Doing Business in South Korea with a PEO/EOR
South Korea is known for its advanced capabilities in numerous industries from chemical and raw materials processing to financial services. With a highly-educated and internationally exposed workforce, South Korea provides foreign investors with an opportunity to get the best of both worlds: the cost efficiencies of doing business in Asia compared to the West, and the talented workforce required to executive on business strategies. In recent years, South Korea has seen impressive growth in fields like pharmaceuticals, technology, insurance, and even manufacturing, making it a hotbed of international activity on the business front. Companies seeking to enter South Korean markets should, however, consider using a professional employer organization (PEO) or employer of record (EOR) for their employment needs, as the legal system can be difficulty to navigate and having a local presence is preferable.
Read on to discover the benefits of using a PEO/EOR in South Korea and to get rankings of the top providers.
Why Use a PEO/EOR in South Korea?
Although South Korea does have a distinct international business community, it is not necessarily the easiest place to establish an entity, set up bank accounts, register for social security, and manage the host of legal obligations that come with starting a business in South Korea. For that reason, foreign investors often turn to PEOs/EORs, who are able to handle all those responsibilities and liabilities on the company’s behalf. From contract creation and onboarding to payroll and retirement, a good PEO/EOR in South Korea will make expanding into the country a much more streamlined and cost efficient process.
Best South Korea PEOs/EORs
1. New Horizons Global Partners: www.nhglobalpartners.com
New Horizons Global Partners tops the PEO/EOR rankings for most Asian countries because of its extensive local presence and its ability to offer a full suite of business services (PEO/EOR related and others) on one invoice. NHGP works with Fortune 500 companies and is a well-respected and, importantly, trusted name. Although based in Shanghai, NHGP does have local agents in country, including in South Korea, and this ensures that their clients enjoy the benefits of an international PEO/EOR provider whilst still being able to understand and work within local societal and business expectations.
2. Velocity Global: www.velocityglobal.com
Another very well-respected organization offering PEO/EOR services in South Korea is Velocity Global. Velocity Global has a large client base and claims to operate in over 185 countries worldwide, meaning they are a strong partner for those companies that wish to place a number of employees in various countries all at once. While their local work in South Korea is, it would seem, executed by partners, the Velocity Global touch still ensures that businesses get professional and reliable service in the PEO/EOR arena.
3. KOISRA UP: www.koisraup.com
For companies looking to set up payroll and other HR services in South Korea, a good option could be a full service provider like KOISRA UP. KOISRA UP only operates in Korea, so is known as a leading specialist in that country. One of its strong points is being able to establish compliant operations in a number of areas from payroll and tax to contracts and dispute resolution alongside managing recruitment for staff needs in the country.