Japan
South Korea
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. South Korea: A single Korean national employee in Seoul, no dependants, tax resident, salary paid evenly as monthly pay with no bonus and no non-taxable allowances (e.g. the KRW 200,000/month meal allowance), calendar year 2026. Deductions claimed: earned income deduction, basic personal deduction, National Pension and the health, long-term care and employment insurance premiums only; no credit-card, housing, insurance, medical, education or donation items. Employer: office-type business (professional services) with 150-999 employees, not an SME priority-support firm. Retirement benefit accrued at 1/12 of salary.
At three salary levels
| Salary (US$ equivalent) | Japan | South Korea |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.19× Keeps 80% ₩79,467,167 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.17× Keeps 72% ₩158,934,334 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.16× Keeps 64% ₩331,113,196 |
Employment rules compared
| Japan | South Korea | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 15 days after 1 year, +1 per 2 years, max 25 |
| Public holidays in 2026 | 18 | 22 (Seoul) |
| Notice of dismissal | 30 days, or pay in lieu | 30 days (or pay in lieu); none under 3 months' service |
| Severance required by law | None | Retirement pay: 30 days' wages per year, on any exit |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | No statutory period; 3 months typical |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40h/week + max 12h overtime |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Hard: justifiable cause; LRC reinstatement claims |
| Women in management (ILO) | 14.5% (2023) | 18.1% (2025) |
Questions
What does a US$120,000 salary cost an employer in Japan and South Korea?
With the rates and exchange rates as of October 2026, in Japan (Tokyo, ¥18,816,403) the employer’s total cost is 1.10 times the salary; in South Korea (₩158,934,334) it is 1.17 times. The employee keeps 66% of salary in Japan and 72% in South Korea.
Is it cheaper to employ someone in Japan or South Korea?
At this salary, the employer’s on-cost is lower in Japan. The ratio changes with pay, though: where contributions are capped, the on-cost falls as a share of salary for high earners. Enter the real salary in the calculator above to compare.
How do notice and severance compare?
Japan: 30 days, or pay in lieu; no severance is required by law, and negotiated exits are commonly 3–6 months’ pay plus unused leave. South Korea: notice is 30 days (or pay in lieu); none under 3 months' service; severance required by law: retirement pay: 30 days' wages per year, on any exit; typical negotiated exit: no official benchmark.
Which has more paid leave and public holidays?
Japan: 10 days after six months, rising to 20; 5 days must be taken, and 18 public holidays in 2026. South Korea: 15 days after 1 year, +1 per 2 years, max 25, and 22 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). South Korea: every rate and rule is listed with its primary source on South Korea's HR data. Exchange rates: ECB reference rates (2026-10-23); for currencies the ECB does not quote, the central bank's rate.
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