Hiring a Korean Independent Contractor for Work in Korea

The factors a Korean Court shall, typically, look at to determine if one is an “employee” and thus not an “independent contractor” are:

• Does the company have decision-making power over the content of the work of the individual?
• Are company rules of employment applied to the individual?
• Does the individual have business risks associated with working with the company?
• Does the company have substantial control over the work processes of the individual?
• Does the company set the time and date and other specifics of the work of the individual?
• Does the company own the work assets of the individual?
• Can individuals use a third party to replace the work of the individual?
• Are earnings based on work, not success/sales?
• Does the individual nearly exclusively depend on the work from the particular company?
• Is the work with the company continuous, thus, not temporary?
• Is the individual deemed an employee under the Social Security System?

We have written a good deal about distribution agreements on this blog in the past. Please take a look at these, below, articles for more details on doing business in Korea, Korean employment law, and distribution and agency agreements.

• Distribution Agreements in Korea: Crawl Before you Walk
• Finding a Korean Distributor: Top Ten Musts
• Entering into a Joint Venture/Partnership in Korea
• Independent Contractor Obligations in Korea: Amcham Speech

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Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. He is ranked, for Korea, as a Top Attorney and his law firm is ranked a top dispute resolution law firm.

You may schedule an initial free consultation with our Attorney at: Schedule a Call with an Attorney in Korea to discuss establishing or expanding your business into Korea.