowly; do not assume your senior engineers or team leads are exempt. Your EOR tracks hours and flags violations before they become a Ministry of Employment and Labor inspection problem.
South Korea Employment at a Glance
| Detail | Value |
|---|---|
| Currency | Korean Won (KRW) |
| Official Language | Korean |
| Labour Regulator | Ministry of Employment and Labor (MOEL) |
| Working Week | 40 hours (max 52 with overtime) |
| Annual Leave | 15 days after 1 year, increasing with tenure |
| Probation Period | Typically 3 months |
Mandatory Contributions
National Pension Service (NPS)
- Employer: 4.5% of monthly wages
- Employee: 4.5% of monthly wages
National Health Insurance (NHIS)
- Employer: ~3.5% of monthly wages
- Employee: ~3.5% of monthly wages
Employment Insurance (EI)
- Employer: 0.9–1.65% (varies by company size)
- Employee: 0.9%
Industrial Accident Compensation Insurance
- Employer only: 0.7–18.6% (varies by industry risk classification)
Labour Standards Act
South Korea’s Labour Standards Act carries significant employer obligations:
- Severance pay: Mandatory for all employees with 1+ year of service — 30 days’ average wages per year of service, paid upon any separation (resignation, termination, or retirement)
- Overtime: Maximum 12 additional hours per week, paid at 1.5× regular rate
- Annual leave: 15 days after 1 year; increases by 1 day per 2 additional years, capped at 25 days
- Maternity leave: 90 days (60 days paid by employer, 30 days covered by employment insurance)
- Retirement age: Standard retirement is 60 — employers cannot force earlier retirement by contract
Using an EOR in South Korea
EOR providers covering South Korea:
- Deel — strong coverage, owned entity
- G-P — deep compliance expertise
- Pebl — covers South Korea
- INS Global — strong Northeast Asia presence
South Korea’s complex severance rules, strict overtime limits, and high-bar termination requirements make EOR particularly valuable for companies without in-country HR and legal expertise.
Key Considerations
Termination requires just cause: South Korea does not permit termination at will. You must demonstrate legitimate business reasons, provide 30 days’ advance notice (or 30 days’ pay in lieu), and follow a documented process. Wrongful dismissal claims result in reinstatement orders or significant compensation awards. Budget time and legal resources for any involuntary exit.
Severance is not a termination payment — it’s an entitlement on every separation: Severance (퇴직금) accrues from the first year and is payable when employment ends for any reason — including voluntary resignation. At 30 days’ average wages per year, an employee who works 5 years is owed 5 months’ salary on the way out. This is not optional and cannot be waived.
Military service: Male employees may be called up for mandatory military service of 18–21 months. You must hold their position during service — terminating them while on military duty is a criminal offence under the Military Service Act.
