Opening a recruitment company in South Korea falls under the provisions of the Employment Security Act. The law stipulates the conditions to be met by natural persons and companies seeking to offer headhunting services in this country.
Below, our company formation agents in Korea explain in detail how to create a staffing agency. You can rely on our support to make sure you comply with the requirements of the dedicated legislation.
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Who can open recruitment companies in Korea?
Both Korean nationals and foreigners are allowed to carry out recruitment services in South Korea as long as they comply with a few minimum requirements. Among these, we mention the following:
- register a company or cooperative in South Korea with the purpose of providing job placement services;
- ensure the minimum capital for the operations of the recruitment company;
- appoint experienced managers or persons with specific qualifications under the National Lifelong Vocational Skills Development Law.
As a foreign investor, you will also need to comply with the regulations on immigration to Korea. For this purpose, you can rely on our lawyers to help you apply for residency in South Korea.
Requirements to open a recruitment agency in South Korea
In order to start a business in Korea and operate it as a headhunting company, you must ensure the following:
- a minimum capital of WON 50 million (approx. USD 38,000) for at least 2 head offices;
- an additional WON 20 million (approx. USD 15,000) per each additional office;
- appoint at least 2 managers with experience or qualifications under the law indicated above.
Please note that if you intend to run your business as a cooperative, you can not register it as a social cooperative. This is why we recommend using our company registration services in Korea to ensure the correct incorporation of the selected legal entity.
Appointing the officers in a staffing company in Korea
The Employment Security Law contains strict provisions on the qualification of the personnel offering recruitment services in Korea. According to it, the managers must be qualified job counselors, in accordance with the National Technical Qualifications Law, and must have any of the following capabilities:
- at least 2 years of experience in the field of job consultation, guidance, or training, as well as other qualifications related to job placement;
- a certification as a labor affairs consultant, in accordance with the Certified Public Labor Attorney Law;
- he/she is a member of a trade union with at least 100 members or any other similar organization with a minimum of 2 years of participation in the respective association;
- 2 years of experience in a labor-related position in a company with a minimum number of 300 employees;
- he/she is a certified social welfare worker.
Teachers with 2 or more years are also accepted as managing officers in Korean recruitment companies.
The authorization to operate a recruitment company in Korea is issued by the Ministry of Employment.
Services provided by headhunting companies in South Korea
A Korean recruitment agency can offer various services, as follows:
- job placement and advertising;
- consultation services to employers and job seekers;
- recommendation of job to clients;
- confirmation of employment or hiring on behalf of clients.
If you decide to open a recruitment company, you must also comply with the legislation applicable to all Korean businesses, including respecting accounting regulations. For this purpose, you can rely on our accountants in Korea.
Do not hesitate to contact us for support with the entire procedure of setting up a recruitment agency in Korea.