A defensible termination begins before the dismissal letter. Where the Korean Labor Standards Act’s dismissal protections apply, an employer needs justifiable grounds and must follow required procedures. For employees covered by the Korean Labor Standards Act’s dismissal protections, an employer needs legally sufficient grounds and must satisfy applicable procedural requirements. The commercial objective should be a defensible separation, not simply getting the employee out of the building. The following ten strategies provide an employer-side framework under South Korean law. Start with an HR audit. Engage Korean employment
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Dealing with Korean Employees and Suppliers by Tom Coyner
*This is a post by Tom Coyner from nearly two decades ago. We thought that, given recent employment law changes in Korea, the post would be a useful repost. Even for so-called Old Korean Hands, knowing what to expect, without knowing why, can lead to needless frustrations and often delays in getting things done in business in Korea. As the old adage goes, time is money, so knowing the root causes of delays offers potential insights on how to clear log jams. While we do not have
Continue readingCan you Revise Employment Rules in Korea without the Agreement of Employees?
The Guidebook on Wage System Reform, published by the Korean Ministry of Employment & Labor, has sparked more interest, in the private sector, than the revamping of Korea’s wage system based on seniority. This post was reposted after a first posting in 2017, because of a newfound focus on wage system reform. The major issue, in this regard, is whether the Rules of Employment of a company may be amended, without violating the Korean Labor Standards Act of Korea (“LSA”), when “wage system reform” is not consented
Continue readingSK Hynix Injunction Against Employee Rejected by Seoul Central District Court
SK Hynix lost an injunction case seeking to enjoin a former employee from transferring jobs to Samsung Electronics (2025KaHap21284). SK Hynix did not appeal the decision, and the decision was finalized on January 20, 2026. For an article on the Korean Supreme Court precedent on the enforceability of Non-Compete Clauses, please see: Non-Compete Clauses in Korea Facts SK Hynix Restrictive Covenant Enforcement Case at the Seoul Central District Court Holding On January 9, 2026, a Seoul Central District Court dismissed SK Hynix’s application for an injunction enjoining a
Continue readingKorean “Temporary Worker” Right to Employment Security under the Korean Labor Standards Act
A Korean court ruled that even if a worker is 55 years of age or older and hired as a temporary worker, the right to contract renewal is “continuously recognized unless there are special circumstances.” The Seoul Administrative Court ruled in favor of an employee on October 31, 2025, in a lawsuit filed by the Employee against the Central Labor Relations Commission of Korea, holding that non-renewal of the contract period constituted an unfair dismissal under the Korean Labor Standards Act. Facts1. Employee worked as a conductor
Continue readingProbationary Periods in Korean Employment Agreements: Korean Court Rules in Favor of Employee in Unfair Dismissal During Korean Probationary Period
Many employers in Korea, often due to ill-advised counsel, mistakenly believe that Korean probationary employment periods permit them to terminate workers without justification or even written notification. A recent ruling by the Seoul Administrative Court clarifies that probationary periods are not merely “evaluation periods,” and dismissing Korean employees during or immediately after probation requires specific, iterated grounds and compliance with Korean labor law formalities. For additional blog posts on Korean Labor & Employment Law, see: IPG Legal’s Labor & Employment Law Archive. Korean Probationary Employment Case Overview
Continue readingCoupang Fulfillment Services in Korea Found Liable for Unfair Dismissal and Union Suppression by Seoul Administrative Court
Coupang, an e-commerce company with its primary business in Korea, was found to have committed unfair labor practices in violation of Korea’s Trade Union Law and unfairly dismissed a worker in Korea in breach of the Korean Labor Standards Act. Coupang has been accused, on numerous occasions, of labor violations by foreign and domestic employees working for Coupang. NOTE: For full disclosure, IPG Legal is engaged for cases against Coupang by executives working for Coupang in Korea. While IPG Legal is typically engaged by foreign companies doing
Continue readingKorean Court Confirms Covid-19 Vaccination Injury and Compensation under Korea Workers’ Compensation System
A Korean appellate court ruled that a hospital employee who developed Guillain-Barré syndrome and nerve paralysis after receiving a COVID-19 vaccine should be recognized as having suffered an occupational injury that is compensable under Korea’s Workers’ Compensation Benefit System. The Seoul High Court ruled in favor of the Plaintiff in an appeal of a lawsuit denying benefits by the Korea Workers’ Compensation and Welfare Service. Korea’s COVID-19 Vaccine Workers’ Compensation Occupational Injury Case Holding of the Court of First Instance The Plaintiff filed an administrative lawsuit to
Continue readingKorean Human Resources and Labor Law Policy Shifts under President Jae Myung LEE Administration
We shall, under the President Lee Administration, see more labor-friendly laws and policies. Here is a list of the most noteworthy issues that are being talked about among the legal and business communities in Korea. For more articles on Korean Labor Law, please see: IPG Legal’s Labor & Employment Law Archive. Individual Labor Relations Amendments in Korea under the President Lee Administration The administration’s labor policy platform introduces several core changes likely to affect employment terms and workplace compliance obligations. Key developments include: 1. Abolition of the
Continue readingThe “Yellow Envelope Act” of Korea: Key Legal & Policy Considerations in Korea’s Proposed Labor Reform
The so‑called Yellow Envelope Act is a pending amendment (update: law was passed in August 2025) to Articles 2 and 3 of Korea’s Trade Union and Labor Relations Adjustment Act, currently under active deliberation in the Korean National Assembly. The amendments are supported by the Democratic Party of Korea (DPK) and labor unions. The bill seeks to expand union protections and significantly limit employers’ ability to pursue damages claims against workers for strike‑related losses. The amendment is named after civic donations made in yellow envelopes to support
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