South Korea's Labor Standards Act requires a written statement of core employment terms — wages, working hours and holidays — before a new hire starts, and pairs monthly payroll withholding with an annual year-end tax settlement (연말정산) for foreign and local employees alike. Share the role and your intended start date, and PIO confirms the available arrangement for that hire, then coordinates the contract, National Pension enrollment and payroll around it.
Practical points to line up before you hire in South Korea.
Weekly working-hour limits
South Korea's Labor Standards Act caps the standard workweek at 52 hours — 40 regular hours plus up to 12 hours of overtime — down from a previous 68-hour ceiling, and requires a rest period between shifts even where an industry is exempt from the general cap. Structure the role's hours and any overtime expectations around these limits from the outset.
The Labor Standards Act requires advance notice before an employee is dismissed, and this protection extends even to Korea's smallest workplaces. Build advance notice into any termination timeline rather than treating the employment as at-will.
Employees working in South Korea are generally enrolled in the National Pension scheme, with contributions split between employer and employee. We help get this enrollment set up correctly from the start of the employment.
South Korea combines monthly payroll tax withholding with an annual year-end tax settlement process that applies to foreign employees working in Korea as well as local staff. Plan for both the recurring withholding and the annual settlement from your first payroll cycle.
Once your hire is confirmed, here's what we help you coordinate.
Confirming country availability and the arrangement for your hire
Coordinating the information and documents needed for onboarding
Confirming how contract, payroll and statutory responsibilities are handled in your arrangement
Explaining the process for changes, leave and offboarding
What you provide
You stay in control of the decisions that are yours to make.
The role, compensation and any company-specific policies
Final approval on the offer and any changes to it
A point of contact for escalations during employment
How it works
A straightforward path from sign-up to your employee's first day.
Step 1
Tell us about the hire
Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.
Step 2
We coordinate onboarding
Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.
Step 3
Your employee starts
You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.
Frequently asked questions
Does South Korea require a written employment contract?
Yes — the Labor Standards Act requires employers to set out core terms in writing, including wages, working hours and holidays, before a new hire starts work. We build these terms into the contract paperwork we coordinate for your hire.
Does the year-end tax settlement process apply to foreign employees, or only Korean nationals?
Korea's National Tax Service publishes guidance specifically for foreign employees working in Korea, and the year-end settlement process — reconciling monthly withholding against the employee's actual annual tax liability — applies to foreign and local staff alike.
How are National Pension contributions split between employer and employee?
National Pension contributions are shared between employer and employee, both paying a percentage of the employee's standard monthly income into the scheme. We confirm the current contribution split and set up the payroll deduction for your hire.
Does Korean law require payment in lieu of notice if 30 days' notice isn't given?
Yes — the Labor Standards Act requires at least 30 days' advance notice before a dismissal, or ordinary wages in lieu of that notice period if 30 days' notice isn't given. Any termination timeline needs to account for one or the other.
Can I use PIO to start an EOR hire in South Korea?
Yes — South Korea is available in PIO's onboarding workflow. Sign up or book a demo to confirm the details of your specific hire and see the available arrangement.
What do I need to provide to start onboarding a hire in South Korea?
You provide the role, compensation and any company-specific policies, plus final approval on the offer. From there, we help coordinate the information and documents needed to set up the contract and payroll for your arrangement.
4 official sources
Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.
Sign up to start an EOR hire in South Korea. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.