South Korea Ministry of Employment and Labor to inspect 8,000 workplaces for unpaid wages

South Korea’s Ministry of Employment and Labor has announced a four-week intensive period from September 1 to September 23 to resolve unpaid wages ahead of the Chuseok holiday. The ministry will conduct inspections at 8,000 high-risk workplaces, including those with repeated reports of wage arrears and the construction sector, an increase of 2,000 sites compared to last year.

For serious cases involving large sums or many workers, regional labor office heads will personally visit sites to encourage settlement. The government maintains a zero-tolerance policy for malicious or habitual offenders, with a principle of conducting investigations under arrest.

To assist employers facing temporary financial difficulties, the ministry is promoting a loan system to help settle unpaid wages. Recent updates have increased the loan limit for employers to 200 million won, with up to 1 billion won available with collateral. Additionally, the scope of state-paid substitute wages for workers in cases of corporate bankruptcy has been expanded from the final three months of wages to six months, with the maximum payment rising from 21 million won to 31.5 million won.