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Embark Recruiting

As former native English teachers in Korea, we know exactly what it’s like to navigate teaching abroad. That’s why we’re committed to increasing transparency in schools and improving Korea’s ESL teaching industry.

At Embark Recruiting, we provide full support to help you succeed. Our blogs offer guidance, tips, and insider knowledge for teaching in Korea.

Posts : Tax and Labor Rights (2)

All About Embark (4) Embark Services (7) Teaching in Korea (3) Visa and Immigration Guide (14) Tax and Labor Rights (2) Life in Korea (2) Resources and Forms (44)

2025 Year-end Tax Settlement in Korea for Native English Teachers

by Embark Recruiting

Tax and Labor Rights (2/2)

2025 Year-end Tax Settlement in Korea for Native English Teachers

As a native English teacher, you will pay income tax on your earnings. Your school withholds this tax each month and sends it to the Korean tax authorities. At the end of January each year, or when leaving Korea, you need to complete a year-end tax settlement to finalize your tax liability. You are eligible for the same income deductions and tax credits as Korean workers. Source: Hometax (2024 Foreign Language Manual for 2024 Year-End Tax Settlement) Step-by-Step Guide for Year-End Tax Settlement (2024 Figures) 1. Calculate Gross Wage & Salary Income (Annnual Wage & Salary Income (-) Non-Taxable Income) 2. Calculate Adjusted Wage & Salary Income (Gross Wage & Salary Income (-) Wage & Salary Income Deduction) Based on your "Gross Wage & Salary" bracket, your income deduction differs (progressive) Most teachers fall within an annual wage between 15 Million KRW ~ 45 Million KRW E.g., Gross Wage & Salary Income = 30 Million KRW Adjusted Wage & Salary Income = (30 Mil. - 7.5 Mil. + (30 Mil./15 Mil. x 0.15)) = 22.5 Million KRW Source: National Tax Service 3. Calculate Tax Base (Adjusted Wage & Salary Income (-) Other Deductions) E.g., Adjusted Wage & Salary Income = 22.5 Million KRW Pension Premium Deduction = 1.2 Million KRW Tax Base = (22.5 Mil. - 1.2 Mil.) = 21.3 Million KRW Source: National Tax Service 4. Calculate Income Tax/Tax Amount (Tax Base (x) Tax Rate) Based on your "Tax Base" bracket, your tax rate differs (progressive) Most teachers fall within a tax base of over 14 Million KRW ~ 50 Million KRW, or less E.g., Tax Base = 21.3 Million KRW Tax Amount (840,000 + (21.3 Mil. x 0.15)) = 4.035 Million KRW Source: National Tax Service 5. Calculate Final Tax Liability/Determined Tax Amount (Calculated Tax Amount (-) Tax Exemption/Credit) Based on your "Gross Wage & Salary" bracket, your tax credit amount differs (progressive) E.g., Gross Wage & Salary Income = 30 Million KRW Tax Credit Amount = 740,000 KRW Source: National Tax Service 6. Calculate Payable/Refundable Tax (Determined Tax Amount (-) Prepaid Tax) Prepaid tax - Monthly amount withheld from wage & salary income according to the simplified tax withholding table (national tax) or at a 19% flat tax rate.* E.g., Determined Tax Amount = 740,000 KRW Prepaid Tax (35,600 x 12) = 427,200 KRW Tax Payable (740,000 - 427,200) = 312,800 KRW/year Please note that year-end tax settlements vary not only based on your annual wage and salary income, but also on additional variables, such as your spending patterns (deductible expenses) and your family or dependent status. According to the 2025 National Tax Statistics Yearbook, the average per-capita tax payment in 2023 was 1.13 million KRW. Additionally, approximately 28% of the population (14,899,752 people) received refunds, with an average refund amount of 824,358 KRW per person. Note: Teachers may opt to pay a 19% flat tax instead of the standard progressive rate, which ranges from 6% to 45%, under Article 18-2 of the Restriction of Special Taxation Act. We don't recommend this option, as it's higher than the average tax burden for teachers.

Labor Rights for Native English Teachers in Korea

by Embark Recruiting

Tax and Labor Rights (1/2)

Labor Rights for Native English Teachers in Korea

Legal Protections for Native English Teachers South Korea’s laws and constitution promise equal rights and protection from discrimination for all workers. Native English teachers may wonder if these protections truly apply to them. The good news is, native English teachers in Korea’s private academies and schools are recognized as legal employees with the same labor rights as Korean citizens. Whether a native English teacher qualifies as a “worker” under the Labor Standards Act DOES NOT depend on the job title or contract label (such as “freelance,” "contractor," or “employee”), but on the actual nature of the working relationship. If the teacher performs labor under the school’s (employer) direction and control in exchange for wages, they are considered an employee. Labor Standards Act (See full version here) Article 6 (Equal Treatment) “An employer shall neither discriminate against employees on the basis of gender, nor take discriminatory treatment in relation to terms and conditions of employment on the ground of nationality, religion, or social status.” Factors that indicate an employee relationship include: Employer/School defines the work and tasks Subject to company policies and rules Employer/School supervises and directs the work Work hours and location are set by the employer/school Worker/Teacher does not independently own tools or materials Worker/Teacher cannot hire substitutes Worker/Teacher bears no financial risk of profit or loss Compensation is tied to the work performed A fixed or base salary is provided Employer/School withholds income tax Work is continuous and dedicated to one employer/school Employee/Teacher status recognized under social security laws Given these criteria, the majority of native English teachers employed by private academies and schools in Korea are legally classified as employees under the Labor Standards Act. This classification guarantees them equal labor rights, fair treatment, and protections equivalent to those enjoyed by Korean workers.