If you’re a foreigner working in Korea, understanding Korean labor laws and employment contracts is crucial to ensure fair treatment, job security, and legal protection. Korea has strict labor regulations, and foreign workers are entitled to the same rights as Korean employees under the Labor Standards Act (근로기준법, Geunro Gijunbeop).
This guide provides essential information on employment contracts, wages, working hours, benefits, and dispute resolution to help foreigners navigate Korea’s work environment legally and confidently.
1. Employment Contracts in Korea – What You Need to Know
✅ Types of Employment Contracts for Foreigners
Foreign workers in Korea are usually hired under the following contracts:
✔ Permanent Employment Contract (정규직, Jeonggyujik) – Full-time, long-term employment with benefits
✔ Fixed-Term Contract (계약직, Gyeyakjik) – Temporary or project-based work (renewable or non-renewable)
✔ Part-Time Employment (단시간 근로, Dansigan Geunro) – Hourly or part-time jobs with limited benefits
✔ Internship or Training Contract (인턴십, Inteonsip) – Short-term employment with training focus
📌 Key Elements of an Employment Contract:
• Job title & responsibilities
• Salary & payment schedule
• Working hours & overtime conditions
• Vacation & sick leave policies
• Severance pay & contract termination rules
• Social insurance & employee benefits
🔹 Pro Tip: Before signing a contract, ensure all terms are clearly written in Korean & English to avoid misunderstandings.
2. Wages, Working Hours & Overtime Pay in Korea
✅ 1) Minimum Wage in Korea (최저임금, Choejeo Imgeum)
As of 2024, the legal minimum wage in Korea is:
✔ ₩9,860 KRW per hour (~$7.50 USD)
✔ ₩2,060,740 KRW per month (~$1,560 USD) for a 40-hour workweek
📌 Who is eligible for minimum wage?
• All foreign and local employees, regardless of visa type
• Exceptions: Interns, apprentices (in some cases), and specific part-time jobs
✅ 2) Standard Working Hours & Overtime Pay
Korean labor law defines the following working hour regulations:
✔ Standard Workweek: 40 hours (8 hours/day, Monday-Friday)
✔ Overtime Limit: Up to 12 hours/week (Total: 52 hours max per week)
✔ Overtime Pay: 150% of the standard hourly wage
✔ Night Shift (10 PM – 6 AM): 150% of the hourly wage
✔ Weekend & Holiday Pay: 150–200% of the hourly wage
🔹 Pro Tip: Employers must pay extra for overtime and night shifts. If your employer does not compensate overtime, you can file a complaint with the Labor Office.
3. Social Insurance & Employee Benefits in Korea
All foreign employees in Korea must be enrolled in four major social insurance programs:
✅ 1) National Health Insurance (NHI, 국민건강보험)
✔ Provides medical coverage, hospital treatment, and prescription benefits
✔ Employers and employees each pay 50% of the contribution
✔ Required for all workers staying in Korea for 6 months or longer
📌 Where to apply? – National Health Insurance Service (NHIS)
✅ 2) National Pension Scheme (국민연금, Gukmin Yeongeum)
✔ Monthly contribution: 9% of salary (4.5% paid by employer, 4.5% by employee)
✔ Refundable upon leaving Korea (for eligible countries)
📌 Who is eligible? – Foreigners on E-7, D-8, F-2, F-5 visas, etc.
🔹 Pro Tip: Some nationalities (e.g., US, UK, Canada) can receive a lump-sum pension refund when leaving Korea.
✅ 3) Employment Insurance (고용보험, Goyong Boheom)
✔ Covers unemployment benefits & job training programs
✔ Foreigners are eligible only if their employer contributes
📌 Who can receive unemployment benefits?
• Must have worked at least 6 months
• Must actively seek new employment
✅ 4) Industrial Accident Compensation Insurance (산재보험, Sanjae Boheom)
✔ Covers workplace injuries & occupational diseases
✔ Employers must provide coverage for all employees
📌 Where to apply? – Korea Workers’ Compensation & Welfare Service (KCOMWEL)
🔹 Pro Tip: Illegal or undocumented workers are still eligible for workplace injury compensation.
4. Contract Termination & Severance Pay in Korea
✅ 1) Notice Period for Termination
✔ Employees must give at least 30 days’ notice before resignation
✔ Employers must also provide a 30-day notice before termination
🔹 Pro Tip: If an employer fails to provide a notice, they must pay one month’s salary as compensation.
✅ 2) Severance Pay (퇴직금, Toejikgeum) – Lump-Sum Payment
Foreign workers who complete one full year of employment are entitled to severance pay, which equals:
✔ 1 month’s salary for each year worked
📌 Who is eligible?
• Employees working for more than 1 year
• Applies to full-time and contract-based employees
🔹 Pro Tip: Severance pay is mandatory and cannot be waived by contract.
5. Filing Labor Disputes & Protecting Your Rights
If you experience unpaid wages, workplace discrimination, or unfair dismissal, you can file a complaint with the Labor Office (고용노동부, Goyong Nodongbu).
✅ How to Report a Labor Law Violation:
✔ Call 1350 (Multilingual Labor Helpline)
✔ Visit the Local Employment & Labor Office
✔ File an Online Complaint on the Ministry of Employment & Labor Website
📌 What You Can Report:
• Unpaid wages & severance
• Unfair termination
• Discrimination based on nationality, gender, or disability
• Workplace harassment & abuse
🔹 Pro Tip: Keep pay stubs, work schedules, and employment contracts as evidence in case of disputes.
Final Thoughts – Know Your Rights as a Foreign Worker in Korea
Understanding Korean labor laws and employment contracts is essential for ensuring fair treatment and legal protection in the workplace.
✅ Quick Checklist for Foreign Workers in Korea:
✔ Always sign a written employment contract
✔ Ensure your salary meets the minimum wage
✔ Understand your rights regarding overtime pay & working hours
✔ Check if you’re covered under national insurance programs
✔ Know the severance pay & termination policies
✔ Report labor violations to protect your rights
By staying informed about your legal rights and obligations, you can work confidently and securely in Korea!