Employer Of Record (EOR) In South Korea
Skuad’s Employer of Record (EOR), South Korea, helps organizations expand their business in the South Korean market and enable them to recruit employees without actually establishing a company in South Korea. Skuad’s autonomous and progressive global HR platform helps to manage various organization activities like payroll, hiring and onboarding of talent, tax and employment law compliance, benefits, etc in South Korea.
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South Korea At A Glance
Population: 51.82 Million (2021)
Currency: Korean Republic Won
Languages: Korean, English
GDP: 1.80 Trillion
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Employment In South Korea
All employment and labor laws apply to both residents as well as foreigners. Let us take a closer look into the entitlements and laws pertaining to employment in South Korea. For establishing an organization in South Korea, it is compulsory to have complete knowledge of all the South Korean labor laws. However, these laws are complex and different from other countries. Therefore, it is advisable to get in touch with a Korean Employment Law Consultant who is well aware of all the rules and regulations of South Korea for both residents and foreigners to make the process simpler.
To ensure compliance with the South Korean employment laws, Contact Skuad.
Contractors Vs. Full-time Employees
During the hiring process, the most tricky situation that an employer faces is whether to choose contract employees or full-time employees. A contractor promises better pay and works for a specific time, whereas a full-time employee is a long-term worker who depends entirely on the employer. However, both contractors and full-time workers have their own pros and cons, so it is essential to carefully choose either of them depending on different aspects such as situation, work nature, tasks, strategies, comfort, etc.
The table given below portrays the differences between a contractor and a full-time employee.
Both employees and contractors are different from each other. However, from a business perspective, it is better to hire contractors initially and turn them into full-time employees.
Perks of hiring a contractor and turning them into a full-time employee
- You can have a secured customer base and intellectual property.
- The process of recruitment becomes much easier.
- It saves you a lot of time and money.
- There is less scope for lawsuits and legal action.
- It ensures instant productivity and can expand your entity in a short span.
Hiring In South Korea
The hiring process in South Korea is not too different from that of any other country. However, there are several employment laws that are responsible for the relationship between employers and employees. The employment landscape in South Korea is governed by laws such as the Act on Equal Employment and Support for Work-Family Reconciliation, the Framework Act on Employment Policy, the Employment Security Act, and so on.
According to the South Korean employment laws, it is mandatory to have an employment agreement with the employees. Skuad makes sure that the employment contract meets all the requirements for every employee. However, the recruitment process is the same for full-time employees as well as contractors.
The step-by-step process of the recruitment process is as follows
Step 1: Korean Language Entrance Examination (EPS TOPIK).
Step 2: Medical Examination.
Step 3: Job Application.
Step 4: Job Seekers Record is sent to Human Resource Development (HRD) Korea.
Step 5: Job Seekers Record is approved by HRD Korea.
Step 6: Employers apply to the Ministry of Employment and Labor (MOEL) for foreign worker employment.
Step 7: Selection of employees by the employer and allotting of employment permits by MOEL.
Step 8: Signing of the employment agreement of South Korea at EPS Korea.
Step 9: Employer applies for the Certificate of Confirmation of Visa Issuance (CCVI), and the Ministry of Justice issues the certificate.
Step 10: The employees arrive in South Korea.
Step 11: Training of employees.
Step 12: Employees receive work.
Most companies hire their workforce through popular job search platforms. Some of the best job searching platforms for employment in South Korea are JobKorea, Jobplanet.com, Seramin, Alba.co, Findjobs.co.kr, Jobs in Korea, Glassdoor, Craigslist and more.
There are several benefits and disadvantages to hiring employees through job portals. Below is a table showing the pros and cons of hiring through job searching platforms.
If you are concerned about this crucial process, partnering with Skuad’s local HR will take care of all matters related to overseas employment. Skuad enables organizations to hire talented full-time employees and contractors and onboards them to South Korea with employment contracts that obey all the local laws via its unified employment platform. Its global HR platform also takes care of payrolls and manages all the legal and administrative issues such as documentation, taxation, compliances, etc.
For more information and queries, talk to Skuad’s experts by submitting your personal information here.
Probation And Termination
The standard probation period in South Korea is between three to six months, and, in some cases, it can end up being two years. For more information on the probation of employees in South Korea, connect with Skuad by booking a demo.
Termination of employment
EOR Solution South Korea
Working with an Employer of Record Service (EOR) in South Korea will ensure that you do not face any logistical and legal issues while expanding your market in South Korea. Skuad helps you deal with various aspects such as hiring employees, securing work permits, making sure all the employment laws are obeyed, onboarding, payroll services, contracts, taxation, etc., so that you can run your business in South Korea without any legal and regulatory challenges.
Outsourcing employment through an Employer of Record
Before expanding your entity in South Korea, it is crucial to decide whether you want to hire employees from your own company or outsource employees through an EOR to fulfill your duties.
Types Of Visas In South Korea
How to obtain a South Korean visa
The employees are required to submit the following documents to obtain a work visa.
- Employment Contract
- Letter of Assignment
- The certificate of establishment of an organization
- A copy of a license
- Degree certificate
- Visa application
- A standard photocopy
- A passport copy
Learn more about work visas in South Korea by reaching out to Skuad.
Work Permit In South Korea
South Korea doesn’t have a concept of work permits. The immigration process only requires visas. For more details regarding work permits, reach us through Skuad.io.
Payroll And Taxes In South Korea
As an overseas organization, you should be aware of all the payroll and tax information before setting up a payroll in South Korea. By partnering with an EOR such as Skuad, the EOR provides payrolls for all the employees in South Korea along with taxes, security payments, and so on.
There are four types of payroll in South Korea.
- Remote Payroll
- Fully Outsourced Payroll
- Internal Payroll
- Local Payroll
Remote Payroll - When an overseas company payrolls resident employees in South Korea, it is called Remote Payroll.
Fully Outsourced Payroll - When an organization outsources the payroll of their employees to a third-party company that takes care of the payroll, it is called Fully Outsourced Payroll.
Internal Payroll - Large organizations run their own payroll outsourcing in South Korea for their employees to grow their entity; this is called Internal Payroll.
Local Payroll - When an organization takes the help of a local company to manage its payroll processes, but the organization remains responsible for compliance issues, it is called Local Payroll.
Taxation in South Korea
The table given below lists the taxes in South Korea:
There is no limit to business opportunities in South Korea. Before setting up a business in South Korea, you must consider various factors such as the type of your business, trade agreements, legal laws, taxes, language, cultural factors, free economic zones, the hiring process, and so on. Based on the subsidiary laws of South Korea, you have a choice in setting up any of the business structures such as a company, a foreign branch, or a liaison office. However, each business structure comes with its own set of subsidiary laws.
The process of incorporating a holding company in South Korea is as follows:
- Create your Company Seal.
- Select a bank for Capital Deposit.
- Register your entity.
- Register at the Court Registration Office.
- Complete your Business Registration.
- Pay the Social Security Registration fee.
- Establish your workplace.
- Fulfill the employment rules.
However, establishing a company in South Korea is not as easy as it sounds. Skuad makes the process simple for you by taking the responsibility of an EOR and helping you in successfully expanding your business in South Korea. Learn more about Skuad here.
Professional Employer Organization (PEO)
A Professional Employer Organization (PEO) is an outsourcing department that provides HR services such as payroll process, taxation, hiring, training, onboarding, etc., to small companies.
Difference Between PEO And EOR
A PEO acts as a partner of your entity by providing HR-related services and taking care of all liabilities and responsibilities. A PEO provides services to any organization that has a registered company overseas. In comparison, an EOR acts as a legal employer and provides the same services as a PEO. But, an EOR helps you to set up your entity in a different country.
Skuad takes all your legal responsibilities and makes it easier for you to expand your firm in a different country through its influence and connections.
Skuad helps in building your kingdom overseas and takes over all of your workforce responsibilities. Get started by connecting with the team here.