Wage Arrears Decreased by 16% This Year... Intensive Guidance During the 4 Weeks Before Chuseok

Operation of Wage Arrears Intensive Guidance Period and Arrears Clearance Period
Focused Management of Illegal Subcontracting Construction Sites
Pre-Chuseok Wage Claims... Reduction of Loan Interest Rates for Workers' Living Expenses

[Sejong=Asia Economy Reporter Moon Chaeseok] It has been revealed that the amount of wage arrears this year decreased by 16% compared to the previous year. The government has decided to operate a concentrated guidance period for wage arrears for four weeks before Chuseok.

The Ministry of Employment and Labor announced on the 22nd that it will operate a four-week concentrated guidance period from the 23rd of this month to the 19th of next month to prevent and promptly resolve wage arrears.

According to the Ministry of Employment and Labor, the amount of arrears incurred until last month was 827.3 billion won, a 15.6% decrease compared to the same period last year. The settlement rate rose to 84.5% (settlement amount 699 billion won). Accordingly, the amount of arrears (unsettled amount) was 128.3 billion won, a 28.3% decrease compared to the previous year.

The Ministry plans to operate the concentrated guidance period before Chuseok to induce a reduction in arrears.

First, workplaces with high risks of wage arrears, such as those with overdue social insurance premiums and construction sites, will be selected for prior guidance. A 'Wage Arrears Settlement Task Force' will be organized at 48 local labor offices nationwide to immediately respond if collective wage arrears sit-ins occur at construction sites.

The Ministry will guide the direct subcontractors to settle arrears if illegal subcontracting in the construction industry is confirmed, and immediately notify the relevant local government. The local government will impose business suspension or fines according to the 'Framework Act on the Construction Industry.'

Additionally, to ensure that workers with wage arrears can receive wage claims before Chuseok, the processing period for small wage claims will be temporarily shortened from 14 days to 7 days from the 23rd of this month to the 17th of next month.

The interest rate on living expense loans of up to 10 million won per person (20 million won for workers in employment crisis areas and special employment support industries) will also be lowered by 0.5 percentage points from 1.5% per annum to 1% from the 23rd of this month to October 22nd.

For business owners who cannot pay wages due to temporary business difficulties, the loan interest rate will be reduced by 1 percentage point. Collateral interest rates will be adjusted from 2.2% to 1.2%, and credit/joint guarantees from 3.7% to 2.7%. The support limit per business owner will be increased from 70 million won to 100 million won, and from 6 million won to 10 million won per worker.

Minister Ahn Kyung-duk emphasized, "We will do our best to prevent wage arrears and support livelihood stability so that workers can spend the Chuseok holiday without worry," and added, "We will strictly enforce the law against intentional violations such as habitual wage arrears."

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