If Seafarers' Wages Are Not Paid on Time, an Additional 20% Annual Interest Must Be Paid... Shipowners' Names to Be Disclosed if Wages Are Delayed More Than Twice Within 3 Years

Amendment to the Enforcement Decree of the Seafarers Act Passed at the Cabinet Meeting

[Sejong=Asia Economy Reporter Joo Sang-don] From now on, if seafarers' wages are not paid on time, a late interest of 20% per annum must be paid additionally.

The Ministry of Oceans and Fisheries announced that the amendment to the "Seafarers Act Enforcement Decree" containing this provision passed the Cabinet meeting review on the 5th. This amendment will take effect from the 19th of next month.

To establish institutional measures to resolve the issue of delayed seafarers' wages, the Ministry of Oceans and Fisheries amended the "Seafarers Act" on February 18 last year to impose late interest on unpaid wages. This time, based on that, the enforcement decree has been revised.

The amendment to the enforcement decree sets the late interest on unpaid wages at 20% per annum. If wages are not paid within 14 days from the payday, starting from the 15th day, an additional 20% annual interest must be paid to the seafarer. However, exceptions apply if the shipowner has decided to commence rehabilitation procedures or has been declared bankrupt.

Criteria have also been established to disclose the list of shipowners who habitually delay wage payments. Shipowners subject to disclosure are those who have been convicted of wage delays two or more times within the past three years and whose total delayed wages within one year prior to disclosure amount to 30 million KRW or more. After review by the Wage Delay Information Deliberation Committee, the names, ages, ship names, and delayed wage amounts over three years will be disclosed on the Ministry of Oceans and Fisheries website for three years. However, shipowners who have died or who have paid all delayed wages during the explanation period (at least three months) are excluded from disclosure.

Additionally, when comprehensive credit information agencies request delayed wage data, the data will be provided, except in cases where the shipowner has died or has paid all delayed wages before the data provision date.

Kim Jun-seok, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, said, "This amendment to the Seafarers Act Enforcement Decree views seafarers' wages not merely as claims but as means to sustain their basic livelihood, aiming to strongly protect seafarers' lives. Based on this amended law, we will continue to actively and persistently manage and resolve wage delay issues for seafarers."

This content was produced with the assistance of AI translation services.