Whether you’re in IT, oil and gas, software development, or telecommunications, working in South Korea requires a lot of forethought. Will you be subject to any visa restrictions, and will that affect future contracts in South Korea? How will you know what you owe in taxes, and how will you pay them?
Sometimes it’s hard to find reliable answers to questions like these. Keep reading to learn more about the issues that go along with contracting in South Korea, as well as how you can address them efficiently.
Getting Started: Do You Have a Contract Lined Up in South Korea?
If you don’t already have a potential contract in South Korea, you have a couple extra steps.
First, you need to research the demand in South Korea for your skillset. This is a crucial step; without it, our help is premature and you’ll lose out on time that would be better spent looking for work.
After you’ve extensively researched your prospects, check out our guide for finding work.
If you’re already negotiating or considering a contract and want to skip to how we can help you, jump here.
Are There Any Restrictions on South Korea Work Permits?
Once you have a potential job, it’s time to start thinking about work permits. To work in South Korea, you need a sponsored work permit.
This obstacle is a lot simpler if you’re a full-time employee; their employers can simply sponsor their permit. However, end clients are less likely to sponsor temporary workers.
Moreover, even if the client can sponsor you, you’ll need a new sponsorship each time you take a new contract in South Korea.
How Does the Tax System in South Korea Work?
As an independent contractor, taxes can be a headache even if you’re already familiar with the tax system.
When contracting in South Korea, you face both a foreign tax system and potential tax liability in your home country. You’ll want to ensure tax compliancy (while not paying more than you have to), but that can be difficult without specialist advice.
Facing these issues on your own is a huge time commitment and can distract from the reason you’re there in the first place: your contract.
Is There a Way to Make Working in South Korea Easier?
Yes. A popular solution for contractors is to use a contractor management company (or an “Umbrella Company”).
An Umbrella Company acts as your “employer,” despite the fact that you maintain your independence as a contractor. The Umbrella Company collects and processes your payments, deducting the necessary amounts for tax or social security. They can also sponsor you for a work permit, allowing you to take on different contracts without having to seek new sponsorship each time.
Furthermore, as specialists in tax law in South Korea, they can assure that you’re keeping as much of your earnings as you legally can.
If you’re already negotiating a contract in South Korea, an Umbrella Company is often the most effective way to eliminate the headaches of working in South Korea.
Unfortunately, there are many different Umbrella Companies in South Korea, each with their own advantages, fees, and structures. Finding the right company for you can be just another chore on an increasingly long list of things to sort.
For free, we help match contractors with Umbrella Companies. With a broad database of contractor management companies and years of experience working with local partners in South Korea, we can put you in contact with the best company for your position.
We listen to your individual circumstances and offer straightforward feedback. We will never forward your information without your permission, and we don’t charge anything, ever. Get in touch with us, let us know your details, and cut through the hassles of working in South Korea.