The Ministry for Gender Equality is offering cash to companies whose male employees pledge not to pay for sex after office parties.
Men are being urged to register on the ministry's website. The companies with most pledges will receive a reward.
Officials say they want to put an end to a culture in which men get drunk at parties and go on to buy sex.
But some critics have described the move as a waste of money.
Despite new anti-prostitution laws passed in 2004, the practice is said to be widespread in South Korea, with some estimates suggesting more than one million people work in the sex industry.
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