Working in Korea: The No-Nonsense Guide to Employment Contracts
So, you did it. You aced the interview, you survived the visa process, and now a shiny PDF document has landed in your inbox. It’s your Korean Employment Contract.
Your hand is hovering over the pen (or the digital signature button). You are ready to start your new life in Seoul, eating Kimchi stew and living your best life.
Stop. Put the pen down.
Signing a contract in a foreign country is terrifying. Is that clause standard? Are they trying to scam you? Why does it say I have to work on Saturdays?
Korea has very specific labor laws that are quite different from the US or UK. To save you from a year of misery, here is the survival guide to understanding your Korean work contract—the good, the bad, and the illegal.
1. The “Bilingual” Trap First rule of fight club: The Korean version wins.
Most contracts for foreigners will have English on one side and Korean on the other. It looks helpful. But in a court of law, only the Korean text matters.
Red Flag: If the English side says “15 vacation days” but the Korean side says “10,” you are getting 10.
Pro Tip: Don’t trust the translation blindly. Run the Korean text through Papago (the superior translation app in Korea) or ask a Korean friend to double-check the tricky clauses.
2. The Holy Grail: Severance Pay (Toejikgeum)
This is the best part of working in Korea. Under Korean Labor Law, if you work for one full year, you are entitled to one extra month of salary as a bonus when you leave. This is called Toejikgeum.
Red Flag: Some shady employers try to “bake” this into your monthly salary to make the pay look higher. (e.g., “We pay 2.4 million won, which includes severance”). This is illegal. Severance must be paid after the contract ends, in a lump sum. Do not let them trick you out of this golden parachute.
3. The “4 Major Insurances” (Don’t Opt Out)
Legally, your employer must enroll you in the “4 Major Insurances”: Pension, Health, Employment, and Accident Insurance.
The Cost: You pay 50%, and your boss pays 50%. It comes out of your paycheck automatically.
The Pension Perk: If you are from the US, Canada, or Australia (and other select countries), you can get your entire pension contribution back as a lump sum when you leave Korea. It’s basically a forced savings account that buys you a flight home (and then some). If your boss suggests “paying you cash under the table” to skip this, say no. You are losing money.
4. Vacation Days vs. Sick Days (The Culture Shock)
In the West, we have “Sick Days.” In Korea, getting sick is… complicated. Many contracts do not offer separate sick leave. If you have a flu and stay home, it often gets deducted from your vacation days.
The Law: Standard law grants roughly 11-15 days of annual leave for the first year.
The Reality: Korean work culture can be guilty about taking holidays. But remember, those days are yours by law. Don’t let a boss bully you into “banking them” forever.
5. The “Inclusive Wage” System (Overtime Trap)
Does your contract say “9 AM to 6 PM”? Great. Does it also have a tiny clause about “Inclusive Wage System” (Pogwal-imgeum-je)? This is a common tactic where the company claims that a certain amount of overtime is “already included” in your base salary. This means they can make you work until 8 PM without paying you a single extra won.
Advice: Clarify the overtime rules before you sign. Ask directly: “What is the compensation for work done after 6 PM?”
6. Termination: You Can’t Just Be Fired
Korea is not an “at-will” employment country like the US. Your boss cannot walk in and say, “I don’t like your face, you’re fired.” To fire you, they need a valid, documented reason, and they generally must give you 30 days’ notice or 30 days’ salary in lieu of notice. If you are fired unfairly, there is a government body called the Labor Board that actually has teeth and can help foreigners.
Final Thoughts
Most Korean employers are honest and follow the rules. But there are always bad apples. A contract isn’t just a piece of paper; it’s the script for your next year of life. Read it twice, negotiate the weird parts, and protect your peace!