Employment contracts
in South Korea.

SALARY PAYMENT IN South Korean Won (KRW, ₩)

CONTRACT LANGUAGES Korean / English

PAYROLL TAX 16.43% – 34.94%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
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Horizons-owned entity with local country experts in Seoul.

We offer fair, scalable, and transparent pricing on South Korea PEO service. Contact us for a cost breakdown

End service in South Korea with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

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South Korea

Standard employment contract in South Korea: Open-ended contract

In South Korea, the standard employment contract that’s offered in professional settings are indefinite contracts. As such, employees generally work for the one company until retirement.

Indefinite contracts are also referred to as ‘open-ended’, ‘unlimited’ or ‘permanent’ contracts.

The majority of matters relating to contracts of employment are governed by the Labor Standards Act (1997). The minimum standards set out in the Labor Standards Act prevail over any provision within an employment contract that is less favorable to the employee.

Alternative employment contract in South Korea: Temporary contract

Fixed contracts are increasingly used across industries in South Korea. Also known as ‘limited’ or ‘temporary’ contracts, fixed contracts are only valid for a specified period, generally no more than 2 years.

Employees on fixed term contracts benefit from additional protections under the Act on the Protection of Fixed-term and Part-time Employees (2006) and the Act On The Protection Of Temporary Agency Workers (1998).

Note that, where an employee has been employed on a fixed contract for more than two years, that employee will usually be automatically considered to be employed for an indefinite term.

Are there other types of employment contracts in South Korea?

South Korean labor law recognizes a third category of workers, commonly referred to as ‘dispatched workers’.

Dispatched workers are employed by dispatching companies, also known as temporary work agencies, but are subject to the direct supervision and control of the end-employer.

Hiring in South Korea, Made Easy

Your business can easily hire employees in South Korea without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What are the main differences between the standard contract and the alternative contract in South Korea?

The main difference between Indefinite and Fixed contracts is ‘permanence’ i.e. the potential length of the period of employment. Indefinite contracts employ on a permanent basis, whereas fixed contracts employ for a specified period of time. This means that termination is needed to end an Indefinite contract, whereas Fixed contracts usually end on a predefined date or upon completion of a pre-specified event, such as the completion of a project.

Which South Korea employment contract is right for me?

Ultimately, deciding upon the right contract depends on the circumstances of your business and planned operations. For businesses establishing themselves in South Korea, best practice is to draft a clear, written contract of employment. All employment contracts should be drafted in the local language and include details on compensation, benefits, job responsibilities, and company policy on notice periods, disciplinary and dismissal procedures. Letters of offer and employment contracts should state compensation figures in South Korean Won (KRW), rather than any foreign currency.

Partner with our South Korea PEO and gain access to Horizons’ team of local experts who can provide assistance with drafting strong employment contracts that are compliant with local labor laws and regulations.

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"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. When they advised our international expansion, they spoke confidently and were knowledgable on all subject matters pertaining to international employment."

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"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

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Employment contracts
in South Korea.

Standard employment contract in South Korea: Open-ended contract

Alternative employment contract in South Korea: Temporary contract

Are there other types of employment contracts in South Korea?

Hiring in South Korea, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Hire Anywhere. Today.

Employment contracts in South Korea.

Standard employment contract in South Korea: Open-ended contract

Alternative employment contract in South Korea: Temporary contract

Are there other types of employment contracts in South Korea?

Hiring in South Korea, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Hire Anywhere. Today.

Employment contracts
in South Korea.