South Korea

Employment taxes

Taxes in South Korea are straightforward once you get the hang of them:

• Income tax: Progressive, ranging from 6% up to 45%, depending on how much you earn.
• Employee social contributions: You’ll pay your share into the National Pension (4.5%), National Health Insurance (3.5%), and Employment Insurance (0.9%).

Leave policy

• Annual leave: 15 paid vacation days after one year, plus one extra day for every two years of service (up to 25).
• Sick leave: Not strictly mandatory by law, but many employers offer it.
• Maternity leave: 90 days fully paid by the employer, of which 60 days of this payment is paid by the employer, and the remaining 30 days can be reimbursed from the Social Security.
• Paternity leave: Up to 10 paid days fully covered by the Social Security.
• Parental leave: Either parent can take up to one year of unpaid leave to care for a child under 8. This leave is paid at different rates and covered by the government.

Employment termination

• Employers must give at least 30 days’ notice (or pay in lieu).
• Employees with one year or more of service are entitled to severance pay, usually one month’s salary per year worked.
• Dismissals must have a valid reason and follow proper documentation procedures.

Hiring and contracts

• Employment contracts must be written and clearly outline salary, hours, benefits, and duties. Contracts must be in Korean and English and can be bilingual
• Probation periods typically last up to 6 months.
• Contracts can be indefinite or fixed-term, but after repeated renewals, fixed-term workers may be considered permanent.

Payroll and salary payments

• Salaries are usually paid monthly.
• The national minimum wage is KRW 2,096,270 per month (EUR 1,268/ USD 1,490)
• Payments are made in Korean won (₩) directly to your local bank account.

Benefits

Mandatory:

• National pension
• National health insurance
• Employment insurance
• Industrial accident insurance
• Maternity/paternity leave

Optional:

• Performance bonuses
• Meal or transportation allowances
• Private health insurance
• Housing support
• Sick leave

Monthly living cost (Seoul Edition)

• Rent (1-bedroom apartment): €600-€1,200 / $650-$1,300
• Utilities & Internet: €100-€150 / $110-$160
• Public transport pass: €45 / $50
• Groceries & dining: €350-€600 / $380-$650
• Health insurance & extras: €60-€100 / $65-$110

How to get a local ID number

Once you arrive and register your address, you’ll get a Resident Registration Number (RRN) similar to a social security number.

• It’s issued by your local district office (gu office).
• You’ll need it for opening a bank account, signing a lease, or accessing healthcare.
• Remote workers staying short-term can apply for an Alien Registration Card (ARC) if eligible.

Social Security Registration

Both you and your employer register with the National Pension Service (NPS) and National Health Insurance Service (NHIS) after hiring. Employers usually handle the process.

Banking

South Korea’s banking system is efficient and tech-friendly. You can do almost everything online or through mobile apps. Popular banks include:

• KB Kookmin Bank
• Shinhan Bank
• Woori Bank
• KEB Hana Bank

To open an account, bring your passport, alien registration card, and proof of address.

Housing and rental process

Finding a home in Korea means choosing between:

• Jeonse (key money lease): Pay a large deposit upfront, then no rent.
• Wolse (monthly rent): Pay a smaller deposit plus monthly rent.

Most rentals require a real estate agent (budongsan).
Tenant rights:

• Deposits are protected by law.
• Landlords must provide proper notice for eviction (usually 3 months).
• Contracts must be registered with the local government for legal protection.

Healthcare system

Korea’s public healthcare system is efficient, affordable, and high-quality.

• Everyone contributes to National Health Insurance and gets access to hospitals and clinics nationwide.
• Many people also buy private insurance for extra coverage or faster service.
• Pharmacies are everywhere and often open late.

Driving and public transport

You won’t need a car, public transport is world-class.

• Subways, buses, and high-speed trains are clean, safe, and punctual.
• You can use a T-money card for all transport.
• Foreigners can drive with an International Driving Permit (IDP) or exchange their foreign license after registration.

Emergency and important contacts

• Police: 112
• Fire/Ambulance: 119
• Foreign Resident Hotline: 1345 (available in several languages)

Work permit and visa requirements

• All foreign citizens need a valid work visa to work and live in South Korea.
• Common work visas: E-7 (Skilled Professionals), E-2 (Language Instructor), D-8 (Investment), D-10 (Job Seeker).
• You’ll need to apply for the correct visa before entering South Korea.
• Your employer must sponsor your work permit and submit required documentation.
• Once you arrive, register with immigration within 90 days to get your Alien Registration Card.

Business culture and work norms

• Hierarchy matters: Use titles, show respect to seniors, and don’t interrupt.
• Punctuality is key: Being on time is non-negotiable.
• Team spirit: Decisions often come from the top, but collaboration is valued.
• After-hours socials (hoesik): Great for bonding, but not mandatory.
• Dress code: Neat and professional, business attire is the norm.