- Overview: South Korea
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in South Korea
Getting your business up-and-running in South Korea can be challenging, especially if you do not speak the native language. Establishing your own business entity in South Korea is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in South Korea, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in South Korea, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in South Korea
Navigating the South Korean legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native South Korean speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in South Korea without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in South Korea. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in South Korea
Employment related taxes
Personal Income tax (PIT). The following graduated income tax rates are applied separately to taxable composite income and retirement income to calculate the tax amount from each source of income.
Residence (Local & Expat). In addition, resident tax is assessed. Tax rate for non-residents is the same as that for residents.
Payroll Cycle in Country
Wages shall be paid at least once per month on a fixed day; however, this shall not apply to extraordinary wages, allowances, or any other similar payment or those wages provided for by the Presidential Decree.
Non-payroll taxes in Country
VAT is levied on the supply of goods and services, except zero-rated VAT on certain supply of goods and services (e.g. goods for exportation, certain eligible services rendered to non-residents earning foreign currency, international transportation service by ships and aircraft) and exemption on certain goods and services (e.g. basic life necessities and services, such as unprocessed foodstuffs and agricultural products; medical and health services; finance and insurance services; duty-exempt goods).
Electronic VAT invoicing is a compulsory requirement. If a taxpayer fails to issue the electronic VAT invoice or report electronically to tax authorities, the relevant penalties shall be imposed.
If a foreign company or a non-resident provides certain electronic services to a consumer (excluding the person having Korean VAT registration) in Korea via an information and communication network (as defined under relevant Korean act), it shall comply with the requirements of a simplified VAT registration and VAT return filing, together with VAT payment for the provision of the electronic services. The electronic services of a foreign company or non-resident includes games, audio/video files, electronic documents, etc. that are supplied in an electronic format through an information and communication network, as well as cloud computing, advertising placement services, and intermediary services as prescribed in the Presidential Decree of the VAT Law.
Ready to get started? Request a quote!
How Acumen’s International PEO and Payroll Service can Benefit Your Business in South Korea
Compensating your local and expat workforce in South Korea and closely adhering to South Korean taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with South Korean labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in South Korea by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by South Korean laws. To get the latest updates on taxation in South Korea and in 190 countries worldwide, contact Acumen’s team of global employment experts.