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Placement fees and how they are calculated
Placement fees stay within the cap set by the Ministry of Employment and Labor and are charged only after an employment contract is signed. The examples below show the actual cap amounts.
Placement fee caps
Ministry of Employment and Labor Notice No. 2017-22 (effective July 1, 2017)| Who pays | Employment under 3 months | Employment of 3 months or more |
|---|---|---|
| Employer | Up to 30% of wages agreed for the employment period | Up to 30% of wages agreed for 3 months |
| Employer · daily construction work | Up to 10% of wages agreed for the employment period | Up to 10% of wages agreed for 3 months |
| Job seeker | Up to 1% of wages to be received for the employment period | Up to 1% of wages to be received for 3 months |
When is the placement fee paid?
- Only after the employer and the job seeker sign an employment contract. An interview or introduction alone does not create a fee.
- Any fee from a job seeker must be based on a written agreement signed in advance.
With an annual salary of KRW 30 million, what is the maximum fee?
If employment lasts 3 months or more, the basis is 3 months' wages whether the contract is for one year or three. At KRW 30 million a year (KRW 2.5 million a month), the employer fee cap is KRW 2.25 million.
| Conditions | Calculation | Employer cap | Job seeker cap |
|---|---|---|---|
| KRW 2.5M a month · 1-year contract | 2.5M × 3 months × 30% · 1% | KRW 2,250,000 | KRW 75,000 |
| KRW 30M a year · 3-year contract | 3 months or more, so 3 months' wages | KRW 2,250,000 | KRW 75,000 |
| KRW 2.5M a month · 2-month contract | 2.5M × 2 months × 30% · 1% | KRW 1,500,000 | KRW 50,000 |
| Daily construction · KRW 4M for 1 month | 4M × 10% · 1% | KRW 400,000 | KRW 40,000 |
Which wages count
- Wages as defined in Article 2(1)5 of the Labor Standards Act (money paid by the employer in return for work).
- If the employer provides room and board, up to KRW 50,000 a month may be added to wages.
Is the cap different for senior professionals?
For senior professionals in the occupations listed in Annex 1 of the Enforcement Rule of the Employment Security Act whose agreed annual pay is in the top 25% of earnings for Major Group 2 (professionals) of the Korean Standard Classification of Occupations, the fee agreed between the parties may be charged to the employer. We check this against the job conditions during consultation.
Our placement fee
Our fee is set within the caps above in a placement fee agreement, and the fee table is posted inside our office.
Visa work is charged separately
Status change and visa issuance certificate applications and the employment justification letter are handled under an administrative service contract separate from the placement contract, with VAT charged separately. We will give you an exact quote after reviewing your documents.
Legal basis
- Ministry of Employment and Labor Notice No. 2017-22, Notice on Domestic Fee-charging Job Placement Fees (effective July 1, 2017)
- Employment Security Act Art. 19(3); Enforcement Decree Art. 25(6); Enforcement Rule Art. 18-2(1)
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