South Korea intensifies crackdown on unpaid wages ahead of Chuseok

South Korean authorities are intensifying efforts to address unpaid wages ahead of the Chuseok holiday. In Gyeonggi Province, the local government is conducting intensive consultations from September 14 to 23. To support workers, 120 ‘village labor attorneys’ have been appointed to assist with legal procedures, including filing complaints and applying for the ‘simplified substitute payment’ system, where the state pays a portion of unpaid wages on behalf of employers.

In Ulsan, the regional Employment and Labor Office is conducting a four-week comprehensive inspection of 132 high-risk workplaces in the manufacturing, construction, and food service sectors. This initiative aims to proactively identify hidden wage arrears before they are officially reported. Between January and July, Ulsan recorded 17.8 billion won in confirmed unpaid wages, contributing to a national total of over 1 trillion won during the same period.

Nationwide, the Ministry of Employment and Labor has expanded its inspection scope to approximately 8,000 workplaces. To mitigate financial hardship, the Korea Workers' Compensation & Welfare Service is offering low-interest loans for living expenses to affected workers and settlement costs to employers. Additionally, the processing time for substitute payments is being expedited to ensure workers receive funds before the holiday.