South Korea flag South Korea: Operating a Business in South Korea

Work conditions in South Korea

The Active Population in Figures

201820192020
Labour Force 28,303,25128,541,66428,348,936

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 68.84%68.87%69.11%
Men activity rate 77.99%77.73%77.64%
Women activity rate 59.20%59.54%60.11%

Source: International Labour Organization, ILOSTAT database

 

Return to top

Working Conditions

Legal Weekly Duration
40 or 44 hours per week.
Retirement Age
The minimum normal retirement age is 60. Employees may choose to retire early if the work contract or collective agreement permits earlier retirement.
Working Contracts
Employment contracts determine if the employee is part of the regular or non-regular staff. Permanent employees form the regular staff. Among the non-regular staff, there are different types of contract: part-time workers, temporary workers, dispatched workers, fixed-term contract workers and entrusted employees.
Labour Laws
Doing Business: South Korea, to obtain a summary of labour regulations that apply to local entreprises

Return to top

Cost of Labour

Minimum Wage
Since January 2022, the legal minimum wage is KRW 9,160 (approximately USD 7) per hour (Minimum Wage Commission).
Average Wage
The average salary in South Korea in 2020 is approximately $41,960 a year, $3,500/month (OECD).
Social Contributions
Social Security Contributions Paid By Employers: •    National Pension: 4.5% (National pension contribution is capped at a monthly salary of KRW 5,240,000)
•    Health Insurance: 3.924% (currently capped at a monthly contribution of KRW 8,203,680 in total)
•    Employment Insurance: from 1.05% to 1.65% (1.15% to 1.75% starting from July 2022), depending on the number of employees and type of industry.
•    Worker’s Compensation Insurance: 0.73% to 18.63% depending on the industry
Social Security Contributions Paid By Employees: •    National Pension: 4.5% (National pension contribution is capped at a monthly salary of KRW 5,240,000)
•    Health Insurance: 3.924% (currently capped at a monthly contribution of KRW 8,203,680 in total)
•    Employment Insurance: 0.80%

Return to top

Social Partners

Employer Associations
KEF - Korea Employers Federation
SMBA - Small and Medium Business Administration
Social Dialogue and Involvement of Social Partners
Union negotiations in South Korea take place at the national level, the sector level or the company level.
Labour Unions
Unionisation Rate
10.1% in 2012.
Labour Regulation Bodies
Ministry of Labour

Return to top

Any Comment About This Content? Report It to Us.

 

© eexpand, All Rights Reserved.
Latest Update: February 2024