Business hours in Korea
Koreans are diligent and faithful to their work. In 2012, their average annual working hours were 2,163 – the second highest among OECD countries. The labour productivity index has also steadily risen in recent years, with Korea recording one of the highest increases in labour productivity in the OECD between 2009 and 2013.
Employers should also be aware that Korea has conscription - compulsory military service, for Korean men aged between 18 to 35 years. Most men will undertake their required military service generally in their late teens or early twenties. The length of conscription varies between 21-36 months. This means that someone of a certain company position may seem to be older than what they would be in the same position in Australia.
Korea has a vibrant entertainment scene and if potential business partners present an invitation to socialise, this is a positive sign and the offer should be taken up. Socialising with Korean business partners is a very effective way to build a relationship and is most important in the early stages of a business relationship. Thereafter, socialising with your Korean business partners is only required occasionally. Note that you should be careful not to organise meetings that overlap with dinner or lunchtime. Many Koreans will become fidgety at 12pm and will want to go to lunch. The entire Korean staff will tend to be out of the office between noon and 1pm.
A typical night out usually involves four stages, starting with dinner. Women can attend dinner, but traditionally do not take part in the later stages of the night – although it is becoming more common for foreign business women to do so. It is best to be guided by your hosts. The second stage may involve drinking and karaoke, which Australian businessmen will be expected to attend. The third and fourth stages involve progressing to multiple other venues. These final stages are generally for the Koreans only, and Australians are not necessarily expected to take part.
There is a strong “work and play” mentality in Korea. It is not unusual for men to go out five times a week, play golf on Saturday, and have a family day on Sunday. In the office, however, Koreans work hard and put in long hours
Minimum conditions for employees are set out in the Labour Standards Act. Working hours, severance pay, health and safety, compensation for industrial accidents, and labour contracts are all covered by this act. The Employment Insurance Act grants benefits to jobless workers and aims to promote employment through improving employee skills and employability. Compensation and insurance coverage for industrial accidents is guaranteed in the Industrial Accident Compensation Insurance Act.
On holidays/annual leave, the Korean Standards Labour Act states:
- An employer should grant 15 days paid leave to a worker who has registered more than 80 per cent of attendance during one year. After the first year of service, an employer should grant one day paid leave for each two years of consecutive service in addition to the leave for the first year.
- An employer should grant one day paid leave per month to a worker whose consecutive service period is shorter than one year, if the worker has offered work without absence throughout a month.
Want to learn more? Explore our other South Korea information categories or download the Korea Country Starter Pack.