South Korea names 187 habitual wage violators, imposes credit curbs on 298

Government Complex Sejong, Building 11, home to South Korea’s Ministry of Employment and Labor, in Sejong City. Oct. 13, 2023. [Photo by Yoo Dae-gil, dbeorlf123@ajunews.com]

The Ministry of Employment and Labor said on 27일 it will publicly disclose the names of 187 employers found to have repeatedly withheld large amounts of wages and will impose credit sanctions on 298 employers.

The employers named are classified as high-amount, habitual wage violators: as of Aug. 31, 2022, they had at least two final guilty verdicts for wage arrears within the previous three years and owed a total of at least 30 million won in unpaid wages within a one-year period. Credit sanctions apply to employers with total arrears of at least 20 million won.

In one case, an employer identified as A, who ran a travel business in Gumi and regularly employed about 10 workers, failed over three years to pay about 120 million won in wages and severance to nine workers. The employer received two guilty verdicts, including a sentence of 1 year and 4 months in prison, suspended for three years.

In another case, an employer identified as B, who operated a construction business in Cheonan, did not pay about 210 million won in wages to 88 workers over three years and received four guilty verdicts, including a two-year prison sentence. The ministry said the names of such high-amount, habitual violators will be posted on its website and other outlets.

For those subject to public disclosure, information including name, age, business name and address, and the amount of unpaid wages over three years will be made public from 27일 through April 26, 2029. For corporations, the disclosure will include the representative director’s name, age and address, along with the corporate name and address. The employers will face disadvantages including limits on government subsidies, restrictions on competitive bidding under the National Contract Act, and limits on recruiting under the Employment Security Act.

For employers subject to credit sanctions, personal details and arrears data will be provided to the Korea Credit Information Services, a centralized credit information agency. Under the agency’s rules, they will be listed for seven years as credit management targets and may face restrictions such as limits on loans.

The ministry said employers newly placed on the public disclosure list will also be subject to travel bans under the amended Labor Standards Act that took effect last year. If they again fail to pay wages during the three-year disclosure period, the law’s provision requiring a victim’s wish not to punish will not apply, making them subject to criminal punishment regardless of the affected workers’ intent.

Vice Minister Kwon Chang-jun said workers’ wages are compensation for labor and a means of livelihood, and that habitual, high-amount wage arrears are not a simple debt default but a serious illegal act that undermines the value of work. He said the ministry will ensure strengthened measures, including higher statutory penalties, are implemented to uproot the practice of treating wage arrears lightly.

* This article has been translated by AI.

Kim SeongSeo