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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 (5)

All Country-Specific Visa Information (14) About Embark (4) Embark Services (7) Teaching in Korea (5) Visa and Immigration Guide (21) Tax and Labor Rights (5) Life in Korea (19) Resources and Forms (29)

Why is Sunday Considered a Paid Holiday in South Korea?

by Embark Recruiting

Tax and Labor Rights (5/5)

Why is Sunday Considered a Paid Holiday in South Korea?

Why Sundays Are Listed as a Paid Holiday in Korean Labor Law 1. Sundays Are Typically Designated as the Weekly Paid Holiday Under Article 55 of the Korean Labor Standards Act (근로기준법 제55조): "An employer shall provide workers with at least one paid holiday per week" 2. What “Paid Holiday” Actually Means The term “paid” means: The employee does not work that day, But still receives their regular wages as if they had worked. To qualify for the weekly paid holiday, employees generally must: Work their full contractual workweek, and Meet reasonable attendance requirements consistent with the law. If these conditions are met, the weekly holiday must be paid. 3. How This Differs from Public Holidays and Vacation Days Korea distinguishes between several types of holidays: 주휴일 (Weekly Paid Holiday) Legal basis: Labor Standards Act, Article 55 Usually designated as Sunday Paid 공휴일 (Public Holidays) Legal basis: Labor Standards Act + Presidential Decree Examples: Lunar New Year, Chuseok, National Foundation Day Paid (mandatory for private employers as of 2022) Company-Designated Holidays (사내 휴일) Determined by internal company policy May be paid or unpaid depending on contract 4. Important Clarification: The 11 Days of Paid Leave Do Not Include Sundays Under Korean labor law, employees are entitled to at least 11 days of paid annual leave in their first year of employment (assuming proper attendance). Many teacher contracts reference these 11 paid vacation days. It is important to understand: These 11 paid vacation days are separate from Sundays. Sundays are already counted as weekly paid holidays (주휴일). Annual leave days are additional paid days off. If a vacation period includes a Sunday, that Sunday does not count toward the 11 days of paid leave. In other words, Sundays are not deducted from a teacher’s annual paid vacation entitlement. Concept Korean Term Legal Basis Typical Day Paid? Weekly Paid Holiday 주휴일 Labor Standards Act, Art. 55 Usually Sunday Yes Public Holidays 공휴일 Labor Standards Act + Presidential Decree Varies Yes (mandatory as of 2022) Annual Paid Leave 연차 유급휴가 Labor Standards Act Scheduled by agreement Yes Company Holidays 사내 휴일 Internal policy Varies Depends In short, Sunday is commonly listed as a paid holiday because it is typically designated as the weekly paid holiday under Korean labor law. However, the law requires one paid holiday per week, not specifically Sunday, and annual paid leave (such as the 11 days provided in teacher contracts) is separate from weekly paid holidays and does not include Sundays.

by Embark Recruiting

Tax and Labor Rights (4/5)

Overview on Taxes and Insurances

Income Tax Like any other country, taxes are generated if you have a source of income in Korea. Taxation may however differ depending on mutual government agreements. Taxation eligibility Country Public school Academies United States Exemption for 2 years Taxed Canada Taxed Taxed United Kingdom Exemption for 2 years Taxed Ireland Taxed Taxed Australia Exemption for 2 years Taxed New Zealand Exemption for 2 years Taxed South Africa Exemption for 2 years Taxed The 4 major insurances. National Health Insurance: In Korea, employers must provide health and medical insurance. Health and medical insurance may cover medical, dental, or accidental coverage or a combination of the three. If health and medical insurance are covered, the employer may pay for all of it or the employer may pay half. Be sure to ask the employer if the insurance covers international hospitals as well as local hospitals. This is a mandatory subscription. Employment Insurance: It is a national insurance system implemented for protecting workers’ rights and interests. National Pension Scheme: This insurance is created to prepare for the time one is not able to work. (pension after retirement). It is also determined by mutual government agreements. Several countries require employers to pay into a pension, or retirement plan. In most cases, the employer pays half and the teacher pays the other half. Depending on a teacher’s citizenship and the agreement with the teacher’s home country, the pension can be claimed at the completion of the 1-year contract. Industrial Accident Insurance: Compensates the employees for any occupational accident. This insurance option that provides both employees and their employers a certain level of financial protection in case of an injury incurred on the job. 4 major insurances Insurance Employee Employer National pension 4.5% 4.5% National Health insurance 3.545% 3.545% Employment insurance 0.9% 0.9% Industrial accident insurance N/A Matched by employer Monthly Contribution = Monthly Average Wage X Contribution Rate (7.09%) You can pay online (113,050 KRW; only in Korean, but relatively painless). The National Pension System is a state-run social security system to help citizens prepare for situations in which they can no longer earn a living due to old age, unexpected disabilities or even death. After the mandatory premiums are paid, pension is provided as a source of income when the individual reaches a certain age, acquires a disability, or in the event of his/her death (provided to the bereaved family in this case). In the case of employee, premiums are calculated based upon monthly income. An amount equivalent to 9% of the monthly base income is to be paid as the monthly premium while the employer and the subscriber each take responsibility for paying half (4.5%) of the total amount. Individually insured foreigners (self-employed, etc.) must pay 9% of their reported monthly income. An eligible foreigner is paid a Lump-sum Refund plus its interest, for the period corresponding to his/her insured period in the same way a Korean national receives Lump-sum Refund benefit. By Social Security Agreement (22 countries): Canada, USA, Germany, Hungary, France, Australia, Czech Republic, Ireland, Belgium, Poland, Slovakia, Bulgaria, Romania, Austria, Denmark, India, Spain, Turkey, Sweden, Brazil, Finland, Quebec Eligibility on national pension Country Membership Subscription Refundable Payment United States Yes Lump-sum return/ can be added to US pension system. Canada Yes Lump-sum return/ can be added to the Canadian pension system United Kingdom Yes Lump-sum return (taxed) Ireland Yes Non-refundable/can be added to the Irish pension system Australia Yes Lump-sum return/ can be added to the Australian pension system New Zealand Yes Non-refundable South Africa No N/A How to claim your pension back when you leave Korea Claim before departure (receipt at Incheon Airport) Airport Payment Service Eligibility: A person eligible for a Lump-sum refund for the reason of returning to the home country and is scheduled to depart through Incheon Airport within a month How to apply: Visit the nearest branch office and apply for a lump-sum refund, at which point, a request should be made for the refund to be paid at the airport. A Lump-sum Refund is paid to foreigners when their departure from Korea has been confirmed. Application by mail (After departing from Korea) - Required documents: application (The application needs to be notarized by a notary public and then apostilled or attested by the local Korean consulate.), passport (copy), bankbook (copy) How to monitor your taxes (National Tax Service websites): https://hometax.go.kr/websquare/websquare.html?w2xPath=/ui/pp/index_pp.xml&menuCd=index3 https://www.nts.go.kr/english/main.do

E-2 Visa Letter of Release (LOR) for Native English Teachers in Korea

by Embark Recruiting

Tax and Labor Rights (3/5)

E-2 Visa Letter of Release (LOR) for Native English Teachers in Korea

What is a Letter of Release (LOR)? A Letter of Release, or LOR, is a required document when you’re leaving your employment contract early. You need to turn it in during the immigration appointment your visa transfer when switching to a new employer or a job search visa. LOR does not have a designated form. However, an effective LOR has the school’s name, date of issuance, a short explanation of granting permission to other schools to hire the teacher, contact information of the manager (Usually the director or vice director), and a signature/stamp from the school. How to Request a Letter of Release (LOR) from Your School LOR is required for E series visa holders to transfer jobs mid-contract. However, it is not required by law for schools to issue a LOR. Therefore, we recommend that teachers ask for one after trying to work out things with the current workplace, and to end things as amicably as possible to secure a LOR. Schools usually will provide the LOR on your last working day. 1. Give Proper Notice Provide as much notice as your contract requires, which is usually between 30 days and two months. Although in Korea, employees are not legally required to give advance notice, offering proper notice allows the school enough time to hire a replacement, which can be a slow process, especially if they are hiring from overseas. Giving notice also shows respect for the school. If you know you will not renew, inform the school about two to three months before your contract ends so they have ample time to prepare. 2. Explain Your Professional Reasons for Resigning As much as you may want to discuss problems within the school, be tactful in how you express them if you decide to. If there are legal or serious labor issues, report them directly to MOEL if they could not be resolved directly first. For the purpose of resigning, focus on personal growth, family needs, or new opportunities rather than criticizing the school. Unless there is serious workplace harassment and a toxic work culture, avoid speaking ill of your colleagues. A professional and respectful explanation helps maintain goodwill, which is especially important when you may need references later. Q: Why are you leaving the school? A: “I have really enjoyed my time here, but I’ve decided to pursue a new opportunity that aligns with my long-term career goals.” “I am leaving to focus on family and personal development. I’ve learned a lot here and am very grateful for the experience.” Q. Are you leaving because of problems at the school? A: “No, my decision is based on personal and professional reasons. I have enjoyed my time here and have learned a lot from my colleagues and students.” 3. Finish Your Responsibilities A strong finish leaves a lasting impression. Before you leave, wrap up every remaining task with care and attention. Even though you are preparing to move on, it is still important to care about the quality of your work and your students. This may include: Finalizing grading and student evaluations Organizing classroom materials for the next teacher Returning all school-related property and materials Leaving your classroom in excellent shape shows professionalism, reliability, and respect for your students and colleagues. It allows the next teacher to step in confidently and reflects well on you long after you have moved on. Q: Can you stay longer or adjust your final working date? A: “I am willing to help with the transition, and I can support the school until my final working day on [date], to ensure a smooth handover for the next teacher.” Q: Can we discuss extending your contract or offering changes to stay? A: “I appreciate the offer, but I have already made a decision based on my personal and professional plans. I want to make sure the transition is smooth for everyone.” 4. Communicate Clearly Clear communication sets the tone for a positive transition. Request an in-person meeting with your supervisor, vice-principal, or director to explain your decision respectfully. After the conversation, submit a written resignation letter that includes: Your intention to resign Your final working day A sincere expression of appreciation for your experience at the school Being open and organized helps build trust, ensures a smoother departure, and shows that you value professionalism. 5. Maintain Good Relationships The final weeks of your contract are an opportunity to leave on a high note. Stay polite, cooperative, and supportive as the school prepares for your departure. A positive attitude not only strengthens your current relationships but can also open doors for future opportunities. Many teachers find that former colleagues or supervisors later become valuable references, mentors, or connections. Legal Considerations and Potential Penalties When resigning mid-contract, there may be legal or contractual obligations to consider: • Contractual Obligations: Some teaching contracts include clauses regarding early termination. For example, you may be required to reimburse the school for benefits provided, such as airfare expenses, if you leave before completing your contract. Review your contract carefully to understand these terms. • Notice Requirements: While Korean labor law does not impose a mandatory notice period from workers to their employers, providing the notice specified in your contract protects you from potential disputes or claims for damages.

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

by Embark Recruiting

Tax and Labor Rights (2/5)

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 (1/5)

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.