187 Business Owners Who Defaulted on Wages Named... Credit Sanctions and Travel Bans Expanded

The government has raised the level of sanctions by disclosing the names of business owners who habitually and egregiously fail to pay wages and imposing credit restrictions.

On April 27, the Ministry of Employment and Labor announced the public disclosure of the names of 187 business owners who have repeatedly defaulted on large amounts of wages, and the implementation of credit-related sanctions against 298 individuals.

This measure targets business owners who, as of August 31, 2022, have been convicted twice or more for wage delays within the previous three years, and whose outstanding wage amount exceeds 30 million won within one year (or 20 million won in the case of credit sanctions).

Kim Younghoon, Minister of Employment and Labor, attended the Labor Safety Ministerial Meeting held at the Government Seoul Complex in Jongno-gu, Seoul, on the 16th, and spoke about measures to improve the operation of subcontracting in the public sector. 2026.4.16 Photo by Jo Yongjun

For those subject to public disclosure, their names, ages, business names, addresses, and the amount of wages delayed over the past three years will be made public for the next three years on the Ministry of Employment and Labor's official website and other platforms. These individuals will also face various administrative disadvantages, such as restrictions on government subsidies, exclusion from bidding on government contracts, and limitations on recruitment postings.

For those subject to credit sanctions, their wage default information will be provided to the Korea Credit Information Services and they will be registered as subjects of credit management for up to seven years, which will also restrict their financial transactions.

Notably, under the newly amended Labor Standards Act, it has become possible to impose travel bans on business owners whose names are publicly disclosed, and if repeated wage defaults occur during the disclosure period, criminal punishment will be enforced regardless of the victim's intention to pursue prosecution.

Minister of Employment and Labor Kim Younghoon stated, "Wages are not only the reward for labor but also a means of living; habitual wage default is a serious violation that undermines the value of labor," adding, "We will eradicate the practice of tolerating wage arrears by strengthening the system."

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