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Key Changes in Korean Labour Law (2025)

Published: Monday, August 4, 2025

Executive Summary

This article provides an overview of recent updates to Korea's labour law framework in 2025, covering new wage rules, leave entitlements, workplace safety obligations, and anti-discrimination policies.

South Korea’s labour law landscape has undergone significant transformation through 2024 and 2025, introducing new protections and compliance challenges for employers.

Minimum Wage and Wage Practices:

From January 1, 2025, the national minimum wage increased to ₩10,030 per hour, with bonuses and cash benefits factored into the calculation. Employers must ensure wage structures and contracts reflect this adjustment. Stricter penalties now apply for delayed wage payments, including interest charges and potential litigation.

Leave Entitlements:

Recent amendments have strengthened family-related leave, extending maternity and paternity rights and introducing clearer entitlements for miscarriage, stillbirth, and fertility treatment. Companies must update employee handbooks and leave policies to avoid non-compliance.

Workplace Safety and SAPA:

The Serious Accident Punishment Act (SAPA) now fully applies to small and medium enterprises. Enforcement is intensifying, with increased inspections and heavier penalties for safety breaches. Boards and executives are expected to take a proactive role in workplace safety management.

Discrimination and Wage Parity:

Gender pay transparency and anti-discrimination enforcement are on the rise. The Supreme Court recently ruled that wage-peak systems—where salaries decline as employees near retirement—can amount to unlawful age discrimination. This precedent is prompting reviews of age-based policies.

Mandatory Retirement Debate:

Mandatory retirement at 60 remains legal, but human rights advocates are pushing for reform, highlighting potential conflicts with anti-age discrimination principles.

Employer Actions:

Businesses should audit compensation systems, revise HR policies, and strengthen safety programs. Attention to diversity, equality, and transparent pay practices will be essential to managing legal risks in the evolving Korean labour environment.

If you would like advice on any of the above issues, please contact us.


Mark Benton
Ahnse Law Offices
Country:
Korea (South)
Practice Area:
Corporate
Website:
www.ahnse.com
Phone Number:
02-743-0400
Email:
Fax:
02-762-2900
Education University of Birmingham, England (LL.B) Anglia Ruskin University, England (LL.M) Profesional Experience rhw Solicitors, (2005-2007) (Associate) Abrahams Dresden Solicitors, London EC1 (1998-2004) (Partner) Financial Services Compensation Scheme (1996-1998) Sumitomo Banking Corporation (1996-1997) The Firm Ahnse is a full service international law firm which has been providing quality legal services to domestic and international clients since 2003. With lawyers qualified in Korea and foreign jurisdictions, Ahnse is a law firm with a broad skill set. Importantly, we are able to see both sides of the cultural equation in an international transaction giving us greater insight and enabling us to achieve the desired results for our clients. The word ‘Ahnse’ derives from a Chinese character the translation of which approximates to “peaceful world “, which means sharing the burden with our clients and quietly and diligently finding the appropriate legal and commercial solution in a creative and efficient manne
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