Korean labor laws your rights as a foreign employee 2026

Navigating the workplace in a foreign country can be daunting, but understanding your legal footing is the first step toward a successful professional life in South Korea. As the expat community continues to grow—surpassing 2.5 million residents in late 2025—the South Korean government has rigorously updated the Labor Standards Act (LSA) to ensure fair treatment for all workers, regardless of nationality.

For more details, check out our guide on Buying property in Korea foreign ownership rules guide.

You might also enjoy our article about Kiosk survival guide.

Learn more in our comprehensive guide to How to register your foreign address change online and of....

You might also enjoy our article about Pregnancy and childbirth in Korea a guide for foreign mot....

Whether you are an English teacher on an E-2 visa, a tech professional on an E-7, or a resident on an F-series visa, the law applies to you equally. In 2026, the landscape of Korean labor law emphasizes strict adherence to working hours, clear severance mandates, and protection against workplace harassment. Ignorance of the law is not a valid defense for employers, nor should it be a vulnerability for employees.

The Foundation: Your Employment Contract

The cornerstone of your rights in Korea is the employment contract. Under the LSA, an employer is legally required to provide a written contract that clearly states the terms of employment. This is not optional. If your employer refuses to provide a written contract, they are subject to fines of up to ₩5,000,000 (approximately $3,800 USD).

A standard contract must include wages, working hours, holidays, paid leave, and grievance procedures. It is critical to note that any clause in your contract that violates the Labor Standards Act is null and void, even if you signed it. For example, if your contract states you agree to receive no severance pay, that clause is illegal and unenforceable.

The 5-Employee Rule

One of the most critical distinctions in Korean labor law is the size of the workplace. Many protections under the LSA, such as the requirement for extra pay for overtime, night work, and holiday work, strictly apply to businesses with five or more full-time employees. If you work for a small startup or a tiny hagwon (academy) with fewer than five registered employees, some of these protections may not apply to you, though minimum wage and severance pay requirements remain universal.

2026 Minimum Wage and Salary Standards

As of January 1, 2026, the Minimum Wage Commission has set the hourly minimum wage at ₩10,750. This represents a steady increase designed to keep pace with the cost of living in major hubs like Seoul and Busan.

For a standard full-time employee working 40 hours per week (plus the mandatory weekly paid holiday allowance known as Juhyu allowance), the minimum monthly salary is approximately ₩2,246,750. This calculation is based on the standard 209 working hours per month metric used universally in Korean payroll accounting.

Understanding Overtime Pay

If your workplace has five or more employees, any work performed beyond 8 hours a day or 40 hours a week must be compensated at 150% of your ordinary hourly wage. This also applies to work performed between 10:00 PM and 6:00 AM (Night Work).

For example, if your hourly rate is ₩20,000:

• Standard Hour: ₩20,000
• Overtime Hour: ₩30,000
• Night Work Hour: ₩30,000
• Holiday Work (8 hours or less): ₩30,000

Working Hours and The 52-Hour Week

South Korea has moved aggressively to shed its reputation for excessive working hours. The "52-Hour Work Week" rule is now firmly established. This limits employees to a maximum of 40 regular hours and 12 hours of overtime per week.

Violating this cap can result in severe penalties for business owners, including up to two years in prison or fines up to ₩20 million ($15,200 USD).

Break Times

You are legally entitled to break times during your shift. The law mandates:

• 4 hours of work = 30 minutes break minimum.
• 8 hours of work = 1 hour break minimum.

These breaks must be free time where the employee can leave the premises or rest freely. If you are required to answer phones or stay at your desk "just in case" during lunch, that is considered work time and must be paid.

Annual Leave and Public Holidays

The concept of "Red Days" (public holidays) has evolved. As of 2026, all companies with 5 or more employees must grant public holidays as paid days off. This includes Lunar New Year (Seollal), Chuseok, and Hangeul Day.

Annual Paid Leave (Yeoncha)

New employees (less than 1 year of service) accrue 1 paid leave day for every month of full attendance, up to a maximum of 11 days in the first year.

Once you have completed 80% attendance over a full year, you are granted 15 days of paid leave for the second year. This increases by 1 day every two years of service thereafter, capped at 25 days.

Severance Pay (Toechik-geum)

Perhaps the most significant financial benefit for foreign employees is the severance pay system. If you work for one continuous year or more, you are entitled to severance pay, regardless of visa type or workplace size.

The formula roughly equates to one month's average salary for every year worked. The "Average Wage" is calculated based on the total wages paid in the three months preceding your departure.

The Calculation Logic

The specific formula is: (Average Daily Wage × 30 days) × (Total Days Employed ÷ 365)

For an employee earning ₩3,000,000 monthly who worked for exactly 2 years: 3,000,000 × 2 = ₩6,000,000 (approx $4,560 USD).

Important Note: Severance must be paid within 14 days of your last working day. Failure to pay results in 20% annual interest on the delayed amount and potential criminal charges for the employer.

Dismissal and Resignation

Job security is relatively high in Korea due to strict dismissal laws. An employer cannot fire a worker without "justifiable cause." This is a high bar, usually requiring proof of criminal activity, long-term unexcused absence, or severe financial damage to the company.

Notice of Dismissal

If an employer wishes to dismiss you (even for cause, in many cases), they must provide at least 30 days' advance notice. If they fire you immediately, they must pay 30 days' worth of ordinary wages in lieu of notice.

This creates a safety buffer of roughly 2.5 million to ₩3 million for most expats to organize their affairs or find new employment.

Unfair Dismissal

If you feel you were fired unfairly (e.g., without written notice, or for arbitrary reasons), you can file a petition with the Labor Relations Commission. This must be done within 3 months of the dismissal. The remedy is usually reinstatement and back pay for the period you were out of work.

Four Major Insurances

All employees working more than 60 hours a month must be enrolled in the Four Major Insurances. The premiums are generally split 50/50 between employer and employee, except for Worker's Compensation which is 100% employer-paid.

Pension Refund: Many expats (Americans, Canadians, Australians, etc.) are eligible for a lump-sum refund of their pension contributions upon permanently leaving Korea. This can amount to millions of won. You can apply for this at the National Pension Service (NPS) office located near Incheon Airport before you fly out.

Workplace Harassment

South Korea strictly prohibits "Gapjil" (abuse of power) and workplace harassment. The LSA defines harassment as causing physical or mental suffering or worsening the working environment by taking advantage of one's status.

If you report harassment, the employer is legally obligated to investigate objectively. Retaliation against a whistleblower is a serious crime, punishable by up to 3 years in prison or a fine of ₩30 million.

Visa-Specific Considerations

E-2 (Language Instructor)

E-2 visa holders are often vulnerable because their housing is tied to their employment. If you are fired, you generally lose your housing immediately. However, the law grants you reasonable time to vacate. Additionally, if you win a claim for unfair dismissal, you can apply for a D-10 (Job Seeking) visa to stay in Korea while you look for a new employer.

E-7 (Special Activity)

E-7 holders often have higher salaries and more complex contracts. Ensure your specific job code matches your actual duties. Working outside your designated activities is a violation of the Immigration Control Act, separate from Labor Law, and can lead to fines starting at ₩2 million.

Resources and Support Centers

If you find yourself in a dispute, do not try to handle it alone. The language barrier is significant in legal proceedings.

Ministry of Employment and Labor (MOEL)

• Call Center: 1350 (Press 5 for English)
• Operating Hours: 9:00 AM – 6:00 PM
• Website: moel.go.kr/english

Seoul Global Center Offers free legal counseling for foreign residents.

• Location: 38 Jong-ro, Jongno-gu, Seoul
• Nearest Station: Jonggak Station (Line 1), Exit 6
• Distance: 2-minute walk from station

Conclusion

Working in South Korea offers incredible opportunities for growth and cultural immersion. However, the work culture is fast-paced and can be demanding. By arming yourself with knowledge of the 2026 Labor Standards Act, you protect not only your financial interests but your mental well-being.

Remember, the law is designed to protect you, regardless of your Korean language ability. Keep records, communicate clearly, and never hesitate to seek professional help if your rights are infringed.