Employer Of Record&PEO South Korea - Hire Without an Entity
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PEO in South Korea

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INS Global works as your local partner in foreign markets to provide global Human Resources services. With the help of our experienced PEO/EOR service experts, you can find employees, set up operations, and start working in over 80 countries worldwide, all without the hassle that typically accompanies global expansion. 

PEOs (Professional Employer Organization), sometimes referred to as EORs (Employer of Record), are local partners for companies that are expanding into foreign markets. PEOs in South Korea can help these companies to outsource their HR services and enter new countries without having to deal with the complex issues that often arise.   

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A PEO in South Korea can legally employ your South Korean staff for your company and manage the employee services that affect daily operations. This can include tasks like payroll outsourcing and benefits, saving your company time and money that can be used in more productive ways.  

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PEO in South Korea - Summary

Advantages of South Korean PEO Solutions Over Company Incorporation

Creating a new company within a foreign country can be a stressful, complex process that requires a legal entity with a physical presence in that target country. The advantages presented by a PEO allows for a company to operate in a foreign market without forcing them to go through the necessary steps of forming and incorporating such a new entity.  

A PEO Solution Can:

  • Save your company time  
  • Save your company money 
  • Helps you to avoid potential legal and bureaucratic pitfalls 
  • Utilize local networks for optimal efficiency   
Hiring an Overseas Employee

The Five Unique Advantages Provided By a PEO in South Korea

Guaranteed Accordance with Local Regulations

The expertise provided by a PEO expert in local legal requirements will ensure that your company remains compliant with every aspect of local regulations, even as they change.  

Reduction in Cost and Time

Whenever simple mistakes happen within HR, it can cause a disproportionate amount of fees and fines. These mistakes are especially prominent when entering a new market. A PEO can reduce these mistakes, saving your company time and money.  

Clearer Focus on Company Expansion

PEOs provide several essential services, like payroll outsourcing, recruitment, headhunting, and contractor management. You and your employees can rest easy while PEO professionals handle these HR processes, leaving you time to focus on what really matters.  

Quicker Entry into New Markets

Estimated time for Company Incorporation in a new market: 4-12 months  

Estimated time to establish a PEO relationship: 5 days  

*Global estimate  


A Single Platform for Everything You Need

A PEO in South Korea can handle the intricate details of HR and provide you with a single point of contact to ease the burden of HR problems and simplify the solutions. 

How Does a PEO in South Korea Work?

INS Global’s PEO in South Korea manages your employee assignment and recruitment needs by following these 4 basic steps:  

  1. We discuss what plan would best serve you through understanding your requirements, working with you to create whatever plan you need 
  2. Our organization will provide you with a legal entity through which you can bring in employees to begin operations in South Korea.  
  3. Our professionals take on the legal and clerical tasks related to hiring and paying your staff 
  4. Your employees will be able to handle daily business and work towards your company’s success in South Korea, while we handle the hassles associated with HR 


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.


PEO OR EOR? What’s the Difference?

When entering South Korea with the intention of creating a PEO/EOR agreement, it’s necessary to first fully understand the difference between them to make sure you are making an informed decision. 

  • A PEO is a separate company that will provide HR services to the employees of other companies around the world 
  • The services that a PEO provides include payroll outsourcing, legal compliance, taxes, and others.
  • An EOR is similar to a PEO in that it’s also a separate company that provides HR services, but will also legally hire the employees for other companies. 
  • One crucial difference between a PEO and an EOR is that the EOR is legally liable for all recruitment and hiring of employees.
  • Once you’ve signed a PEO agreement, the employment contracts of your employees will still remain between your company and these employees.
  • Once you’ve signed an EOR agreement, the employment contracts of your employees will be made fully between the EOR and the employees.

In South Korea both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements 

Labor Law in South Korea

Employment Contracts in South Korea

The main source of employment law in South Korea is derived from the Labor Standards Act (LSA). This act governs the most fundamental and important matters related to employment. These matters include working hours, wages, overtime pay, vacation, etc.  

The LSA does not specifically mandate that a written contract be created for most employees. However, it does require however that the following key aspects of the employment relationship be provided in writing by the employer: wage, contractual work hours, holidays, and paid annual leave.  

Working Hours in South Korea

The LSA imposes a maximum of 40-hour work weeks and 8-hour workdays. An employee’s working time may exceed these limits if their recent work time over a longer period not exceeded 40 hours. However, this is subject to restrictions, like obtaining the consent of the employee or their legal representative. The maximum amount of hours an employee is allowed to work weekly in South Korea is 52.  

Generally, employees are allowed to agree to an additional 12 hours per week of overtime. For this overtime pay, the employer will be required to pay an additional 50% of their employee’s ordinary wages. Additionally, for night work (work performed between the hours of 10pm and 6am) employers must also pay an additional 50% of wages.  

Holidays in South Korea

Minimum paid holidays are weekly holidays (usually Sunday) and Labour Day (May 1st). Employees are entitled to an additional 50% pay for 8 hours worked during a holiday, and an additional 100% for any work that surpassed this 8-hour limit.  

Employees that work for a full year are entitled to receive 15 days of annual paid leave per year. Employees that haven’t worked a full year, or have an attendance rate of less that 80%, are entitled to receive one annual paid leave day for every month of the year worked.  

As of January 1st, 2022, employers with 30 or more employees are required to provide their employees with paid time off on public holidays. Public holidays designated by the government are:  

  • New Year’s Day: January 1st. 
  • Lunar New Year’s Day (Seollal): December 31st to January 2nd  
  • Independence Movement Day (Sam Il Jul): March 1st 
  • Children’s Day (Uhrininal): May 5th. 
  • Buddha’s Birthday: April 8th by Lunar calendar. 
  • Memorial Day: June 6th. 
  • Independence Day (Kwang Bok Jul): August 15th. 
  • Harvest Moon Festival (Chuseok): August 14th to August 16th  
  • National Foundation Day (Kae Chun Jul): October 3rd. 
  • Christmas Day: December 25th. 

These days may be subject to change on an annual basis. 

Maternity/Paternity Leave in South Korea

In accordance with the LSA, the minimum maternity leave that can be provided is 90 days, with a minimum of 45 days taken after the birth of the child. In cases where there are multiple births, the employee is entitled to an extra 30 days. Maternity leave is paid leave and is either paid by the employer or subsidized by the government. Additionally, women are protected from termination during pregnancy and up to 30 days following the birth of their child.  

Companies are now also required to provide 10 days of paid paternity leave in South Korea, and are expected to make allowances for unpaid parental leave for both mothers and fathers.  


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No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.