Opening of 'Wage Claim Protection Account' for Workers with Wage Arrears

Kang Soon-hee, President of the Korea Workers' Compensation and Welfare Service. / Photo by Moon Ho-nam munonam@

[Sejong=Asia Economy Reporter Moon Chaeseok] The Korea Workers' Compensation and Welfare Service under the Ministry of Employment and Labor announced on the 7th that starting from the 9th, it will open accounts that protect wage claimants' severance pay from seizure. Severance pay refers to a system where the government pays a certain amount of wages on behalf of the employer when a worker does not receive their wages and then recovers the amount from the employer.

This measure by the Service aims to prevent situations where workers with unpaid wages cannot access their severance pay due to account seizures, and a legal basis was established by the amendment of the Wage Claim Guarantee Act in December last year.

Workers who wish to open a severance pay seizure protection account can apply at NongHyup Bank, Shinhan Bank, Woori Bank, Industrial Bank of Korea, etc., by bringing a severance pay notice issued by the local labor office.

From the 9th, the Service will also implement a living expense loan program for workers with unpaid wages. Workers currently employed at workplaces with unpaid wages or who have retired within the last six months and have not received at least one month's wages in the past year can apply for the loan.

Details about the severance pay seizure protection account and the living expense loan program can be found at the Korea Workers' Compensation and Welfare Service call center and the Work Welfare Net website.

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