South Korea – Innovare Group

Expand into South Korea with Innovare

Easily navigate South Korea’s distinct business environment with Innovare’s all-inclusive EOR solutions. From detailed immigration assistance to smooth payroll management.

Brief Overview

Innovare South Korea

Innovare South Korea, a cornerstone of the Innovare Group, empowers seamless business expansion into South Korea’s thriving market. Our comprehensive EOR services leverage our deep expertise and unwavering commitment to compliance, ensuring a smooth adaptation for your venture within the local business landscape.

Expert navigation through South Korea’s dynamic economy.

Streamlined processes for employment and payroll management.

Unwavering dedication to adhering to local regulations.

Specialised support for staff outsourcing in South Korea.

Local Expertise

Country-Specific Solutions

Onboarding

South Korean law mandates employers to provide a written employment contract outlining key employment terms to new hires within 30 days of their start date. This contract fosters transparency by clearly detailing job duties, work schedules, compensation, and leave entitlements, establishing a strong foundation for the employment relationship.‍

Payroll Services

South Korea enforces monthly salary payments within a timeframe dictated by the contract. The standard work week is 40 hours, with overtime (maximum 12 hours) pay mandatory for exceeding these hours.

Salary Payment: There is no statutory regulation regarding pay date provided employee is paid at least monthly. However, since social insurances’ contributions are due every 10th of the month hence, most employers set the pay date on the last working day of the month.
Standard Workweek: 40 hours.
Overtime Pay: Mandatory for exceeding 40 hours per week but not exceeding 12hours per week. Employers must pay 1.5 times or more of the ordinary wage for regular overtime work.

Taxes

South Korea operates a progressive tax system, meaning tax rates increase as income rises. Here’s a breakdown of the general tax structure for reference):

Personal Income Tax: Ranges from 6% for income below KRW 14 million (Korean Won) to 45% for income exceeding KRW 1 billion.
Local Income Tax: Beside from PIT, there is also a local income tax that is assessed at a rate of 10% of the personal income tax rate.
Resident vs. Non-Resident: A resident is an individual who has been a resident in Korea for 183 days or more hence, current income tax rate is applicable to these individuals. However, foreign expatriates and employees who will start to work in Korea no later than 31 December 2026,depending on their annual salary are able to apply for a flat income tax rate of 19% (excluding local income tax) rather than the normal progressive rate.

Leave

South Korean labour laws grant employees various leave entitlements to promote work-life balance and employee well-being. Here’s an overview of some key leave provisions:

Annual Leave: South Korea mandates a minimum of 15 annual leave days after one year of service and additional 1 day paid leave for every 2 years of continuous employment, with some companies offering more generous leave policies.
Maternity/Paternity Leave: Female employees are entitled to 90 days of paid maternity leave, a compulsory use of 45 consecutive days of leave after childbirth. This leave can be extended to 120 days for multiple births or complex deliveries. And 10 days paid paternity leave to be applied within 90 days after childbirth.
Child Care Leave: Employees who have a child aged not more than 8yrs old are eligible for 1-year unpaid childcare leave.
Sick Leave: While there's no statutory sick leave entitlement, many companies offer paid sick leave as part of their benefits package.
Public Holidays: South Korea observes 13 public holidays throughout the year. Employees are entitled to paid leave on these days.

Termination

Employers with 5 or more employees cannot terminate an employment contract without just cause with the burden of proof falls on the employer. Termination during maternity leave and childcare leave is also prohibited.

For fixed term contract, it cannot exceed 2 years or it will become an indefinite contract. Early termination of fixed term contract requires ad hoc compensation to employee.

Termination procedures in South Korea require adherence to specific notice periods or pay in lieu of notice and severance pay. Here’s a general overview of the termination process:

Notice Periods: Under the law, employers must give 30 days’ advance notice prior to dismissal, failure to do so, employer is obliged to pay the employee their wages in lieu for not less than30 days (i.e. dismissal allowance). Despite no regulation on employees voluntarily resigning, employees should provide a resignation letter and give decent notice.
Severance Pay: Required for each employee who has worked for at least one year, at the equivalent of 30 days’ average wages for each year of continuous employment. Severance pay is obligatory for employees who have worked for more than one year, regardless of the reason.

South Korean Market Insights

Technological Powerhouse

South Korea boasts a highly developed technological infrastructure and a skilled workforce at the forefront of innovation. This dynamic environment creates exciting opportunities for businesses in sectors like electronics, IT, and telecommunications.

Strategic Location

Situated in Northeast Asia, South Korea serves as a gateway to the broader region. This strategic location offers easy access to a vast consumer market, making it an attractive hub for international expansion.

Government Support

The South Korean government actively promotes foreign investment through business-friendly policies and incentives. This supportive environment fosters a stable and predictable landscape for companies looking to establish a foothold in the market.

Global Reach

Comprehensive Solutions, Tailored for You

Swiper Example

FAQ

You've got questions, and we have the answers.

1) What documents should the client have ready to avail EOR services from Innovare in South Korea?

Assignment details with job location, job title and description, industry, monthly salary, contract duration and candidate’s information. Candidate’s information should include nationality, educational level, Updated CV and brief job description. Innovare will then provide free assessment and advice based on the Customer’s information.

2) Do you assist clients with company incorporation in South Korea? If so, to what extent do you provide support?

No, we do not offer incorporation services in South Korea but we can refer expert who provides such service to interested company.

3) What does the process of getting started with Innovare for EOR services in South Korea actually entail?

After initial assessment, the Customer to confirm on the eligibility of the candidate and sign contract with Innovare. Innovare will then proceed for onboarding preparation depending on the nationality or current visa status of the candidate. Local/PR onboarding is quite straightforward and we will provide guidance to customers.

4) Does Innovare also support businesses with other aspects of setting up a business, such as becoming a member of a chamber of commerce or taking advantage of particular government schemes or grants in South Korea? If yes, to what extent does that support extend?

Unfortunately, we do not have the capability to support this kind of service at the moment but we can recommend options for the Customer to explore.

5) How does Innovare assist clients with visa and work permit requirements in Japan? What documents do you require from clients to facilitate the visa application process?

Innovare can support the D7 visa (Intra-company transfer visa) with a limited quota. We will provide free initial assessment for client on candidate’s eligibility for D7 visa. Alternatively, the Customer can sponsor the work visa on their own and subcontract to Innovare to handle payroll, tax and social insurance management.

The initial documents for assessment of eligibility for D7 visa (Intra-company transfer visa) from the candidate includes:

Passport copy – scanned copy of all pages, including blank pages, with a minimum of 18 months validity
Highest Academic Qualification cert: Bachelor’s/Masters/Doctorate degree, etc. Marksheets or Transcript of Records; must be in English, otherwise it must be translated by any official translation company with company stamp at home country.
Job title and job description
Company Industry (where the candidate will be assigned)
Estimated Monthly Salary
Updated CV/Resume

When the candidate is eligible or we have quota for D7 visa, we will provide the documents for visa application either for signature or additional information. Thereafter, we will process the visa in South Korea immigration, once visa is approved, candidate must collect it to South Korea embassy of his/her home country and enter South Korea respectively.