South Korean Labor Minister announces wage theft penalties and policy reforms

South Korean Minister of Employment and Labor Kim Young-hoon announced a series of labor policy updates during a report to the National Assembly. Starting in October, the government plans to increase the maximum legal penalty for unpaid wages to five years. To prevent ‘middle-man exploitation’ in the construction and shipbuilding industries, a ‘wage separation payment system’ will be introduced.

The Ministry also aims to intensify inspections of companies that have repeatedly experienced major industrial accidents over the last decade. Additionally, the government will focus on expanding customized job opportunities for youth and enhancing re-employment support for middle-aged workers.

Regarding the 52-hour work week, Minister Kim stated that no official decision has been made concerning potential exemptions for research positions in the Honam semiconductor mega-special zone. He emphasized that the government is seeking solutions to balance worker protection with corporate productivity. Furthermore, the Ministry is reviewing various methods, including enforcement decrees and regulations, to clarify the scope of labor disputes under the proposed labor union law amendments.