Guide to employment, payroll and benefits in

Korea (Democratic People's Republic of)

Rivermate offers complete payroll, benefits and compliance services for

Korea (Democratic People's Republic of)

01. Overview

Last updated: 

August 19, 2021

North Korean Won
Ease of doing business
GDP growth

02. Grow your team in

Korea (Democratic People's Republic of)

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Korea (Democratic People's Republic of)

, particularly if you don't have established local relationships. You can hire employees in

Korea (Democratic People's Republic of)

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

The Democratic People's Republic of Korea, or North Korea, is a nation in East Asia that occupies the northern half of the Korean Peninsula. It shares the Yalu and Tumen rivers with China and Russia to the north, and the Korean Demilitarized Zone with South Korea to the south. North Korea, like its southern neighbor, claims to be the rightful ruler of the peninsula and its surrounding islands. Pyongyang is the capital and main city of North Korea. Korea was conquered by Imperial Japan in 1910. Korea was split into two zones in 1945, following the Japanese surrender at the end of World War II, with the Soviet Union occupying the north and the United States occupying the south. After unsuccessful reunification negotiations, two regimes emerged in 1948: the socialist Democratic People's Republic of Korea in the north and the capitalist Republic of Korea in the south. The Korean War began in 1950 with a North Korean invasion and lasted until 1953. A cease-fire was achieved through the Korean Armistice Agreement, but no peace treaty was concluded. North Korea is an "independent socialist state," according to Article 1 of the constitution. North Korea conducts elections, though they have been characterized as sham elections by international observers, as it is a authoritarian regime with an elaborate cult of personality centered on the Kim dynasty. The Workers' Party of Korea, which is headed by a member of the ruling family, is the most powerful party in the country and leads the Democratic Front for the Reunification of Korea, which all political officers must join. Juche is the official ideology of North Korea, according to Article 3 of the constitution. The state owns the means of production by state-run companies and collectivized farms. The majority of programs, including healthcare, education, housing, and food production, are subsidized or provided by the government. Between 1994 and 1998, North Korea experienced a famine that killed between 240,000 and 420,000 people, and the population continues to be malnourished. Songun, or "military-first" strategy, is followed by North Korea. With a total of 9,495,000 active, reserve, and paramilitary personnel, or approximately 37% of its population, it is the country with the most military and paramilitary personnel. It has the world's fourth-largest active duty army, with 1.21 million soldiers making up 4.7% of the population. The United Nations' 2014 investigation into human rights violations in North Korea concluded that "the gravity, scope, and existence of these violations show a state that has no counterpart in the contemporary world," with Amnesty International and Human Rights Watch agreeing. North Korea's government denies any wrongdoing. Nonetheless, North Korea is a member of the Non-Aligned Movement, the G77, and the ASEAN Regional Forum, in addition to being a member of the United Nations since 1991.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Notice period

Severance pay

Probation period

07. Working hours



08. Minimum wage


The KIC Labor Law stipulates that North Korean workers must be paid a minimum of U.S $50 per month. Their hourly rate is $0.25.

09. Employee benefits


10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Korea (Democratic People's Republic of)

to hire a team takes time, money, and effort. The labor law in

Korea (Democratic People's Republic of)

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Korea (Democratic People's Republic of)

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Korea (Democratic People's Republic of)

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Korea (Democratic People's Republic of)

via our Employer of Record / PEO solution.

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