[Exclusive] Gwak Sang-do's Son Received 5 Billion Won... Nearly 50,000 Labor Ministry Reports on Unpaid Severance Pay

Controversy Over 5 Billion Won
Delayed or Withheld Severance Pay
Ongoing Wage Arrears... Expert
"Retirement Pensions Must Become Universal"

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] Amid the controversy over the 5 billion KRW retirement allowance special favor for Assemblyman Kwak Sang-do's son expanding into a 'dad chance' scandal, it has been confirmed that nearly 50,000 cases of workers reporting unpaid retirement allowances to the Ministry of Employment and Labor have occurred this year due to companies not paying retirement allowances on time.

Delays or outright withholding of retirement allowance payments remain prevalent in the workplace, and experts have pointed out the need for institutional improvements through the universalization of 'retirement pensions.'

According to data received on the 6th from the Ministry of Employment and Labor by Assemblyman Kang Deuk-gu of the Democratic Party of Korea, a total of 48,549 reports of unpaid retirement allowances were filed with the ministry from January to August this year. Monthly breakdowns show 6,214 cases in January, 5,503 in February, 6,770 in March, 6,392 in April, 5,990 in May, 6,307 in June, 5,828 in July, and 5,545 in August. Since this data is from a single agency, the Ministry of Employment and Labor, the actual number of unpaid retirement allowance cases in the field is estimated to be higher. Many victims of unpaid retirement allowances do not file complaints with the ministry but instead directly seek labor attorneys.

(Source: Office of Kang Deuk-gu, Democratic Party of Korea, Ministry of Employment and Labor)

Looking at the data by year, there were 88,250 cases in 2018, 91,654 cases in 2019, and 87,063 cases in 2020. Park Ji-soon, Dean of the Graduate School of Labor Studies at Korea University, said in a phone interview with this publication, "It is necessary to implement multifaceted institutional improvements to prevent unpaid retirement allowances by requiring not only large corporations but also smaller companies to enroll in retirement pension plans."

Professor Park Sang-byeong of Inha University said, "The issue of wage labor polarization among young people, including unpaid retirement allowances, remains widespread, and the controversy over Assemblyman Kwak Sang-do's son's 5 billion KRW retirement allowance is causing public outrage among the youth," adding, "The political sphere will likely see renewed importance placed on related institutional reforms and the theme of 'fairness' raised during the LH scandal."

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