South Korea

Last Update by Katie, 09 Jul 2024

You must log in to be able to download this document

Exchange Rate

18 Sep 2024

 

Cost of Living

Indicative value for a working adult in a city: Seoul

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (KRW)
McDonalds Set Meal 8,000
Monthly Train and Bus Tickets 60,000
3 Bedrooms Rental (City Center) 3,600,000
3 Bedrooms Rental (Outskirt) 1,997,000

Current Inflation Rate

5%

Wage

Minimum Wages

  • 2,060,740 KRW per month or 9,860 KRW per hour as of 1st January 2024

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (KRW)
Entry-Level
Fresh Graduate
 2.5 million
Mid-Level
5 Years
 4.5 million
Experienced & Managerial Level
10 Years
 10 million
Specialized & Senior-Level
15 Years
 >15 million

Annual Salary Growth

5.1%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
National Pension (NP) 4.5%
Capped at 265,500 KRW 		4.5%
Max. monthly pension based on 265,500 KRW 		All staff
Medical Insurance 3.545% - All staff
Long Term Care Contribution 12.95%
Based on Medical Insurance 		0% All staff
Industrial Accident Compensation Insurance 0.86% 0% All staff
Damage Relief for Asbestos Damages 0.006% 0% All staff
Employment Insurance (EI) 1.75% 0.9% All staff
National Health Insurance (NHI) 3.999% 3.999% All staff capped at 8,824,598 KRW
Handicapped Employment Levy 3.1% - 3.8% - All staff
Wage Claim Levy 0.06% - All staff
Business Tax 0.5% - All staff

Other Benefit

Other common employment benefits in South Korea include:

  • Education Assistance: up to 30,000 USD / year at International School.
  • Retirement Allowance: round 90,000 KRW / month
  • Transportation Allowance: round KRW20,000 KRW / month
  • Phone Allowance: Around 45,000 KRW / month

Income Tax

Residents

  • Tax period: 1st January- 31st December of the previous year.
    The filing start date: 1st May of the following year.
    The filing due date: 31st May of the following year.

Country Level

Taxable Income Rate
0 – 14,000 6%
14,000 – 50,000 15%
50,000 – 88,000 24%
88,000 – 150,000 35%
150,000 – 300,000 38%
300,000 – 500,000 40%
500,000 – 1,000,000 42%
> 1,000,000 45%

Non-residents

  • Flat rate 19%

Working Hours

Statutory

40 hours
8 hours a day, 5 days a week

Typical practice

40 Hours
Monday - Friday/ Satirday

Overtime

Up to 12 hours a week.

  • - Workdays & Public holidays: 150% normal rate of pay
    - Weekend/Holidays: 200% normal rate of pay
    - Weekend/Holidays (22:00 to 06:00): 250% normal rate of pay
    - Time off in-lieu for the hours worked, agreement by both parties

Employment Contract

Fixed-Term

Used for completing specific projects, tasks and seasonal short-term activities

Contract Format

In writing, in Korean. Bilingual contracts are also accepted.

Payroll Currency

KRW

Probation

Typical practice 3 - 6 months

Contract Period

Up to 2 years, no limit on renewals. Contracts extended over 2 years automatically become permanent. Contracts for senior citizens over 55, specific projects and contracts held by those with doctorate degrees may exceed 2 years.

Termination

  • Involuntary termination:
    - Over 3 months' service: 30 days notice in writing
  • Severance (retirement bonus):
    - Staff with 1 years service qualify including during voluntary resignation
    - 30 days average salary for each year of continuous service

Public Holiday

13 days

Country Level

Date Name
01 Jan New Year's Day
09 Feb - 11 Feb Korean New Year (Seollal)
01 Mar Independence Movement Day
10 Apr The 22nd parliamentary election
01 May Labor's Day
05 May - 06 May Children's Day
15 May Buddha's Birthday
06 Jun Memorial Day
15 Aug Liberation Day
16 Sep - 18 Sep Chuseok
03 Oct National Foundation Day
09 Oct Korean Alphabet Day (Hangeul Day)
25 Dec Christmas Day

Leave

Leave Type Entitlement Notes
Annual Leave 15 working days if worked < 292 days
up to 25 days 		All staff with 1 years' service
1 day for every 2 years' service, capped at 25 days
Maternity Leave 90 working days
120 working days for twins 		All expectant mothers with 1 years' service
Paternity Leave 10 working days All eligible male employees request to use within 90 days after the delivery date and allow to divide the leave period into 2 separate occasions.
Menstruation Leave 1 day per month All female staff
Nursing Leave 30-mins paid break 2 times a day All eligible mothers with children under 12 months who have go back to work
Childcare Leave and Reduced Work Hours 1 - 2 years All eligible mothers who have child under 8;
i. 1 year of childcare leave plus 1 year of reduced work hours.
ii. 6 months of childcare leave plus 1 year and
iii. 6 months of reduced work hours; or no childcare leaves plus 2 years of reduced work hours.

Reference

Ready To Expand in South Korea?

Have any questions? We’d love to hear from you

Contact Us