South Korea Highlights:
- 1WB’s branch ensures full compliance with country’s regulations.
- The whole deployment process for foreigners takes about 3 weeks whereas for locals within 1 week.
- Employee should enter the country with Work Permit.
- Handling payroll processing, immigration and taxes compliantly, swiftly and cost efficient.
- Individual income tax is deducted at source, taking into account the following band rates:
Taxable Income (Korean WON) | Tax Rate % - not including local surtax |
---|---|
0 – KRW 12m | 6% |
Over KRW 12m – KRW 46m | 15% |
Over KRW 46m – KRW 88m | 24% |
Over KRW 88m – KRW 150m | 35% |
Over KRW 150m – KRW 300m | 38% |
Over KRW 300m – KRW 500m | 40% |
> KRW 500m | 42% |
- Corporation tax rate is progressive from 10% to 25% (11% to 27.5% including local tax).
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Social security contributions - Employers and employees must make social security contributions (i.e. national pension, medical insurance, unemployment insurance and industrial injury compensation insurance) to the relevant social security authorities.
The social security contribution rates vary depending upon number of employees and the industry.
Expats can avoid paying national pension if they provide proof that pension is paid in the country of origin.
- Work permit - 1WB can provide D7 visa (intra-company transferee) – employees of 1WB assigning to ROK branch. 1WB can sponsor work permits for foreign employees and the processing time is about 2-3 weeks.
- Alien Registration Card (ARC) - All expats working in ROK need ARC which requires about 2-3 weeks to be obtained.