Introduction 

South Korea is a dynamic and high-growth market, but it’s also one of the more complex countries when it comes to labour law. With strict working time limits, strong employee protections, and unique local practices like the seniority wage system, international employers need to tread carefully. Non-compliance can result in fines, reputational damage, and employee unrest. According to the OECD, South Korea has one of the highest rates of industrial action in developed economies, often triggered by employment rights concerns.

As someone who has supported multiple organisations entering the South Korean market, I’ve seen how easy it is to get it wrong - and how much smoother things go when companies invest in doing it right from the start.

Quick Tips

• Weekly working hours must not exceed 52, including overtime - and this is strictly monitored.

• Probation periods are common but must still comply with minimum termination notice rules.

• Severance pay is mandatory for employees with one year or more of service.

• Fixed-term contracts require careful justification and carry conversion risks.

• Trade unions are active and have significant influence - anticipate and engage early.

Working Time and Overtime Rules Are Not Optional 

In 2018, the South Korean government reduced the legal maximum weekly working hours from 68 to 52 - 40 standard hours plus 12 hours of overtime. While enforcement was phased in gradually, it’s now fully active and breaches are taken seriously.

For example, I worked with a UK tech firm setting up a satellite office in Seoul. Their global culture favoured flexible hours and ‘crunch time’ during product launches. But this clashed with local law, where even white-collar employees can’t lawfully waive overtime protections. We supported them in implementing a compliant time-tracking system and adjusted workloads to fit within local limits. Staff wellbeing improved, and legal risks were avoided.

Employment Contracts and Terminations Require Precision 

South Korean labour law heavily favours employees when it comes to termination. Dismissals must be justified by urgent managerial necessity and follow fair procedures. There’s no such thing as ‘at-will’ termination here. This surprises many international employers used to more flexible regimes.

Probationary employees are not exempt from protection, and severance pay of at least 30 days’ wages is due for any employee who has completed a year of service - even if they resign voluntarily. One client I supported had used a 6-month probation template from another APAC country, only to face a claim when the employee was let go on month five. A costly mistake - and one that could have been avoided with the right contract review.

Cultural Nuances Matter 

Beyond legislation, there are important cultural expectations that shape employment relationships in South Korea. Age-based hierarchies, indirect communication styles, and a deep respect for job security all influence how HR policies are received.

In one case, we advised a US startup expanding to Seoul on their performance management approach. Their direct, feedback-heavy style didn’t resonate locally and created resistance. With small adjustments - including using team-based reviews and ensuring face-saving communication - they built trust without diluting their standards.

Understanding these nuances isn’t about pandering - it’s about respect. And in South Korea, respect is everything.

A Real Example: Preventing Penalties Before They Happen 

I once supported a global manufacturer onboarding 60+ employees in South Korea as part of an M&A deal. Their global HR systems weren’t set up for Korean wage statements, timekeeping formats, or severance tracking. We built local processes that integrated smoothly with their global structure, keeping them compliant and transparent.

The result? No disruption, no union friction, and a smooth transition for all involved. And more importantly, a solid base for future growth.

Final Thoughts 

South Korea rewards companies who play by the rules. Labour law is seen as a matter of fairness and public duty - and the government has the enforcement muscle to match. If you’re expanding into the region, make sure your HR strategy is localised, your contracts are watertight, and your culture respects what matters to Korean employees.

What’s next for your global people strategy? 

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you’re entering South Korea for the first time or reviewing your current operations, we’ll help you avoid risk and set your team up for long-term success - with clarity, confidence, and cultural competence.