- Malicious and habitual wage defaulters will be dealt with more severely
According to the Ministry of Employment and Labor, as of April 2025, there were 504 cases of forced investigations—such as custoday investigations and execution of arrest warrants—for wage arrears, representing a significant 34.4% increase compared to the same period last year. This is a staggering 2.6 times higher number than that of April 2023 (193 cases).
First, active custody investigations have been carried out against employers who maliciously withheld wages from vulnerable groups including people with intellectual disabilities, foreign workers, and the youth.
On March 20 (Thursday), the Yangsan branch of the Ministry arrested an employer running a hospital clothes laundry business who opened a separate bank account (“fake deposit bank passbook”) under the name of a person with intellectual disabilities, exploiting their wages and failing to pay even the minimum wage on time.
On April 26 (Saturday), the Daejeon Local Employment and Labor Office arrested a convenience store owner who, running several convenience stores, repeatedly hired young, inexperienced workers for short periods and deliberately ceased contact—even with the capacity to pay wages—to habitually withhold wages.
On April 28 (Monday), the Mokpo branch uncovered the full extent of repeated physical abuse by a pig farm owner, which allegedly led to the death of a young Nepali man, and arrested the employer who had also withheld the man’s wages.
Meanwhile, in cases where employers, without good cause, ignored summons from the Ministry, arrests were executed with additional strict measures, prompting immediate wage settlement:
ㅇ Changwon branch: An employer in the window manufacturing and installation business failed to pay approximately \2.7 million for five workers and, ignoring a summons request, evaded contact with labor supervisors. After an arrest warrant was issued and the employer was apprehended on April 22, all overdue wages were paid in full.
ㅇ Ansan branch: A manufacturing employer withheld about \1.6 million in wages from one worker, ignored repeated summons, and was arrested—via both arrest warrant and telecommunications tracking—on April 14; full payment was made on April 30.
ㅇ Pohang branch: A private contractor building multi-family housing around the Pohang and Gyeongju areas withheld \1.5 million in wages owed to six construction workers for over eight months, but after being located and arrested on March 6, all overdue wages were paid immediately that same day.
ㅇ Gangnam (Seoul) branch: An employer running an accounting firm failed to pay approximately \1.7 million in retirement pay to one worker, denied the claims, and failed to comply with a summons, without any just cause. Upon execution of an arrest warrant and detention on January 21, the employer contacted the affected worker and settled the full amount the same day.
Furthermore, swift departure bans on foreign national employers at risk of fleeing abroad resulted in the full repayment of large sums of withheld wages. The Gangnam (Seoul) branch, on February 28, imposed a travel ban on an American-owned software development business whose owner had abruptly closed the business, left behind \580 million in unpaid wages owed to 50 workers, and was suspected of fleeing abroad. Approximately one month later, the employer settled the entire debts.
Min-seok Kim, Vice Minister of Employment and Labor, stated, “While we are doing our utmost with forced investigations to change the complacent attitudes of malicious and habitual wage defaulters, we have consistently strengthened the investigative capabilities of labor inspectors. Although wage arrears are difficult to resolve quickly due to intertwined economic and social factors, including stricter sanctions against defaulters set to take effect this October, we will continue various efforts to eradicate wage arrears.”