Hiring in South Korea

The terms set out role, salary in KRW, working hours, holidays, leave, place of work and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Bilingual Korean and English contracts are standard for commercial roles.

Fixed-term contracts are capped at 2 years in total, after which the employee is treated as permanent, so most EORs default to indefinite terms.

Set probation from day one. An extension needs the employee's agreement and a documented reason. Ending employment during probation still needs an objectively reasonable ground.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime, night work and holiday work are paid at 1.5 times the ordinary hourly wage, rising to 2 times for holiday work beyond 8 hours.

There is no earnings threshold, so professional hires are covered unless they hold a genuine management role. Many employers build a fixed overtime allowance into salary, so put the position in writing either way.

Market practice for professional roles stays close to the statutory scale, which adds 1 day for every 2 years of service after the first, so budget leave on tenure rather than a flat figure.

There is no statutory paid sick leave, so sick pay is a matter of contract or company policy. Maternity leave is 90 days, partly employer funded and partly paid through employment insurance, so confirm which side the EOR carries.

The employer must give the reason and date of dismissal in writing, or the dismissal is invalid. Statutory severance of 30 days' average pay per year of service is owed on every exit after a year, whatever the reason.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and severance, all due within 14 days. Unfair dismissal claims go to the Labour Relations Commission and reinstatement is a real remedy, so most exits end in a negotiated mutual separation.

Supplementary medical cover, a meal allowance and group accident cover are standard for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer social insurance adds around 10 to 11% on top of gross salary, with pension capped at a monthly income ceiling. That is before severance accrual and the EOR fee.

Severance is the trap. It builds up at roughly one month's pay per year and must be paid within 14 days of leaving, so check that the EOR's quote shows how it is accrued.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and E-7 quotas and salary floors apply to the sponsor, not to you.

Set start dates after approval, not before. Hires who already hold an F-2, F-5 or F-6 visa can usually start without sponsorship.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need a lawful basis, which for employee data usually means separate written consent.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation takes several weeks, and qualifying as foreign direct investment needs at least KRW 100 million in capital. The running cost is the point: a representative director, accounting, audit thresholds and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.