Key Changes in Korean Labour Law (2025)

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.

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