Over the last few years, there has been increasing interest in hiring foreign employees through EOR in South Korea. More companies are prioritizing foreign investment and South Korea is one of the top markets, although hiring in South Korea can be tricky. But if it is done right, it can help your business grow and thrive in this international market.
Before you start investing in South Korea, let’s dive deeper into understanding EOR.
What is EOR
When a company is looking to expand into new markets overseas, there are three options to hire foreign employees:
1. Directly hire employees (through your own foreign entity)
2. Register and hire a subsidiary (which takes time and money)
3. Hire via EOR (and get the best of both worlds)
Employer of Record (EOR), also known as human resources dispatch in Korea, is a comprehensive employer service for companies that want to expand globally. Using an EOR model allows Blueback to act on behalf of the employer of record by hiring our client’s employees. We do this through Blueback’s established international entities. Then your business and employees maintain a normal working relationship.
EOR allows for you to quickly employ people in another country. In the last few years, it has become an employment trend and increased in popularity with changes in the global labor market. With an employer of record relationship, we take on the responsibility and risk while your people enjoy employee status in their own country. Manage their benefits without worrying about the risk profile of operating an entity.
Why South Korea?
One of the reasons that South Korea has seen increasing interest and become a target for global expansion is the opportunity for foreign investment. Korea is a growing market. Its business-friendly policies contribute to the fact that it’s ranked at 5 for ease of business according to The World Bank.
Throughout its history, South Korea has experienced rapid economic development. South Korea’s economy and workforce are highly developed and specialized. The economy focuses on tech, automotive, manufacturing, and other services. The workforce is highly sought after for being both greatly educated and extensively skilled.
Based on statistics from Trading Economics, the unemployment rate decreased from 3.1% to 2.9% from December 2022 to January 2023. The economy has continued to see jobs added for 23 consecutive months. Korea’s recovery post-pandemic was quite successful, adding 816,000 jobs in 2022.
Learn more about South Korea labor laws.
How Blueback Korea Can Help You
Blueback Global, a TopSource Worldwide Company, is an HR outsourcing and advisory organization. Founded in the United States in 2013, Blueback offers services in over 180 countries worldwide. Blueback entered the Korean market in 2021 and established a team in Gangnam-gu, Seoul. Along with providing EOR services, Blueback Korea’s comprehensive HR services also include overseas corporation establishment, domestic talent dispatch, and headhunting.
Blueback Global makes going international easy – by utilizing Blueback Korea’s EOR services, you can avoid running into unexpected legal problems while expanding your business. Run your global business in Korea without establishing a branch or corporation. Let BG-S Korea handle all your HR needs including hiring employees, securing work permits, and complying with all employment laws.
Let us be your international people. Blueback Korea specializes in hiring specialized employees such as IT developers. We can help you take care of all your HR processes including drafting employment contracts, registering for joining and leaving the company, payroll services, taxes, and more.
Last November, it was announced that Blueback Global was acquired by TopSource Worldwide. TopSource, founded in 1989, is based in the UK with a strong presence in India. Historically, TopSource has specialized in global payroll and more recently has expanded to offer EOR services.
The acquisition of Blueback Global makes it the seventh acquisition for TopSource Worldwide since 2020. The merger of these two companies provides increased capabilities of joint payroll and HR solution services to companies that want to expand globally in more than 150 countries. We look forward to expanding our strengths and offerings through this exciting period of transition!
Get Started with EOR in South Korea
Many companies have found great success in expanding to South Korea and there continue to be many attractive business opportunities for new companies looking to expand. Though global expansion is still a popular trend, it is not always the most timely process or absent of complications. But with Blueback’s Employer of Record Services, we can help you employ the people you need to grow your business fast, easily, and compliantly.
Connect today with our team of experts and find how our depth of knowledge and proven in-market experience can elevate your global expansion in South Korea and around the world.