---
title: "28.3 Percent of Direct Staff at South Korea's Large…"
canonical: "https://www.metaintro.com/blog/south-korea-direct-employment-107000-fixed-term-67000"
language: "en"
author: "drashtigarach"
published: "2026-09-29T13:59:59.000Z"
modified: "2026-09-29T13:59:59.000Z"
---

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# 28.3 Percent of Direct Staff at South Korea's Large Employers Are Now on Fixed-Term Contracts

Fixed-term staff rose 67,000 at the 4,205 Korean firms with 300+ workers, open-ended staff 41,000. What the data shows and how to check an employer now.

[![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach)

[September 29, 2026](/blog/archive/2026/09)13 min read

![Office workers seen from behind crossing a wide tree-lined street between glass towers](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/final-10395.jpg)

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South Korea's large companies are employing more of their own staff, but [a growing share](https://mbiz.heraldcorp.com/article/10887375) of their in-house staff are on contracts with an end date. The [2026 employment type disclosure results](https://www.moel.go.kr/news/enews/report/enewsView.do?news_seq=20012), published by the Ministry of Employment and Labor on Sept. 29, show that firms with 300 or more workers directly employed about [4.983 million people, an increase of 107,000](https://mbiz.heraldcorp.com/article/10887375), while fixed-term workers among them rose by [67,000 to about 1.412 million](https://mbiz.heraldcorp.com/article/10887375). For [Metaintro](https://www.metaintro.com) readers weighing an offer from a large Korean employer, the useful part sits below the headline, in which industries added the contracts, who is most likely to be on one and what the law says happens after two years. Here is what the release and the statute actually say.

## What Did the 2026 Disclosure Actually Count?

The disclosure system asks every company with [300 or more regular workers](https://mbiz.heraldcorp.com/article/10887375) to publish how its workforce is employed. The snapshot reflects employment as of [March 31 this year](https://mbiz.heraldcorp.com/article/10887375), so the figures describe the workforce as it stood in the spring rather than in September. The system has run since [2014](https://www.khan.co.kr/article/202609291420001/), and it splits workers into two groups, those the company employs itself and those who work on its sites but are employed by someone else, such as staffing agencies, subcontractors and outsourcing firms.

This year [4,205 companies](https://mbiz.heraldcorp.com/article/10887375) disclosed, covering about 5.918 million workers, which is 29 more companies and 91,000 more workers than last year. The ministry puts the disclosure rate at [99.9%](https://www.moel.go.kr/news/enews/report/enewsView.do?news_seq=20012), so the data covers almost every large employer in the country.

One caution from the ministry itself is worth keeping in mind. In a note attached to the release, the ministry treats its count of workers employed by someone else as [a different concept from the official non-regular worker figures](https://www.moel.go.kr/news/enews/report/enewsView.do?news_seq=20012), which come from a supplementary labour force survey run by Statistics Korea. So this release tells you how big employers structure their own workforce. It is not the national measure of insecure work.

## How Much Did Direct Employment Grow?

In-house employment went up in both number and share. Directly employed workers reached about [4.983 million, and their share of all disclosed workers rose from 83.7 percent to 84.2 percent](https://mbiz.heraldcorp.com/article/10887375).

Workers supplied by other firms went the other way. That group [fell by 16,000 to 936,000](https://mbiz.heraldcorp.com/article/10887375), and its share dropped from 16.3 percent to 15.8 percent. The ministry traced most of the fall to construction, where the number of workers employed by third parties fell by [16,000](https://mbiz.heraldcorp.com/article/10887375).

The picture is not the same in every sector. In manufacturing, indirectly employed workers [rose by 6,000 to 324,000](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent). In shipbuilding, in-house subcontracting accounted for [64.6% of the workforce](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent), which leaves two of every three workers on site employed by subcontractors. If you are applying to a shipyard, the job advert may come from a subcontractor rather than from the shipbuilder whose name is on the gate.

## Why Did Fixed-Term Jobs Grow Faster Than Open-Ended Ones?

Direct employment grew, but not evenly across contract types. Workers on open-ended contracts [increased by 41,000 to about 3.57 million](https://mbiz.heraldcorp.com/article/10887375), while fixed-term workers rose by 67,000. The rise in fixed-term workers was [more than 1.6 times](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent) the rise in open-ended ones.

That shifted the balance inside companies. Fixed-term workers now make up [28.3 percent of directly employed workers, up 0.7 percentage points](https://mbiz.heraldcorp.com/article/10887375), and the open-ended share fell by the same margin to 71.7 percent. A year earlier the fixed-term share was [27.6%](https://www.khan.co.kr/article/202609291420001/).

Part-time work grew too. Part-time workers rose by [27,000 to 450,000](https://mbiz.heraldcorp.com/article/10887375), taking their share of directly employed staff to [9.0 percent, up 0.4 percentage points](https://mbiz.heraldcorp.com/article/10887375). The two groups overlap, because [one category is defined by the length of the contract and the other by the hours worked](https://www.khan.co.kr/article/202609291420001/), so a person can be both fixed-term and part-time. Fixed-term and part-time workers are now at [their highest level since the disclosure system began](https://www.khan.co.kr/article/202609291420001/).

## Which Industries Drove the Change?

Health and welfare accounted for about half of the growth. The sector [added 44,000 workers](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent), roughly half of the total increase. Within it, [fixed-term workers rose by 29,000 and part-time workers by 20,000](https://mbiz.heraldcorp.com/article/10887375).

Those two figures carry a lot of weight in the national totals. The health and welfare rise accounts for [more than 40%](https://www.khan.co.kr/article/202609291420001/) of the whole increase in fixed-term workers, and for [74.1%](https://www.khan.co.kr/article/202609291420001/) of the increase in part-time workers.

The ministry points mainly to [an expansion of health, welfare and social service jobs](https://www.moel.go.kr/news/enews/report/enewsView.do?news_seq=20012) as the population ages. It also found cases at some companies of [workers who reached retirement age being rehired](https://www.moel.go.kr/news/enews/report/enewsView.do?news_seq=20012) as fixed-term or part-time staff. For people approaching retirement, the choice between staying on under new terms and looking elsewhere is familiar, and our piece on [retirees returning to work amid financial struggles](https://www.metaintro.com/blog/retirees-returning-to-work-financial-struggles) covers the same pressures from another angle.

> The ministry said the growth reflects an expansion of health, welfare and social service jobs driven by an aging population, as well as cases in which companies rehired mandatory retirees as fixed-term or part-time workers, according to [the Herald Business report](https://mbiz.heraldcorp.com/article/10887375).

## Is This a One-Year Blip or a Five-Year Trend?

It is a trend. Between 2021 and 2026, open-ended employees at companies with 300 or more workers [rose by 409,000 to 3.57 million from 3.161 million](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent), while fixed-term workers rose by 478,000 to 1.412 million from 934,000.

The shares moved steadily in one direction. The open-ended share of directly employed staff has fallen for five years in a row, to [71.7% this year from 77.2% in 2021](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent), while the fixed-term share climbed to 28.3% from 22.8%. The same five-year rise, from [22.8% to 28.3%](https://www.asiatoday.co.kr/kn/view.php?key=20260929010010202), appears in the Asia Today breakdown of the release.

Analysts point to two forces. One is the growing practice of [rehiring skilled workers on fixed-term contracts after they reach retirement age](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent). The other is [voluntary demand for such arrangements](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent).

## Who Is Most Likely to Be on a Fixed-Term Contract?

Women are more likely than men to be on one. Among women employed directly by these companies, the fixed-term share is [33.5%, against 24.9% for men](https://www.asiatoday.co.kr/kn/view.php?key=20260929010010202). For part-time work, the share is [15.1% for women and 5.0% for men](https://www.asiatoday.co.kr/kn/view.php?key=20260929010010202).

Industry matters too. A care worker or social service worker joining a large employer is entering the sector behind [roughly half of the total increase](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent) in workers this year. A worker who has reached retirement age may be offered rehiring on fixed-term or part-time terms, and the ministry found [such cases at some companies](https://www.moel.go.kr/news/enews/report/enewsView.do?news_seq=20012).

None of this means a fixed-term offer is a bad offer. It does mean the contract type should be one of the first questions you ask, not something you discover when the start date paperwork arrives.

## What Does the Two-Year Rule Say?

The core rule is short. The [Act on the Protection of Fixed-Term and Part-Time Employees](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40), in the English text published by the Korea Legislation Research Institute, lets an employer hire a fixed-term worker for a period not exceeding two years, and repeated renewals count towards the same limit. If an employer keeps a fixed-term worker beyond two years without a valid exception, the worker is [deemed to be on a non-fixed term contract](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40).

The exceptions are real, so check whether one applies to you. The statute allows longer fixed-term hiring where the period needed to [complete a project or particular task](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40) is specified, where a worker fills a vacancy left by a colleague's suspension from duty or dispatch, where the period a worker needs to finish their own schooling or vocational training is specified, and for some professional roles and government welfare or unemployment programmes. The law also exempts the hiring of older workers, among other cases, according to [the Asia Today summary of the law](https://www.asiatoday.co.kr/kn/view.php?key=20260929010010202).

There is also a softer duty. When an employer plans to hire someone on an open-ended contract, the Act requires it to [endeavor to preferentially hire fixed-term workers](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40) doing the same or similar work at that workplace. It is a duty to try, not a guarantee of conversion.

> Even for roles that could last four, five or even ten years, workers are hired for one year and 11 months, then let go briefly before being rehired under the same terms, President Lee Jae Myung said in April, according to [the Korea Herald's April report](https://www.koreaherald.com/article/10715244).

The rule has applied [since 2007](https://www.koreaherald.com/article/10715244), and data cited by the Korea Herald put the conversion rate to regular positions at [8.6 percent at the end of 2024](https://www.koreaherald.com/article/10715244). The state-run Korea Labor Institute said in April it was preparing a [fact-finding survey on fixed-term contracts](https://www.koreaherald.com/article/10715244), and the ministry now plans to draw up [reform measures based on a survey of fixed-term employment conditions](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent). For now, the two-year rule in the current Act is what applies.

## What Rights Do Fixed-Term Workers Have on Pay and Treatment?

Equal treatment is the headline protection. Article 8 of the Act bars employers from giving [discriminatory treatment to any fixed-term worker](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40) because of their employment status, compared with open-ended staff doing the same or similar work at the same workplace. The same protection [covers part-time workers](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40) compared with full-time staff. The statute's definition of discrimination names items such as regular bonuses, holiday bonuses and [performance based bonuses](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40).

There is a route to challenge it, but it has a deadline. A worker can ask the Labor Relations Commission to correct the treatment, but not once [six months have passed](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40) since it happened, or since it ended if it was continuous. In those disputes, the [burden of proof shall be upon employers](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40), not on the worker.

Retaliation is banned as well. Article 16 bars an employer from dismissing or otherwise treating a worker unfavourably for filing a correction request or [attending and making a statement](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40) at the commission.

The labour minister framed the release in the same terms. Minister Kim Young-hoon welcomed the rise in direct employment and pledged to ensure [workers are not subject to unreasonable discrimination based on their employment type](https://mbiz.heraldcorp.com/article/10887375).

## How Can You Check a Company Before You Accept an Offer?

The data behind the release is public, company by company. The ministry points readers to the [official disclosure site](https://www.moel.go.kr/news/enews/report/enewsView.do?news_seq=20012) for each firm's figures, and the site's public listing shows the [employment type data as of March 31, 2026](https://www.work.go.kr/gongsi/empReportInfo/retrieveGongsiList.do).

The search is practical. You can look a company up by name or business registration number, choose a disclosure year, and filter by industry, region and headcount band, from under 500 workers up to [10,000 or more](https://www.work.go.kr/gongsi/empReportInfo/retrieveGongsiList.do). The listing shows each firm's directly employed workers alongside the number employed by other companies on its sites.

Use it to ask better questions:

- **Compare years.** The listing offers [three disclosure years](https://www.work.go.kr/gongsi/empReportInfo/retrieveGongsiList.do), so you can see whether a firm's in-house workforce is growing or shrinking.
- **Look at the split.** A company whose sites are staffed mostly by other firms may hire you through a contractor, even if its own name is on the advert.
- **Ask about the contract before the interview ends.** Ask whether the role is fixed-term, how long the term is, and whether earlier hires in the same role moved to open-ended contracts.

## What This Means for Job Seekers, and What Should You Do Next?

Large Korean employers are employing more of their own staff, while the number of outside workers on their sites fell, [largely because of a drop of 16,000 in construction](https://mbiz.heraldcorp.com/article/10887375). But the growth in direct staff is tilted towards contracts with an end date, with the rise in fixed-term workers [more than 1.6 times](https://en.sedaily.com/society/2026/09/29/fixed-term-hires-at-large-korean-firms-outpace-permanent) the rise in open-ended workers this year.

Our view is that a fixed-term job at a large employer can still be a strong first step, especially in health and welfare, where [jobs are expanding as the population ages](https://www.moel.go.kr/news/enews/report/enewsView.do?news_seq=20012). The risk is drifting through repeated short contracts without ever reaching the two-year line. Treat the contract type as part of the pay.

Here is what we would do:

- **Check the employer first.** Look it up on the [public disclosure listing](https://www.work.go.kr/gongsi/empReportInfo/retrieveGongsiList.do) and compare its in-house and outside workforce.
- **Ask the length and the history.** Find out how long the term is, whether it can be renewed and how many people in the role have moved to open-ended contracts.
- **Count the months.** Keep your own record of start dates and renewals, because the [two-year limit](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40) counts repeated renewals together.
- **Compare your bonuses.** If open-ended colleagues doing the same work get bonuses you do not, and there is no justifiable reason for the difference, the Act lets you file a correction request within [six months](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40) of the treatment, or of its end if it is continuous.
- **Keep your search running.** A fixed-term role can sit alongside an active search, and if you are working reduced hours now, our guide on [moving from a part-time job to a full-time career](https://www.metaintro.com/blog/transition-from-part-time-job-to-full-time-career) sets out the steps.

## Related Articles

- [The Rise of the Permanent Temp and What It Costs American Workers](https://www.metaintro.com/blog/disposable-workforce-contingent-employment-costs)
- [Korean Giants Slash Hiring Plans](https://www.metaintro.com/blog/korean-companies-hiring-freeze)
- [How Seoul Job Seekers Are Training to Land Samsung and SK Hynix Chip Jobs](https://www.metaintro.com/blog/seoul-semiconductor-cram-schools-samsung-sk-hynix-jobs)
- [The Complete Guide to Part-Time Employment](https://www.metaintro.com/blog/part-time-employment)
- [New Guidelines for Subcontractor Hiring: Ensuring Transparency and Worker Rights](https://www.metaintro.com/blog/new-rules-hiring-subcontractors)
- [PhD Unemployment Crisis in South Korea](https://www.metaintro.com/blog/phd-unemployment-south-korea)
- [Hyundai Workers Walk Out Over Bonuses and Robot Job Fears](https://www.metaintro.com/blog/hyundai-workers-walk-out-bonuses-robot-job-fears)
- [Workers Choose Job Security Over Remote Work Amid Economic Uncertainty](https://www.metaintro.com/blog/job-security-vs-remote-work)

## People Also Asked

### Q: How long can a Korean employer keep someone on a fixed-term contract?

A: The general limit is [two years](https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=32289&type=part&key=40), including renewals, after which the worker is deemed to be on an open-ended contract unless an exception such as a specified project period applies.

### Q: What share of workers at big Korean companies are on fixed-term contracts?

A: Fixed-term workers make up [28.3 percent of directly employed workers](https://mbiz.heraldcorp.com/article/10887375) at companies with 300 or more workers, based on the 2026 disclosure.

### Q: Can I see how a specific Korean company employs its staff?

A: Yes. The [public disclosure listing](https://www.work.go.kr/gongsi/empReportInfo/retrieveGongsiList.do) lets you search by company name and shows its directly employed workers and those employed by other firms on its sites.

Stay ahead of the market. [Metaintro](https://www.metaintro.com) brings together 50M jobs in one place. [Create a free profile](https://www.metaintro.com/signup) and start your search today.

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