InvestKorea | What Investors Need to Know | Operational Issues

Labor

Labor relations acts and subordinate statutes have been enacted based on the Constitution of the Republic of Korea and businesses or workplaces employing foreigners are regulated by them. Labor conditions shall be decided based on the free will of employees, with employers and employees equal footing, and conditions should at least fulfill the basic requirements stipulated in the Act.

Labor law categories and application

Individual employment-related laws

Collective labor relations laws

Trade Union & Labor Relations Adjustment Act

Cooperative labor relations laws

Act on the Promotion of Workers’ Participation and Cooperation

Employment-related laws

Labor management

Wages

The minimum wage for 2018: KRW 7,530 per hour, KRW 60,240 per day (8 hour workday)

Working hours

Working Hours
Workers	Standard working hours		Extended work	Nighttime work	Holiday work
Workers	1 day	1 week	Extended work	Nighttime work	Holiday work
Male workers	8 hours	40 hours	12 hours per week	《In principle》 As agreed by the involved parties	《In principle》 As agreed by the involved parties
Female workers	8 hours	40 hours	12 hours per week	《In principle》 As agreed by the persons concerned	《In principle》 As agreed by the persons concerned
Female workers less than one year after childbirth	8 hours	40 hours	As agreed between the parties concerned; 2 hours per day, 6 hours per week, 150 hours per year	《In principle》 Not applicable 《Exception》 As agreed by the persons concerned and approved by the Minister of Employment and Labor	《In principle》 Not applicable 《Exception》 As agreed by the persons concerned and approved by the Minister of Employment and Labor
Pregnant workers	8 hours	40 hours	Not applicable	《In principle》 Not applicable 《Exception》 Upon an explicit request approved by the Minister of Employment and Labor	《In principle》 Not applicable 《Exception》 Upon an explicit request approved by the Minister of Employment and Labor
Minors (under the age of 18)	7 hours	35 hours	As agreed between the parties concerned; 1 hour per day, 5 hours per week	《In principle》 Not applicable 《Exception》 As agreed by the persons concerned and approved by the Minister of Employment and Labor	《In principle》 Not applicable 《Exception》 As agreed by the persons concerned and approved by the Minister of Employment and Labor
Workers in hazardous conditions (high pressure environment)	6 hours	34 hours	Not applicable	-	-

Holidays and leaves

“Legal” holidays and leaves

Public holidays
Company foundation
anniversaries
Summer leave
Congratulatory &
condolence leave

“Agreed” holidays and leaves

Weekly holidays
Labor Day
Monthly leave
Annual leave
Menstruation leave
Maternity leave

Dismissal

An employer cannot dismiss, lay off, suspend or transfer a worker, reduce a worker’s wages, or take punitive measures against a worker without justifiable cause. Such punitive measures shall be taken on reasonable grounds that are generally accepted by society at large. In general, the reasons for punitive measures such as dismissal are stipulated in the employment regulations or the collective agreement, and the procedures set forth in the concerned employment regulations or collective agreement shall be followed. When dismissing a worker, the worker shall receive notice of the dismissal at least 30 days prior to actual dismissal. If not, the employer shall be obligated to pay at least 30 days’ worth of advance notice of dismissal pay. Dismissal of an employee is effective only when a written notice stating the cause and date of dismissal is sent to the employee concerned.

Retirement benefits

Retirement allowance system

The employer should pay the average wage for
30 days or more per year of continuous
service period.

Retirement pension plan

The employer shall accumulate and invest
funds for the retirement allowance into an
external financial institution during the
workers’ service period.