Employer of Record in South Korea | Hiring and Employment Guide

An Employer of Record (EOR) can employ someone in South Korea and administer their contract, payroll and benefits. If the provider employs the worker and your company directs their day-to-day work, the arrangement can qualify as worker dispatch. Before making an offer, confirm the agency's permission, the legal basis for the actual duties and how long the assignment can run. Dispatch Act, Supreme Court decision.

Employment in South Korea at a glance

National private-sector baseline for employees working in South Korea. Workplace size, scheduled hours and industry affect coverage where noted.

EOR and hiring options

Start with who will assign and supervise the work. Korean courts look at the working relationship, including who gives binding instructions and how closely the worker is integrated into the client's team. If it is dispatch, use an agency licensed by the Ministry of Employment and Labor and put the duties, work location, supervisor and assignment term in the written dispatch agreement. Dispatch Act, Supreme Court decision.

• Regular dispatch. The duties must fit an occupation listed in the enforcement decree. Regular assignments run for up to one year initially and can generally extend to two years total with agreement from the worker, agency and client. A statutory exception allows longer extensions for qualifying older workers. Direct manufacturing production is excluded from the regular route. Permitted occupations, Scope of dispatch, Assignment limits.
• Temporary cover. For an identifiable absence such as childbirth, illness or injury, the assignment can run for the time needed to cover the absence. Other temporary or intermittent staffing needs generally allow up to three months, with one agreed extension of up to three months if the need continues. The client must consult the relevant union or worker representative in advance. Prohibitions, including work at construction sites, still apply. Dispatch exceptions, Assignment limits.
• Direct employment. For an ongoing role you expect to manage beyond the available assignment term, assess direct employment through a Korean entity early. Your company holds the employment contract and can outsource payroll administration. Korean entity options, Global payroll.

Using an unlicensed dispatch agency or exceeding the ordinary two-year cap can trigger a duty for the client to hire the worker directly. For any route, if the worker will regularly conclude contracts on behalf of a foreign company in Korea, assess Korean taxable presence under local law and any applicable treaty. Direct-hire obligation, Corporate Tax Act.

The agency pays wages and overtime premiums and administers annual leave. The client has statutory duties for working time, breaks, public holidays and workplace safety. Agree how managers will send hours and holiday work to the agency before payroll closes. When the client regularly employs five or more workers, both parties must avoid unjustified differences in pay and conditions compared with the client's employees doing the same or similar work. The client can also share liability for unpaid wages in specified circumstances. Dispatch Act, articles 2, 21, 34 and 35.

What changes at the one-year mark

Suppose you bring in a systems analyst for a 12-month Seoul rollout and the duties qualify under the decree's computer-specialist category. If the analyst's full-time employment with the agency starts with the rollout and lawfully ends on the last day of a one-year employment term, the worker qualifies for a retirement benefit and may have earned up to 11 first-year leave days. The 15-day grant vests only if employment continues into the second year and the attendance condition is met. Permitted occupations, Retirement eligibility, Annual leave ruling.

Keep the agency's service dates and the assignment dates in separate records. Statutory parental leave counts toward continuous service and is excluded when calculating the dispatch period, so those dates can diverge during the assignment. If you plan to employ the analyst directly, agree the new start date with the worker and have the agency confirm which accrued amounts it must settle. Assignment limits, Parental leave law.

Employment costs

At ₩5 million gross a month, budget about ₩5.50 million to ₩5.53 million per month for salary and the employer contributions shown below. Then add workers' compensation insurance, the applicable retirement benefit and the EOR fee.

This Borderless AI calculation uses November 2026 rates for a full contribution month for a fully insured South Korean systems analyst working full time in Seoul on a permitted dispatch assignment. It assumes ₩60 million in ordinary gross salary over 12 equal pay months, with no bonus or overtime and ₩5 million as the monthly base for each contribution shown.

Add any bonus or allowance owed under the contract, work rules or an applicable agreement. Price supplemental benefits, equipment and any immigration or setup costs separately. Pay salary on the agreed payday and budget for statutory remittances on their own schedules. For retirement, confirm how and when the employer funds the chosen plan. A monthly budget equivalent helps you compare offers even when the retirement contribution is paid less frequently. Payday rule, Health insurance due date, Retirement contribution timing.

For a 2027 start, request a breakdown using the rates for the actual start month. The scheduled employer pension share rises to 5%. The government announced a total long-term care rate of 0.9994% of covered pay for 2027 and kept the total health insurance rate at 7.19%. Pension schedule, 2027 care rate, 2027 health rate.

Payroll, taxes and payments

Set the fixed payday in the offer and agree a cutoff for hours, expenses and variable pay with the payroll team. On payday, the employer gives the employee a wage statement and withholds applicable insurance shares and taxes. National income tax uses progressive marginal rates of 6% to 45% on taxable income, with withholding based on monthly wage tables. For resident wage earners, local withholding is generally 10% of the national income tax withheld. Wage statements, National tax rates, Income Tax Act, Local withholding.

On the standard monthly schedule, the employer remits withheld tax and workplace health insurance premiums by the 10th of the following month. The employer normally reconciles the January to December tax year with the following February's payroll, or with the final month's wages if the employee leaves sooner. The provider invoice has its own due date. Tax remittance, Income Tax Act, Health insurance due date.

The National Pension calculation uses a standard monthly income between ₩410,000 and ₩6,590,000 from July 2026 through June 2027. The 2026 wage-based workplace health insurance premium has a monthly cap of ₩9,183,480 across both shares. Pension limits, Health insurance cap.

Contracts and employment conditions

Give the employee written terms covering wage components, how pay is calculated and paid, agreed hours, holidays and annual leave. Specify the work location and duties, including any remote schedule, and check the employer's work rules and applicable collective agreement. Employers that regularly employ at least 10 workers must draw up and file work rules. Contract requirements, Labor Standards Act, article 93.

Choose an open-ended contract for ongoing employment or confirm the legal basis and term for a fixed-term contract. For covered employers, repeated fixed terms generally count toward a two-year limit, with statutory exceptions. Employment beyond the limit is generally treated as open-ended. The worker's employment term and any dispatch assignment term are separate. If you include probation, set review criteria and document performance. At covered workplaces, dismissal during probation still requires justifiable grounds. Fixed-term employment law, Dismissal rules.

Working hours, leave and holidays

• Hours and premiums. The standard schedule is eight hours a day and 40 a week before breaks. Covered employees generally receive at least 30 minutes of break time for four hours of work and an hour for eight. Covered overtime and night work from 10 p.m. to 6 a.m. each carry a premium of at least 50% of ordinary wages. Holiday work carries at least 50% extra for the first eight hours and 100% extra thereafter. If a remote role requires late calls in Korean time, include that work when you agree the schedule and price the offer. Healthcare and certain transport businesses can apply different overtime and break rules under a written worker-representative agreement. Labor Standards Act, articles 50 to 59.
• Annual leave. In the first year, employees earn one working day per fully attended month, up to 11. After a qualifying year, the annual grant is 15 working days, increasing with service to a maximum of 25. For workplaces with four or fewer employees, and for workers averaging under 15 scheduled hours a week, check the applicable contract, rules and coverage before quoting paid time off. Leave and coverage rules, Supreme Court ruling.
• Holidays. Use the statutory public and substitute holiday dates for the year alongside the worker's schedule. Substitute days depend on the specific holiday and how the dates fall. May 1, already a paid holiday under separate labor legislation, became a public holiday in 2026. Public holiday rules, Labor Day change.
• Sick leave. For ordinary illness, check the contract, work rules or applicable collective agreement for entitlement and pay. Labor ministry guidance.
• Maternity and parental leave. Standard maternity leave is 90 calendar days, with at least 45 after birth. Qualifying premature births and multiple births carry longer entitlements. Eligible employees can generally take up to one year of parental leave for a child age eight or younger or in grade two or below, with up to six extra months in specified cases. Confirm the coverage and funding rules when planning a replacement. Maternity leave rules, Parental leave law.

Employee benefits

The main statutory programs are National Pension, health insurance with its long-term care premium, Employment Insurance and workers' compensation. Pension, health, long-term care and the unemployment-benefit portion of Employment Insurance generally have employer and employee shares. The employer funds workers' compensation and the employment and training component of Employment Insurance. Confirm coverage for the specific worker, especially for short-hours hires and people covered by a cross-border social security agreement. National Pension Service, NHIS contributions, Employment insurance rates.

The employer also provides a retirement benefit for eligible employees with at least one year of continuous service and at least 15 scheduled hours a week on average over four weeks. Confirm whether the employer uses a retirement pension or a lump-sum severance plan. Check company rules and any applicable agreement for additional allowances and leave. Price any optional benefits, such as supplemental health coverage, separately. Retirement eligibility, Borderless benefits.

Hiring, onboarding and work authorization

1. Client and employer agree the route. Before setting the start date, record the duties, supervisor, location and expected duration. If the role involves dispatch, verify permission and sign the written dispatch agreement. Dispatch agreement rules.
2. Employer and candidate clear work authorization. For a foreign national, verify that the status of stay permits the proposed work and workplace. A workplace change can require prior permission or, for qualifying categories, a report after the change. Confirm who can sponsor the relevant status and clear any required pre-start approval before committing to a start date. Work eligibility, Workplace changes, Korea Visa Portal.
3. Employer sets up first pay. Issue the written terms, collect identity and banking details securely and give the employee their first payday. Record the insurance qualification dates. For standard workplace health insurance, the employer generally reports acquisition or a change of status within 14 days. The National Pension Service generally requires the employer's acquisition report by the 15th of the following month. Plan each filing from its own trigger date and set an earlier operational cutoff for payroll inputs. Health insurance reporting, Pension reporting.

Termination and final pay

If your company ends a dispatch assignment, the agency must separately assess what happens to the employment relationship. At workplaces that regularly employ five or more, dismissal requires justifiable grounds and written notice stating the reason and effective date. A separate rule generally requires at least 30 days' notice or at least 30 days of ordinary wages, including at smaller workplaces. The notice rule has limited exceptions, including less than three months of continuous service. Labor Standards Act, articles 23 to 27, Small-workplace rules, Dispatch responsibilities.

Reconcile outstanding wages, any payable unused leave, and the retirement benefit. Under a lump-sum severance plan, the statutory minimum for an eligible worker is 30 days of average wages per year of continuous service. The statutory calculation generally looks at the preceding three months and uses ordinary wages as a floor if higher. Final wages and any lump-sum severance due are generally payable within 14 days of separation, unless both parties agree to extend the deadline because of special circumstances. Average wage and final pay, Severance calculation, Severance deadline.

Hiring with Borderless AI

Borderless AI supports South Korea EOR employment, including local contracts, payroll, statutory contribution administration and benefits. If you're shortlisting providers, the comparison covers delivery models and support options. South Korea EOR comparison.

Share the proposed duties, work location, manager, assignment length, gross pay, start date and work-authorization status. Ask Borderless to confirm which employment route fits and to itemize statutory employer costs, retirement funding and the service fee. Book a demo.