South Korea
Mandatory employee benefits in Korea under their social security system include healthcare and maternity leave. Common employer-sponsored benefits include private healthcare, retirement, voluntary benefits, and flexible benefits.
Country Insight
Mandatory employee benefits in South Korea
Focus on healthcare
Korea’s provinces and territories manage government-sponsored healthcare. The federal budget determines the provincial healthcare funding; however, each province/ territory manages its healthcare platforms through taxes or individual premiums.
Korea’s healthcare system is the subject of much political controversy and debate. Some question the efficiencies of the current system to deliver treatments in a timely fashion and advocate adopting a private system.
Conversely, there are worries that privatization would lead to inequalities in the healthcare system, with only the wealthy being able to afford certain treatments and services.
Supplementary employee benefits
Although the South Korean government provides national pension and national health care to employees, it does not provide enough benefits. Therefore, the employees expect the company to offer additional life, disability, and a medical plan. Other benefits include retirement, voluntary benefits, and flexible benefits.
Perks are not common in the country.
This information is provided by CAPACITY, Asinta’s employee benefits consulting Partner in South Korea. If you need support with your benefits in the country, please contact Asinta, and we will put you in touch with the local experts at CAPACITY.