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SALARY PAYMENT IN South Korean Won (KRW, ₩)
CONTRACT LANGUAGES Korean / English
PAYROLL TAX 16.43% – 34.94%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
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In December 2022, South Korea’s National Assembly approved the 2023 Tax Reform Bill. The bill introduced reductions of one percentage point in each of South Korea’s four corporate income tax brackets.
See the 2023 CIT tax rates below:
| Taxable income (KRW) | Tax rate |
|---|---|
| 0 – 200 MM | 9% |
| 200 MM – 20 B | 19% |
| 20 B – 300 B | 21% |
| 300 B+ | 24% |
South Korea has progressive rates of individual income tax. The 2023 Tax Reform Bill increased the personal allowance for employees on low to middle incomes.
| Taxable Income (KRW) | Tax rate 2023 |
|---|---|
| 0 – 14 MM | 6% |
| 14 MM – 50 MM | 15% |
| 50 MM – 88 MM | 24% |
| 88 MM – 150 MM | 35% |
| 150 MM – 300 MM | 38% |
| 300 MM – 500 MM | 40% |
| 500 MM – 1 B | 42% |
| 1 B + | 45% |
Note that foreigners working in South Korea can opt to be taxed at a flat rate of 19% on income earned through employment in South Korea.
Employers make mandatory contributions towards South Korea’s national pension fund; national health insurance fund, and the employment insurance and industrial accident compensation funds. Taxes and mandatory contributions are deducted at source from monthly payroll.
| Contribution item | Contribution rate |
|---|---|
| National Pension Fund | 4.5% (up to KRW 5.53M) |
| National Health Insurance | 3.545% |
| Long Term Care Contribution | 6.405% |
| Employment Insurance | 1.05-1.65% (based on no. of employees) |
| Industrial Accident Compensation Insurance Variable based on industry | Min. 0.76% |
Employees in South Korea make mandatory contributions to the National Pension fund; the National Health Insurance fund; and Employment Insurance.
Employee contributions for 2023:
| Contribution item | Contribution rate |
|---|---|
| National Pension Fund | 4.5% |
| National Health Insurance | 3.545% |
| Long Term Care Contribution | 6.405% |
| Employment Insurance | 0.9% |
Your business can easily hire employees in South Korea without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The National Tax Service is responsible for collecting tax revenues in South Korea. The NTS is overseen by the Ministry of Economy and Finance.
Yes. Employers pay mandatory payroll taxes that go towards South Korea’s national pension fund; national health insurance fund, and the employment insurance and industrial accident compensation funds.
Payroll taxes and mandatory contributions are deducted at source from monthly payroll.
South Korea – 2023 CIT tax rates
