South Korea
Summary
South Korea strictly regulates temporary agency work through the Act on the Protection of Temporary Agency Workers, limiting contract duration to 2 years and requiring equal treatment.
Key Considerations
Monitoring Strategy
To stay updated on changes to South Korea's contingent workforce regulations, regularly monitor the Ministry of Employment and Labor website for updates to relevant laws and ordinances. Subscribe to alerts from the Korea Labor Institute and industry associations such as the Korea Employers' Federation. Legal updates from major Korean law firms specializing in employment law are also valuable sources of information on regulatory changes and court decisions that impact contingent workforce management.
Which jobs can use dispatched workers in South Korea?
Only permitted categories. The Act on the Protection of Temporary Agency Workers limits dispatch to a positive list of occupations set by decree, around 32 categories, with manufacturing production lines notably excluded outside temporary need situations. Using dispatch outside permitted jobs is illegal dispatch.
What is the maximum dispatch period in South Korea?
Two years. If a user company keeps a dispatched worker beyond two years, or engages in illegal dispatch, it comes under an obligation to directly employ the worker. Korean courts have applied this deemed-employment principle aggressively, including to disguised in-house subcontracting.
What is the difference between dispatch and in-house subcontracting in Korea?
Direction and control. In lawful subcontracting the vendor independently manages its workers; if the client's managers direct subcontracted workers as if they were their own, courts recharacterise the arrangement as illegal dispatch with direct-employment obligations. Several landmark manufacturing cases have turned on exactly this line.
How long can fixed-term employment last in South Korea?
Two years. Under the Fixed-term Employees Act, employment beyond two years on fixed-term contracts generally converts the worker to indefinite-term status, with limited exceptions for specific professional and age categories. Renewal management is therefore a hard compliance boundary, not a formality.
Do dispatch agencies need a licence in South Korea?
Yes. Temporary work agencies must be licensed by the Ministry of Employment and Labor and meet ongoing conditions, and equal treatment obligations apply between dispatched workers and comparable direct employees. Licence checks and treatment-parity clauses belong in Korean vendor contracts.