Korean labor law changes from 2025 to 2026 that employers must apply

This guide is for employers and HR staff in Korea. It updates a summary of the 2025 labor law changes with the rules in force on October 23, 2026, and adds the 2027 figures that are already fixed. Many figures change every year, so check the year next to each number.

Minimum wage

The 2027 rate applies to every business from January 1, 2027. If you pay hourly workers a rate that already includes the paid weekly holiday, a worker on 40 hours over 5 days needs at least ₩12,384 per hour in 2026 (₩10,320 × 48 ÷ 40), or ₩99,072 for an 8-hour day. For 2027 the figures are ₩12,840 and ₩102,720. The 90% probation rate is allowed only in the first 3 months of a contract of 1 year or longer, and never for the simple manual jobs listed by the Ministry of Employment and Labor (고용노동부). See 2027 minimum wage ₩10,700: notify workers by December 31, 2026.

Parental leave and pay

Update your work rules and leave forms. Maternity protection and work-family support are required items in work rules (Labor Standards Act (근로기준법), Article 93).

Unpaid wages: heavier sanctions

From October 23, 2025:

• Regular pay not paid on payday carries delay interest of 20% a year, even while the worker is still employed (Article 37).
• An employer who in the previous year failed to pay 3 or more months' wages, or failed to pay 5 or more times with arrears of ₩30,000,000 or more, can be named a habitual defaulter (상습체불사업주). Government subsidies can then be refused or limited, public tenders can deduct points, and the credit information agency can receive the data (Articles 43-3 and 43-4).
• Employers on the public list of defaulters can be banned from leaving Korea (Article 43-7).
• Workers can claim up to three times the unpaid amount in court in cases of clear intent, 3 or more months of unpaid pay within a year, or arrears equal to 3 months of ordinary wages (Article 43-8).

From October 8, 2026, failing to pay wages, final pay or overtime premiums is punishable by up to 5 years in prison or a fine of up to ₩50,000,000 (Article 107). Unpaid severance pay carries the same maximum from September 18, 2026. From December 8, 2026, labor inspectors take the new title 노동감독관.

Small businesses

The limit is 40 hours a week plus 12 hours of overtime by agreement, 52 hours in total. The extra 8 hours a week that businesses with fewer than 30 employees could add by written agreement with the workers' representative expired on December 31, 2022. The ministry's grace period ended at the end of 2024, and the extra 3-month correction window it offered when needed from January 1 to June 30, 2025 is over. Keep time records and approve overtime in advance.

In businesses with 4 or fewer employees, the Labor Standards Act still applies only in part. Written working conditions, notice of dismissal, settlement of final pay, breaks, weekly paid holidays and maternity leave apply. The limits on dismissal and working hours, paid public holidays, overtime premiums, annual leave and the workplace harassment rules do not. A government roadmap reported in August 2025 planned to extend the Act in stages up to the first half of 2027, but the rules in force had not changed as of October 23, 2026.

Social insurance rates

Employers also pay 0.25%~0.85% for employment stabilization and job skills development, depending on their size.

Work rules and whistleblowers

Employers with 10 or more workers must draw up work rules on the items in Article 93 and file them with the ministry, also after every change. Failing to do so brings an administrative fine of up to ₩5,000,000 (Article 116). See File changed work rules on Form No. 15 with workers' opinion or consent.

The Public Interest Whistleblower Protection Act (공익신고자 보호법) bans retaliation against people who report violations of the laws it lists, and bans obstructing a report or forcing its withdrawal (Article 15). Dismissal or other loss of status is punishable by up to 3 years in prison or a fine of up to ₩30,000,000; other retaliation or obstruction by up to 2 years or ₩20,000,000 (Article 30). A whistleblower can ask the Anti-Corruption and Civil Rights Commission (국민권익위원회) for protection within 1 year (Article 17), and an internal whistleblower whose report brings money back to a public body can claim a reward (Article 26).

Checklist

• Update payroll for the 2026 and 2027 minimum wage.
• Revise leave rules and forms for the 2025 and 2026 parental leave changes.
• Pay wages on payday; late pay now carries 20% delay interest.
• Keep weekly working hours within 52.
• Apply the 2026 social insurance rates.
• File updated work rules if you have 10 or more workers.