BOARD
Hiring Compliance in Korea: What HR Managers Must Know
- Date2025/04/25 00:29
- Read 46
If you're planning to hire new employees, it's crucial to understand the Fair Hiring Procedure Act ("채용절차의 공정화에 관한 법률") in advance. Unintentional violations of this law can not only result in fines but also damage your company’s reputation.
1. Who Must Comply with This Law?
According to Article 3 of the Act, businesses with 30 or more regular employees are subject to this law.
However, keep in mind that this law applies only to the hiring process—once an employment contract is signed, it no longer applies.
However, keep in mind that this law applies only to the hiring process—once an employment contract is signed, it no longer applies.
2. Is Your Job Posting Genuine? False Recruitment is a Serious Offense
Article 4 of the Act strictly prohibits posting job ads for purposes unrelated to actual hiring, such as collecting business ideas or promoting the company.
Violators may face up to five years of imprisonment or fines of up to KRW 20 million.
3. Want to Change the Job Posting? You’ll Need a Justifiable Reason
Once a job ad is posted, making changes that disadvantage applicants (such as modifying employment terms) requires a legitimate reason.
Even after notifying an applicant of their acceptance, changing key terms before signing the employment contract may be a violation.
Even after notifying an applicant of their acceptance, changing key terms before signing the employment contract may be a violation.
Example: If a candidate applies for a permanent position but is later told it has become a contract-based role without prior notice,
→ This may result in a fine of up to KRW 5 million.
→ This may result in a fine of up to KRW 5 million.
4. No Pressure, No Favors — Maintain Fairness in the Hiring Process
Any of the following behaviors are strictly prohibited under Article 4-2 of the Act:
-
Applying external pressure, making requests, or forcing hiring decisions
-
Offering bribes or entertainment in exchange for employment
Violators may be fined up to KRW 30 million.
5. Personal Information You’re Not Allowed to Ask
Employers must not collect personal information unrelated to job duties during the screening process.
Examples of Prohibited Personal Data:
-
Physical attributes (e.g., height, weight, appearance)
-
Hometown, marital status, financial status
-
Educational background, occupation, or assets of family members (including siblings or direct relatives)
Even if the applicant consents, such collection is still illegal, and violations may result in fines of up to KRW 5 million.
6. Do Not Shift Hiring Costs to the Applicant
Employers cannot require job seekers to pay for expenses incurred during screening, such as medical exams or certification tests, unless explicitly approved by the Ministry of Employment and Labor.
While applicants may choose to cover personal expenses such as travel or accommodation for interviews, any costs directly required by the employer must be borne by the company.
Failure to comply may result in a correction order and, if not followed, a fine of up to KRW 3 million.
Hiring isn’t just about filling a vacancy—it's the first step in building trust with potential employees.
A small oversight during the recruitment process can easily lead to legal violations.
A small oversight during the recruitment process can easily lead to legal violations.
We recommend that all employers thoroughly review applicable laws before proceeding with recruitment.
For more tailored advice, click the image below or reach out to us via email.
Please note that all consultations, except for quote requests, are fee-based.
Please note that all consultations, except for quote requests, are fee-based.