A recent decision by the Seoul Administrative Court underscores an increasingly important issue in Korean employment law; when does a job offer become legally binding? In a case involving a Korean fintech company, the court ruled that rescinding a job offer only 4 minutes after notifying  the applicant of acceptance by text message constituted an unfair dismissal under Korean law. The employer had informed the candidate that employment would begin the following Monday, only to revoke the offer moments later without any explanation. The court held that an employment relationship was formed once the company communicated acceptance.

This case  highlights the legal distinction between  recruitment processes and an established employment contract. The company argued that no employment agreement had been formed and that it employed fewer than five regular workers, seeking exemption from sections of the Korean Labor Standards Act. However, the court examined operational realities—including shared office space and overlapping personnel with affiliated entities—and determined that the company effectively exceeded the employee threshold, making certain Labor Standards Act provisions effective.

The court also emphasized compliance with Article 27 of Korea’s Labor Standards Act, which generally requires employers to provide written notice of dismissal specifying both the reason and timing of termination. According to the ruling, once a candidate receives a hiring notification, an employer may not unilaterally retract the offer without satisfying legal dismissal requirements.

For employers, HR professionals, and foreign-invested businesses navigating Korean labor law, experienced legal guidance is essential when managing recruitment disputes, employment contracts, and dismissal-related risks. Firms seeking Korean Bar-certified counsel with cross-border employment expertise can seek expert guidance from the professionals at InterLEX. For any question prior to or after extending an employment offer, please contact us.