The government will intensively monitor 8,000 businesses, including high-risk construction sites, that have repeatedly reported wage arrears ahead of Chuseok. If significant wage violations occur, local labor office heads will directly oversee the resolution.
The Ministry of Employment and Labor announced on August 31 that it will operate a 'Wage Arrears Intensive Settlement Guidance Period' from September 1 to 23.
Last year, the total amount of wage arrears reached 2.0679 trillion won, a 1.1% increase from the previous year. Affected workers numbered 262,304, with 90.2% of the arrears, amounting to 1.8644 trillion won, resolved. The total arrears have exceeded 2 trillion won for two consecutive years.
In response, the government will first conduct a comprehensive investigation and supervision of businesses with multiple wage arrears complaints and those in high-risk sectors like construction.
The number of businesses under supervision has increased by 2,000 from last year’s 6,000 to 8,000. The Labor Department plans to guide employers to ensure wage payments are made before Chuseok and will continuously monitor the settlement status. In cases where the arrears are substantial or involve many affected workers, or where disputes arise due to wage violations, the heads of local employment and labor offices will visit the sites directly.
For employers facing financial difficulties that may lead to wage arrears, the government will provide information on a loan program to encourage voluntary settlement. Conversely, employers who fail to pay wages despite having the means or who repeatedly violate wage laws will face strict measures, including criminal investigations.
The Labor Department has increased the loan limit for employers seeking to resolve wage arrears from 150 million won to 200 million won. Large employers with real estate collateral may receive special loans of up to 1 billion won.
Kim Young-hoon, Minister of Employment and Labor, stated, "We will ensure that the guidance and inspections for settling wage arrears before the holidays are not a one-time effort, and we will monitor more businesses than in previous years. Local office heads will personally visit sites to fully support the rights of workers affected by wage arrears."
* This article has been translated by AI.
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