Employer of record in South Korea: costs and rules

How Korean employment differs from US hiring

The pension rate went up in January 2026. The National Pension is now 9.5% of pay, split 4.75% each, and it rises half a point a year toward 13%. Pages written before 2026 still show 9% (4.5% employer). The income base runs from KRW 410,000 to KRW 6,590,000 a month from July 1, 2026 (KRW 400,000 to 6,370,000 before that), so a salary above the top of that band pays pension on the ceiling only.

Health insurance is 7.19%, split evenly, and long-term care adds 13.14% of the health premium. Employment insurance costs the employer 0.9% plus a job stability and skills charge of 0.25% to 0.85% depending on firm size. Because the EOR's Korean company is the employer, ask which band it pays: at 0.85% the sample below rises by KRW 336,000 a year.

Leave builds with attendance. Under Labor Standards Act art. 60 a worker gets 1 day per month in the first year, 15 days after a year with at least 80% attendance, then 1 more day every 2 years after 3 years, up to 25. Presidential Decree public holidays are paid (art. 55(2)), a rule extended to workplaces with 5 to 29 employees in 2022, on top of a paid weekly holiday (art. 55(1)).

The minimum wage is KRW 10,320 an hour in 2026 and is set at KRW 10,700 for 2027. There is no statutory bonus. We have not confirmed a statutory probation limit, payroll frequency or standard week from an official source.

Employment costs and rules in South Korea

What an EOR charges to employ someone in South Korea

KRW 56 million salary: the full employer bill

The 18.30% figure uses the lowest job-stability band and excludes industrial accident insurance, which the employer alone pays at a rate set by industry. The health insurance cap was not checked. Try other pay levels in the employee cost calculator for other countries, or see where Korea sits in the country-by-country EOR cost index.

Ending employment in Korea

An employer must give at least 30 days' notice of dismissal or pay 30 days' ordinary wages instead (LSA art. 26); the rule does not apply to employees with under 3 months of continuous service. The retirement allowance is due under the Act on the Guarantee of Employees' Retirement Benefits (LSA art. 34). Our sample accrues it at 8.33% of pay, one month a year; we have not yet confirmed the exact statutory formula from the official text, so ask the EOR how it accrues and invoices it.

Picking a provider for Korea

Multiplier scores 79 and Oyster 64 on our published scoring method. Multiplier charges $459 a month billed annually or $499 monthly and says it uses owned entities, though about 11% of countries carry adjusted pricing, so get the Korea price in writing. Oyster charges a flat $699 and holds a deposit of at least one month of total service cost. Remote (62) and Deel (54) list $599. Our ranked list of EOR providers has the full scores, and the Remote, Deel and Oyster reviews cover their contracts and complaints.

Running your own Korean entity instead

Each EOR hire costs $7,188 a year in fees at $599 a month. A Korean subsidiary replaces that with incorporation, a local payroll provider and your own insurance registrations. Our entity versus EOR comparison sets out when the switch pays off.

Freelancers and contractors in Korea

A contractor arrangement avoids the four insurances and the retirement allowance, which is exactly what makes it risky when the person works full time under your direction. If it is reclassified, the unpaid allowance and insurance shares are the exposure. Use a contractor platform for real freelancers, or a contractor of record if you want someone else to carry the classification risk.