Compliance
Navigating Simplified Payroll Reporting Changes: What Employers Need to Know in South Korea
Recent changes to 간이지급명세서 reporting rules bring temporary relief and new obligations for employers—detailed guidance to stay compliant.
By NomadicTax Research Team • 5-8 min read • August 23, 2026
## Overview of the 새로운 간이지급명세서(근로소득) 개정사항
Starting January 1, 2027, South Korea is introducing revisions to the reporting of **simple payout statements for wage income (간이지급명세서)**. Key changes include adjustments to penalties for late or missing filings and altered submission frequencies.([d.nts.go.kr](https://d.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=239032&mi=40678&utm_source=openai))
## What’s Changing
| Issue | Old Rule | New Rule (From 2027-01-01) |
|---|---|---|
| Penalty for failing to submit 간이지급명세서 | Penalties applied immediately when not submitted by the due date | **0.25% penalty waived** if documents are submitted by the due date during the **temporary relief period** *(2027-01-01 ~ 2027-12-31; for small businesses, relief extends to 2028-12-31)* ([d.nts.go.kr](https://d.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=239032&mi=40678&utm_source=openai)) |
| Frequency of submission | Every half year (every 6 months) | **Monthly reporting** requirement introduced ([d.nts.go.kr](https://d.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=239032&mi=40678&utm_source=openai)) |
| Partial underreporting exception | Penalty applied regardless of extent | Penalty waived if underreported or ambiguous amounts are **within 5%** of total payments ([d.nts.go.kr](https://d.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=239032&mi=40678&utm_source=openai)) |
## Who Is Affected
- **Employers paying salary to full-time (상용) workers** in Korea. Temporary wage earners or part-time/day laborers may be subject to different rules.
- **Small businesses** with 20 or fewer full-time workers benefit from extended relief up to end of 2028. Larger employers must fully comply with the revised regime starting 2027.([d.nts.go.kr](https://d.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=239032&mi=40678&utm_source=openai))
## Practical Compliance Tips
1. **Assess eligibility**: Determine whether your business qualifies as a small business under the new regime.
2. **Reconfigure payroll cycles**: Move from semi-annual to monthly reporting to avoid penalties.
3. **Ensure timely filing**: Submit reports by the old half-yearly deadlines for relief during the transitional period.
4. **Audit payment records**: Verify amounts for accuracy; if underreporting is <5%, penalties may be waived.
5. **Train payroll staff**: Update internal process manuals or systems to reflect submission frequency and penalty thresholds.
## Example:
An employer with 15 full-time employees submits their wage payout statement for June 2027 on July 28 (deadline was end of July). Since they have ≤20 employees, they’re eligible for the temporary relief. As long as the content is submitted by the original timeline and underreported figures are under 5%, **no penalty** applies. But from Jan 2028, they must submit on a monthly basis and abide by the new timeline.
## Bigger Picture & Why It Matters
These changes show South Korea’s push toward **modernising reporting requirements**, reducing burden on smaller employers, and increasing transparency. It aligns with global digital reporting trends and improvements in taxpayer-friendly administration.
By proactively preparing—updating payroll policies, investing in systems, and training staff—employers can minimize risk and optimize operations under the revised regulation.