Hiring in Korea for Your Business
Ranked 10 in terms of GDP, South Korea boasts a myriad of reasons why Korea should be on the list of countries to hire from and set up a business in.
Korea is one of the front runners in the technology sector such as chip manufacturing and gadget makings like phones and televisions. More than their booming economic sector Korea is a great country to set up a business due to their significant geological position for trades in different countries. The location of South Korea is between Japan and China, which can lead to further growth of your business in those countries to get a grasp on the Asian market.
In setting up a business in the country, knowing employee benefits is vital to abide by the regulations. Written below are the various rights your employees must have.
In South Korea, they have the standard working hours of about eight hours per day. Overtime payment is a must and given whenever they are still doing their obligations outside of work hours. However, employees can only avail of overtime compensation for 12 hours a week maximum.
In terms of minimum wage, the hourly rate is 9,160 won, or $7.7. Some holidays in South Korea are mandatorily paid, such as Labour Day, which is on May 1, and Weekly holidays. On the other hand, public holidays entitle workers to paid time off.
Payment by the employers is mandatory for injuries incurred from work-related matters. Sick pay is also required to be given by employees via insurance. However, in cases where your workers have experienced any illness outside the work time or place, they must be given enough time off to recover.
Your company must give employment insurance to your employees. Workers are entitled to the benefit when terminated. If you have any permanent employees, they must have employment insurance.
Furthermore, an increase of contribution from the employer must commence according to the worker’s salary, ranging between 0.6 – 0.34%.
There are various types of insurance, so choosing appropriate health insurance is vital to the satisfaction of your employees and the budget allocation of your company.
However, generally, health insurances are equivalent to about 2.995% to 3.43% of the monthly wage of your workers. Additionally, your workers must also pay the same percentage for their insurance.
Employees are entitled to a pension or severance compensation when they have worked for your business for one year.
The calculation of their financial compensation is their average wage. The average computation is 30 days of their salary.
Your employees must give a notice of 30 days before leaving the company. However, this is not the cause if they have done a grave offense, been in the company for only a short time (less than three months), and if the business is impossible to maintain.
With hiring from a different country, it is critical to get a gist of what their nation is like, beliefs, traditions, norms, and the like.
Firstly, the influence of Confucianism in Korean culture. With this effect, the mindset of connections and relationships with other individuals is significant for Koreans. There is a hierarchy within the culture, and everyone has a part to fill. In terms of businesses, it can equate to individuals giving immense respect to their superiors.
However, this may not be the case for all businesses as the country becomes more Westernized and workers prefer to listen to people of their age and not their seniors.
Hiring in Korea has different regulations and benefits for employees to have. They must be followed to avoid fines and penalties for your company. Moreover, the general gist of their culture reflects who they are as a society.
Finally, as one of the leading countries in the world, setting up in South Korea can be incredibly beneficial for your business.
Global People is a leading local employment solutions provider for national and international corporations and can advise and escort you in your next destination.
