• Employers must register with the relevant Korean authorities and operate payroll withholding for employment income. 
• Payroll is generally processed monthly, with employers responsible for withholding individual income tax and local income tax and remitting employee social insurance contributions.
• Social Insurance: 
  
  • National Pension
    
    • Employer: 4.75%
    • Employee: 4.75%
  • National Health Insurance
    
    • National Health Insurance is 7.19% in total, generally split equally
  • Employment Insurance 
    
    • Employee: 0.9% employee
    • Employer: 0.9% (additional employer rates depend on the size of the workforce) 

• Accident Compensation Insurance: Generally funded by the employer.

• Minimum Wage: The 2026 national minimum wage is KRW 10,320 per hour, equivalent to KRW 82,560 per day based on an eight-hour working day and KRW 2,156,880 per month based on a 40-hour week including paid weekly rest.

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• Contract Types: Employment may be indefinite or fixed-term. Employers must provide employees with written details of key employment conditions, including wages, working hours, holidays and leave.
• Probation: Probation periods are commonly used, although there is no single statutory maximum applicable to all employees.
• Working Hours: Standard working hours are 8 hours per day and 40 hours per week, excluding breaks. Overtime is permitted subject to statutory limits and is generally compensated at a 50% premium over the ordinary wage. Night and holiday work is also generally subject to additional compensation. 
• Annual Leave: Employees who have worked at least 80% of a year are generally entitled to 15 days of paid annual leave. Employees with less than one year of service generally receive one paid day per month of perfect attendance. Additional annual leave accrues with long service, up to a maximum of 25 days.
• Notice Periods: Employers generally must provide at least 30 days' advance notice of dismissal or pay ordinary wages for 30 days in lieu, subject to statutory exceptions.
• Termination: Dismissal generally requires justifiable grounds. Employers must comply with applicable notice, procedural and documentation requirements. Restrictions apply to dismissal in circumstances such as business-related reasons and protected periods.
• Severance: Employees who satisfy the statutory service requirements are generally entitled to retirement/severance benefits of at least 30 days' average wages for each year of continuous service.
• Non-Compete: Post-employment non-compete clauses may be enforceable where appropriately drafted and reasonably necessary to protect legitimate business interests.

• Social Security: South Korea's mandatory social insurance system consists of National Pension, National Health Insurance, Employment Insurance and Industrial Accident Compensation Insurance. National Pension is currently 9.5% in total, split equally between employer and employee for workplace-based insured persons. National Health Insurance is 7.19% in 2026, generally split equally between employer and employee. 
• Annual Leave: At least 15 days of paid annual leave after completing one year with at least 80% attendance. Additional days are available based on length of service, up to 25 days. 
• Sick Leave: There is no general statutory entitlement to employer-paid sick leave for ordinary illness. Employers may provide sick leave under their employment rules or collective agreements, while statutory leave and compensation can apply in specific circumstances.
• Maternity Leave: 90 days of maternity leave, with at least 45 days required after childbirth. The entitlement increases to 100 days for premature births and 120 days for multiple births. Statutory maternity benefits may be funded through employment insurance subject to eligibility requirements.
• Paternity Leave: Employees are entitled to 20 days of paid spouse's childbirth leave under the current legislation. The leave generally must be taken within 120 days of the child's birth and can be divided into up to three periods.
• Parental Leave: Employees may also qualify for statutory parental leave and related employment-insurance benefits when caring for children, subject to the applicable eligibility requirements.
• Public Holidays: Employees covered by the relevant provisions are entitled to paid holidays on statutory public holidays.
• Retirement Benefits: Employers must operate a statutory retirement benefit arrangement. Where the retirement allowance system applies, the statutory minimum is generally equivalent to 30 days of average wages for each year of continuous service.

• Tax Residency: Individuals are generally considered Korean tax residents where they have a domicile in Korea, reside in Korea for 183 days or more, or satisfy other residence tests based on their occupation, family and economic circumstances. From 2026, certain consecutive 183-day residence rules also apply. 
• Residents: Korean residents are generally taxed on worldwide income, although special rules apply to certain foreign residents who have been resident in Korea for five years or less during the previous ten-year period. 
• Non-Residents: Non-residents are generally taxed only on Korean-source income and cannot generally claim the same personal exemptions, income deductions and tax credits available to residents.
• Tax Year: January 1 – December 31.
• System: South Korea uses a progressive personal income tax system, with national rates ranging from 6% to 45%, before local income tax. Local income tax is generally calculated at 10% of the national income tax, producing combined marginal rates of approximately 6.6% to 49.5%. 
• Double Taxation Treaties: South Korea has an extensive network of double taxation agreements.