You can hire tech talent in South Korea even without setting up a local entity. Many international companies face challenges when hiring in South Korea, from legal complexities to understanding local labor laws. Whether you want to test the market, bring on a local expert, or build a small remote team, there are compliant ways to hire tech employees in South Korea without establishing a physical business presence.
At SVA Recruitment, a leading IT and tech recruitment agency in Asia, we help global companies hire tech talent in South Korea efficiently and stay fully compliant with labor regulations. This guide explores the main methods of hiring in South Korea, their benefits, and what employers need to know before starting.
Why Companies Hire Tech Talent in South Korea
South Korea is one of Asia’s most technologically advanced markets, home to highly skilled professionals in software development, IT infrastructure, electronics, and AI. Many foreign companies choose to hire tech talent in South Korea to access exceptional tech talent and explore business opportunities before establishing a full entity.
Benefits of hiring tech talent in South Korea without a local entity:
Access to world-class tech and engineering professionals
Flexibility to test the market before long-term expansion
Cost-effective, compliant hiring options
Learn more about Korea’s labor system through the Ministry of Employment and Labor, which provides detailed information on employment regulations in South Korea.
Option 1: Set Up a Local Company in South Korea
The traditional way to hire tech employees in South Korea is by establishing a local legal entity, such as a Yuhan Hoesa (limited company) or branch office. This allows direct employment and full control over operations.
Advantages:
Direct employer-employee relationship
Full operational control
Improved reputation with local clients and partners
Considerations:
Incorporation may take several months
Costs for compliance and benefits can be significant
Less suitable for small-scale or trial hiring
If you plan to hire in South Korea for long-term growth, setting up a local entity is a solid investment. For guidance, visit Invest Korea, the official government agency supporting foreign businesses. SVA Recruitment can also connect you with company setup and HR compliance specialists in Korea.
Option 2: Hire Tech Professionals in South Korea as Consultants
A faster alternative is to engage professionals as independent consultants in South Korea. They invoice your company directly, removing the need for a registered local business.
Advantages:
Quick and cost-effective
No employee benefits or payroll requirements
Ideal for short-term projects or market testing
Considerations:
Less control over deliverables
Risk of misclassification if the work resembles full employment
Contractors manage their own taxes and benefits
This is ideal if you want to hire tech talent in South Korea for short-term, project-based work. SVA Recruitment can connect you with experienced IT consultants ready to support your operations in Korea.
Option 3: Use an Employer of Record (EOR)
An Employer of Record (EOR) makes it possible to hire tech talent in South Korea without registering a company. The EOR becomes the legal employer, handling payroll, tax, and compliance — while you manage the employee’s day-to-day activities.
Advantages:
Quick and compliant onboarding
Adheres to Korean employment laws
Scalable solution for market entry and expansion
Considerations:
EOR service fees apply
Less direct control compared to having a local entity
This is one of the easiest ways to hire tech talent employees in South Korea while staying compliant. For incentives and market-entry information, visit KOTRA (Korea Trade-Investment Promotion Agency). SVA Recruitment also partners with reliable EOR providers in Korea for smooth onboarding.
Hiring Options Comparison Table
Here’s a side-by-side comparison of the main ways to hire in South Korea, showing how each option fits different business goals.
| Factor | Local Entity | Employer of Record (EOR) | Contractor / Consultant |
|---|---|---|---|
| Description | You register a company in South Korea (subsidiary or branch) and directly hire employees. | A third-party EOR legally employs your workers while you manage them day-to-day. | You engage an independent professional or freelancer under a service contract. |
| Setup Time | 3–6 months | 1–2 weeks | 1–5 days |
| Compliance Risk | Fully compliant if company meets legal requirements | Fully compliant under EOR’s local entity | Risk of misclassification if contractor works like an employee |
| Administrative Burden | High – need to handle payroll, taxes, and HR compliance | Low – EOR handles payroll, benefits, tax filings | Low – contractor manages their own taxes and benefits |
| Cost (Approx.) | USD 8,000–10,000 setup + monthly payroll + 20–25% employer contributions | Salary + 10–15% EOR service fee | Hourly/daily contract fee (no statutory benefits) |
| Control Over Employee | Full | Moderate (shared with EOR) | Low to moderate (depends on contract terms) |
| Scalability | Ideal for long-term or large teams | Best for testing market or small teams | Suitable for short-term or project-based work |
| Legal Employer | Your company in Korea | The EOR company | The contractor (self-employed) |
| Tax & Payroll Responsibility | Direct responsibility | EOR handles all filings | Contractor pays own taxes |
| Employment Benefits | Required (pension, insurance, leave, etc.) | Required (handled by EOR) | Not required (depends on contract) |
| Termination Rules | Must follow Korean Labor Standards Act | Managed by EOR with your consent | Governed by contract terms only |
| Time to Start Operations | Slow | Fast | Immediate |
| Ideal For | Companies planning long-term expansion or hiring >5 staff | Companies testing market entry or hiring 1–5 employees | Short-term projects, consultants, or freelancers |
| Example Use Case | Setting up R&D center or local branch | Hiring a local sales or technical rep before entity setup | Engaging a developer or marketing expert for 6-month project |
Example Cost Comparison (Software Engineer in Seoul)
| Option | Monthly Gross Salary | Employer Cost / Fees | Total Monthly Cost (Approx.) | Time to Hire |
|---|---|---|---|---|
| Local Entity | KRW 5,000,000 | KRW 1,100,000 (22% employer contribution) | KRW 6,100,000 | 3–6 months |
| EOR | KRW 5,000,000 | KRW 750,000 (EOR fee ~15%) | KRW 5,750,000 | 1–2 weeks |
| Contractor | KRW 5,500,000 (service fee, self-managed) | – | KRW 5,500,000 | 1–5 days |
Employment Regulations When Hiring Tech Talent in South Korea
Employment Contracts
Must be in writing and include job title, pay, working hours, benefits, and termination clauses.
Probation and termination must comply with Korea’s Labor Standards Act.
Working Hours
40 hours per week, 8 hours per day
Overtime up to 12 hours weekly, paid at 150%
Mandatory Benefits
Employers must contribute to Korea’s Four Major Insurances:
National Pension
National Health Insurance
Employment Insurance
Industrial Accident Compensation Insurance
Employer contributions usually total 20–25% of the employee’s gross salary.
Leave Entitlements
Annual leave: At least 15 days after one year
Public holidays: 15+ days annually
Maternity leave: 90 days (60 days employer-paid)
Paternity leave: Up to 10 days
Sick leave: Unpaid unless company policy covers it
Regional Differences When Hiring Tech in South Korea
Seoul: Strongest tech talent, but higher costs
Busan: Affordable option for operations and support roles
Daejeon: Known for research and development talent
Compliance Risks: Contractors vs. Employees
Misclassifying workers as contractors when they function as employees can lead to fines and back payments. Companies that hire in South Korea without a local entity should use an EOR to ensure compliance and minimize risk.
Conclusion
Hiring in South Korea is possible even without a registered business. Depending on your goals:
Set up a company for long-term operations.
Hire consultants for short-term or niche work.
Use an EOR for fast and compliant market entry.
SVA Recruitment helps international companies hire tech talent in South Korea quickly and compliantly, connecting them with top Korean tech talent and trusted HR partners for smooth expansion.
