- Overview: South Korea
- Global PEO and payroll
- Global HR Compliance
- 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
If you are considering entering a new market, it’s critical to consider the unique challenges faced in each country. Not every expansion is equally tricky, but navigating global markets will always require rigorous due diligence. As with any expansion, consider the laws, activities of your company, goals, and risk tolerance levels before moving forward. There you go! It’s been great fun putting this together for my readers – hopefully, it’s provided some value!
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 (Republic of Korea), without having to establish a legal business entity.
What is a Global PEO?
Are you looking for a hassle-free way to manage your company’s global employment needs? Look no further than a global PEO. A global PEO (Professional Employer Organization) can offer comprehensive global employment solutions in 190 countries.
Our flexible approach means that we can scale up or down according to your business needs, and we minimize risk by protecting your company’s IP and employees. Delegate global employment responsibilities to us and focus on running your business!
Our Global PEO amd payrpll services include payroll and benefits administration, background checks, immigration support, and more. Quick and easy market entry is guaranteed with PEO – we are your local legal entity, so there is no need to incorporate. Plus, our compliance with all local laws and regulations ensures that you can operate securely and confidently.
Why Partnering with Global PEO Is a Win-Win Solution For Businesses
Employers face the dual challenge of finding and retaining talent in a competitive business environment. One way to counter this is to invest in an experienced third party to share the burden of non-core administrative activities, freeing up precious time and resources to focus on the organization’s core competency.
A Professional Employer Organization (PEO) is a specialized staffing firm that provides human capital management services, including administration, payroll, tax compliance, workers’ compensation, employee benefits, and HR consulting services for its clients. These ancillary services allow organizations to constrain their investment in human capital management to a fixed fee per employee per year.
Global PEOs shoulder the burden of many “non-core” HR and administrative activities – from payroll to benefits administration – enabling PEO clients to focus more on their organization’s core competency. Further, PEOs that are more sophisticated provide expertise to help their clients with strategic HR decisions.
Ready to get started? Request a quote!
Global Employment Risks, Tax Considerations, and Liabilities
Global employment compliance is a complex and ever-changing field. The risks and liabilities associated with your employees include:
- tax considerations
- Intellectual Property rights
- employee privacy and data protection
- liability for employee misconduct
- compliance with local employment labor laws and regulations
- employee training and development
- employee compensation and benefits
- hiring and termination practices and procedures
- compliance with labor laws and regulations in the host country and abroad
- securing and extending business visas, work permits, etc.
When setting up an international operation, it is important to consult legal counsel or a Global Professional Employment Organization with experience dealing with these issues so that you do not run afoul of the law by inadvertently violating any employment regulation.
Compliance with the labor laws and tax regulations can be complex because they are often inconsistent from country to country, state to state, or even city requirements. As a result of these inconsistencies, employers must ensure that their global human resource and payroll policies are consistent with local laws wherever their employees or independent contractors work.
10 Benefits Of Working With a Global PEO (Professional Employer Organization)
- Global employment management centralization. Maximized control. Minimized risk
- A Global PEO facilitates quick talent deployment and provides access to various employee benefits solutions to attract and retain your global talent
- Eliminating and mitigating certain employment-related risks, including non-compliance and employee misclassification, through the shared responsibility and co-employment arrangementp
- A global PEO can facilitate risk-free, quick, and easy market entry acting as your local legal entity, helping you to avoid the cost and time associated with incorporating in 190 countries
- Reduced and stable global employment management-related cost
- A global PEO allows you to make your global expansion 100% compliant and secure by keeping track and adhering to all local laws and regulations
- Scalable technology and infrastructure provided via the global PEO relationship
- A global PEO and payroll provider helps you remain agile and scales up or down in your selected foreign markets according to your business needs
- A global PEO facilitates global employment consistency and HR compliance
- Global PEOs act as outsourced HR and legal department allowing business owners to focus on running their businesses instead of handling HR tasks
A Global PEO & Payroll Solution Provider Can Help You Replace Numerous Vendors
When it comes to managing the employment side of your business, there are many options available to get the help you need. an ever-growing number of vendors can assist you with various aspects of your human resource services, including payroll, employee benefits, and more.
Working with a professional employer organization (PEO) is a great way to get all the help you need in one place. PEOs can manage all of your employment-related needs, from taxes and retirement plans to background checks and employee discounts.
Partnering with a PEO andpayroll provider saves you time and hassle by consolidating all of your HR needs into one relationship. This also gives you peace of mind knowing that experts are handling everything for you so that you can focus on running your business.
Ready to get started? Request a quote!
15 Burdens a Global PEO Can Relieve for Your In-House HR Department
- Global expansion complexity
- Global payroll administration
- Employee benefits administration
- Drafting compliant employment contracts to adhere to local labor and tax regulations in 190 countries
- Lengthy onboarding
- Complex and risky offboarding
- Background checks
- Workforce compensation administration
- Guidance on best practices of voluntary benefits provisioning
- Immigration and relocation support for your ex-pat workforce, such as visa sponsorship and securing work permits
- IP right protection
- Lack of local and international legal support
- Convert local contractors into full-time employees
- Business transitions: acquisitions, mergers, close downs
- Need to deal with multiple global employment service providers
How to Choose a Global PEO (Professional Employer Organization) in South Korea
The number of business people thinking globally is on the rise. With the help of a global professional employer organization (PEO), it’s easier to expand your reach and your client base by hiring employees overseas. To streamline your global HR operations, a global PEO can help you navigate local employment laws, find qualified candidates, and handle payroll and benefits administration.
A global PEO and payroll soluyions can support your workforce in many ways. They can employ talent, manage compliance issues, provide strategic advice about international expansion, and help you design a plan for growth in other countries.
As you consider partnering with a global PEO, remember that the needs of each business are unique. Just as you would carefully select international employees, you need to find a PEO that can address your industry’s specific challenges. Look for a global PEO with a strong track record and fiscal stability that can provide comprehensive support and labor and compliance expertise. Make sure they offer services and coverage in all your business areas. Get references from other clients in your industry to ensure you make the best choice for your business.
Acumen International – Your Single Point of Truth and Global Employment PEO and Payroll Solution Provider in South Korea
- 100 % compliant, quick, easy market entry. Acumen Global PEO is your local legal entity, helping you reduce the cost and time associated with incorporating.
- Immediate global employment service coverage in 190 countries
- Both a single point of contact and a dedicated account manager for your project for all target countries.
- Compliant and secure global employment operations. We help you adhere to all local laws and regulations in 190 countries
- A single contract for all in-country services (employment, immigration, legal, etc.)
- A single PEO provider assumes full responsibility for your international employees in multiple countries
- Payments are made within the UK or to the UK bank company account
- Fully compliant with standardized procedures and reporting systems
- You can delegate to Acumen Global PEO all HR responsibilities Payroll & benefits administration, background checks, and HR helpdesk
- Standard payroll breakdowns for all target countries
- As soon as we receive your request for a project in any country, we will send you a payroll breakdown and offer within 2 working hours
- Full 100% fee money-back guarantee for the employee or contractor payment delays.
- Tailored and 100% compliant employment contract drafts
- With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions
- Acumen Global PEO protects your company’s Intellectual Property rights
With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
|Our Global PEO&Payroll||Client|
|Employment risks mitigation|
|Tax compliance & payroll processing|
|Incorporation costs||no need for own
|Coverage||190 countries||190 countries|
Ready to get started? Request a quote!
Global Payroll Calculator: Accurate Global Employment Cost Estimation
When hiring employees and contractors across the globe, you may not be choosing the most cost-effective and business-friendly country.
- Do you know which country is the most cost-effective place to hire employees?
- What are the costs of entity establishment and legal representation?
- What are the payroll costs and management fees?
- What are your ongoing annual tax compliance costs?
- Are you fully aware of banking implications?
- Did you know that labor laws and hidden costs could make your company less efficient when choosing a country to run your business?
- Did you know that there could be a more cost-effective country to hire employees in and save up to 50%?
This is because countries have different labor laws, compliance, and tax regulations. What if, instead of limiting your company’s international expansion by cutting through the jungle of local regulatory compliance, tax, labor, and immigration requirements, you could have all the information of 190 countries at your fingertips?
Acumen International offers the Global Payroll Calculator to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.
Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.
International Global Payroll and Taxation in South Korea (Republic of 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 South Korea (Republic of Korea)
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 South Korea (Republic of Korea)
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.
Global Employment Solutions: How to Put Together a Hard Puzzle
There are many things that can go wrong when you try to find employment overseas. Acumen International can help you navigate these challenges, but it is important to be aware of the potential obstacles you may face.
As a Global PEO, our role is to enable organizations to quickly and easily hire employees in any country. We take care of all the employment-related details so that our clients can focus on their business goals. However, if candidates are unhappy at any stage, the whole arrangement can fail.
When making the decision to move abroad for work, your selected candidates consider a number of factors. The visa and work permit process complexities, currency fluctuations, lifestyle choices and family considerations can all impact their final decision.
As a PEO, we understand that when expanding your business globally, it’s vital to put your employees’ needs first. Considering the impact that this move will have on their lives, it’s important to think outside the box and make sure they are comfortable and supported every step of the way.
“It has become critical for organizations to have an understanding of applicable laws and regulations concerning issues such as minimum wages and benefits, employment standards, immigration and labor relations in each location. A Global PEO can play an important role in helping organizations navigate this complex global employment landscape through offering reliable and country-specific solutions and expert advice on matters related to compliance,” says Nick Ganzha, CEO and founder at Acumen International.
Acumen Global PEO can help you solve the hard puzzle of global employment. As a Global PEO partner, we help businesses meet all of their HR needs while also handling compliance issues that are specific to the international arena. By offering comprehensive global employment solutions and reality checks about the compliance aspects of employing staff across the globe, we can be an important resource for your in-house HR and Management teams.
Global Employment Services: How a Global PEO can Help You in Business Transition
Acumen International PEO offers a unique blend of experience and service suite, providing global employment opportunities that are genuinely global-ready. If your company is working in transition, such as going through an acquisition or merger, or if you are experiencing a company liquidation, Acumen International can find a legal and compliant solution to hire your employees—anywhere in the world! Many companies struggle with handling the employees being left behind during these times of transition. It’s common for employees to feel insecure about their future employment prospects, particularly when they have been forced out of their positions.
This can also be problematic for companies, who will likely have open positions that need filling but still have lingering contracts to fulfill. In both cases, having a resource like Acumen International PEO and payroll solution can ensure that the company’s business continues without being negatively affected by the change. When you’re working with Acumen International, we take care of all the paperwork and legal obligations so that you can focus on completing your transition plans. We also handle everything from payroll, benefits, and even full payroll tax administration for all our employees worldwide. This gives employers peace of mind that all of their global obligations are fulfilled while allowing them to focus on their transition plans.
A reduction in the workplace can be a scary time for employees. Global PEO can provide outplacement services to help reduce the risk and ensure downsized employees have some assistance while searching for a new employer.
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.