Crossover Calculator
EOR vs entity in South Korea
Below a certain headcount, an Employer of Record is the cheaper way to employ in South Korea. Above it, your own entity wins. The calculator finds that crossover point for your real numbers, and shows the month your cumulative entity cost overtakes EOR.
When does it stop making sense to use an EOR in South Korea?
When your headcount in South Korea reaches the point where running your own legal entity costs less than staying on an Employer of Record. For a Tier 2 market, the planning threshold sits around 12 employees. Run the calculator below with your headcount and EOR fee to see your own crossover month.
What is Crossover point?
The point at which the cumulative cost of running your own legal entity in South Korea falls below the cumulative cost of staying on an Employer of Record. The calculator projects 36 months of both paths and reports the crossover as a month within that window. Below it, EOR is cheaper; above it, the entity is. In South Korea the planning threshold is around 12 employees. The exact figure depends on the entity's setup and ongoing overhead and the EOR fee you pay, not on salary: both paths are modelled per-employee, so the salary you pay is identical on each side.
Your situation
Pick a country and your headcount. The crossover model updates live below as you change anything.
🇰🇷 South Korea · Moderate to set up · Entity threshold ~12 employees
Extra hires on top of your current 10 in South Korea.
Working in the local language eases day-to-day compliance. Your team can read employment documents and engage authorities directly.
Pre-filled with the market average for South Korea. Update it if you know your actual rate.
Your EOR vs entity analysis
🇰🇷 South Korea
10 employees today · 15 planned in 12 months
Gwanghwamun
plan.
crossover at month 11
Verdict
Time to plan, not act.
At 10 in South Korea, you are approaching the crossover. Moderate setup means 4 to 6 months from go to running. Start mapping the move now, before the maths forces it.
Book a planning call3-year EOR cost
KRW 415.3M
3-year entity cost
KRW 300.5M
What you need to know about South Korea
Setup complexity
ModerateUnder the Graduation Model, Teamed recommends considering an entity from 12 employees in South Korea (a moderate market).
4–6 months to establish a legal entity.
Operating language: your team operates in South Korea's local language, which eases day-to-day compliance and direct engagement with authorities.
Key factors
- Tier 2 (moderate complexity): thresholds and timelines follow the Graduation Model.
- Operating language vs local language affects the concentration threshold.
- Model uses tier-typical setup and ongoing cost bands. Refine with local quotes before decisions.
Your transition readiness
Employee concentration
Have you reached or exceeded the 12-employee threshold for South Korea?
Within 20% of threshold. Worth a review at this point.
Long-term commitment
Are you planning a 3+ year presence in this market with stable or growing headcount?
Growing headcount supports amortising entity setup.
Economic viability
Over 3 years, do total EOR costs exceed entity setup plus ongoing entity costs in this model?
Three-year projection favours entity on cost.
Control requirements
Do you need direct control over local operations, IP protection, or customer contracts that require a local entity?
Only you can confirm. Entity enables direct contracts and bank accounts. EOR keeps the employment relationship with the provider.
Operational readiness
Do you have HR and legal resources (internal or outsourced) capable of managing local compliance?
Tier 2: plan for local payroll, accounting, and HR advisory. Typically 4–6 months to establish.
Next steps
The model above is a starting point. A 30-minute working session turns it into a board-ready plan with your real salary mix, benefits load, and statutory specifics.
Crossover facts: South Korea
- Crossover threshold
- Around 12 employees in South Korea. The exact number moves with your EOR fee and the entity's setup and ongoing overhead.Source: Teamed Graduation Model· verified 2026-05-20
- Entity formation timeline
- 4 to 6 months before payroll, banking, and local advisory are fully running.Source: Teamed jurisdiction operations· verified 2026-05-20
- Market complexity
- Tier 2 of 3 (Moderate).Source: Teamed Graduation Model· verified 2026-05-20
Planning an entity in South Korea?
Bring your headcount projection and current EOR invoices to a 30-minute working session. We will model the crossover line by line, factor in the statutory specifics this calculator cannot infer, and give you a written view you can take to the board.
Book a working sessionFrequently asked questions
At what headcount should we open our own entity in South Korea?
As a planning guide, around 12 employees in South Korea. The exact crossover depends on the EOR fee you pay, the one-time cost of forming the entity, the ongoing per-employee cost of running it, and how fast your headcount grows. Run the calculator above with your real numbers; it projects 36 months of both paths and shows the month your own entity becomes cheaper than continuing on EOR.How long does it take to set up a legal entity in South Korea?
Typically 4 to 6 months for a Tier 2 market like South Korea, covering incorporation, tax registration, a local bank account, and payroll setup. An Employer of Record keeps you compliant from week one, which is why the crossover decision is about cost, not speed. If you are racing a competing offer, EOR wins on tempo regardless of headcount.What costs decide the crossover in South Korea?
Four inputs: your EOR fee per employee, the one-time cost of setting up the entity, the ongoing per-employee cost of running it, and how fast your headcount grows. Salary is not one of them. Both paths are modelled from headcount and per-employee rates, so the salary you pay is identical on each side and drops out of the comparison. The calculator accumulates both paths over a 36-month window and shows the month your cumulative entity cost overtakes EOR.