Capital and key business cities: Seoul is the capital and largest business hub; Busan, Incheon, Daegu, Daejeon, Gwangju, Ulsan, Suwon, and Changwon are major industrial cities.

Official language and currency: Korean; South Korean Won (KRW).

Time zone: Korea Standard Time (KST), UTC+9, no daylight saving.

Population and labour force: Approximately 51.7 million (Statistics Korea). Working-age population is declining and ageing rapidly. Foreign labour force is growing, mainly through the Employment Permit System (E-9) and professional visas (E-7).

Key industries: Semiconductors, automotive, shipbuilding, steel, petrochemicals, display panels, ICT, bio-health, cultural content, finance, and logistics.

Economy and legal system: Unitary state with a civil law system. Labour standards are set nationally by the Labour Standards Act and related laws. Local governments do not have independent legislative power over minimum wage or public holidays, but local employment policies and subsidies vary.

Labour authority: Ministry of Employment and Labour (MOEL) oversees labour standards, occupational safety, employment policy, and labour inspection. Regional labour offices handle local inspections.

Unions and collective bargaining: Union density is around 10–15%. Unions in large corporates, public sector, metal, and automotive industries are influential. Collective agreements may provide better terms than statutory minimums.

Foreign labour and remote work: Foreign workers are concentrated in manufacturing, construction, agriculture, fisheries, and services. Remote work is common in IT, finance, and professional services, but cross-border remote work raises tax residency, permanent establishment, social insurance, and visa compliance risks.

Risks for foreign employers: Language and cultural differences, strict dismissal rules, union relations, foreign visa quotas and salary thresholds, social insurance and tax withholding, personal data protection, and enforceability of non-compete clauses.

Note: For specific investment, employment, and visa arrangements, engage Korean lawyers, tax advisors, and licensed immigration consultants.

Source: Statistics Korea, Ministry of Employment and Labour, Korea Immigration Service.

Core laws: Labour Standards Act, Act on Labour Relations Adjustment, Trade Union Act, Equal Employment Opportunity and Work-Family Balance Assistance Act, Act on Protection of Dispatched Workers, Occupational Safety and Health Act, Personal Information Protection Act, Fair Trade Act.

Employment standards: Apply to workplaces with 5 or more employees; some provisions exempt smaller workplaces. Written contracts should specify wages, hours, leave, and dismissal.

Anti-discrimination and equal employment: Prohibits discrimination based on gender, nationality, religion, age, disability, etc. Equal pay for equal work. Workplace harassment and sexual harassment are prohibited; employers must establish grievance and investigation mechanisms.

Occupational health and safety: Employers must conduct risk assessments, safety training, and health checks. Serious accidents can lead to criminal liability.

Privacy and background checks: Personal data collection requires consent, purpose limitation, and data minimisation. Criminal records and health information are strictly restricted.

Minimum wage: Determined by the Minimum Wage Commission and announced by MOEL, applies nationwide. 2026 rate subject to official announcement.

Wage payment: Must be paid in currency, in full, at least once per month. Payslips must show components, deductions, and calculation basis.

Working hours and rest: Statutory 40 hours per week, 8 hours per day; maximum 52 hours per week including overtime (with transitional arrangements for some industries). 30-minute break after 4 hours, 1 hour after 8 hours.

Overtime: Overtime, night work (22:00–06:00), and holiday work are generally paid at 1.5 times. Compensatory leave may be allowed in some cases.

Public holidays and annual leave: Public holidays under the Regulations on Public Holidays of Government Offices. Annual leave under Labour Standards Act Article 60: 15 days for 80%+ attendance in the first year, plus 1 day every 2 years, capped at 25 days.

Sick leave: No general statutory paid sick leave; industrial accidents covered by workers' compensation. Some employers provide contractual sick leave.

Probation: Typically 3 months; dismissal during probation still requires just cause.

Fixed-term contracts: Generally not exceeding 2 years; continued employment beyond 2 years may be deemed permanent.

Confidentiality, IP, non-compete: Permissible but non-compete must be reasonable in scope, duration, and compensation, otherwise may be invalid.

Labour inspection and penalties: MOEL may inspect, order corrections, and impose fines; violations of hours, wages, dismissal can lead to criminal penalties.

Record-keeping: Employment contracts, wage ledgers, time records, and leave records must be kept for statutory periods.

Source: Labour Standards Act, MOEL current guidance.

2026 public holidays (subject to government announcement):

Note: Lunar holiday dates vary annually; subject to government announcement. Some holidays may be adjusted.

Source: Regulations on Public Holidays of Government Offices.

Permanent contract: Standard form; dismissal strictly regulated.

Fixed-term contract: Generally up to 2 years; beyond may convert to permanent.

Part-time: Pro-rata wages, leave, and social insurance.

Temporary/daily workers: For short-term, seasonal work.

Dispatch: Must be employed by licensed dispatch agency; dispatch roles limited by law; generally up to 2 years.

Independent contractor/freelancer: No employment relationship; Labour Standards Act does not apply, but misclassification risk is high.

Interns/apprentices: Minimum wage and safety rules apply; some internships exempt.

Project-based: Hired for project duration; may still be deemed employment.

Remote employees: Permissible but must comply with hours, safety, tax, and visa rules.

EOR/PEO: Foreign companies without a Korean entity may use EOR, but must ensure compliance.

Misclassification risk: Sham subcontracting may be deemed employment, leading to social insurance, tax, and penalties.

Source: Labour Standards Act, Act on Protection of Dispatched Workers.