Unpaid Wages in Korea: Complete Guide for Foreign Workers – From Filing a Complaint to Resolution

Unpaid Wages (임금체불): What Should You Do?

If your payday has passed and your salary has not arrived, or if you have not received your final wages after leaving a job, this is a clear case of unpaid wages (임금체불). Article 36 of the Labor Standards Act (근로기준법 제36조) requires employers to pay a worker's wages within 14 days of the date of retirement. Violation of this rule can result in imprisonment of up to 3 years or a fine of up to 30 million won under Article 109 of the Labor Standards Act (근로기준법 제109조).

Note for foreign workers: Your employment contract may specify different payment dates or conditions, but the statutory 14-day rule sets the minimum legal standard.

Step 1: Gather Evidence First

Before filing a complaint, the most important thing is collecting evidence. Prepare the following materials in advance.

Even without a written contract, a complaint can still be filed if the fact of actual work can be proven.

Step 2: File a Complaint (진정) with the Ministry of Employment and Labor

Once you have gathered evidence, you can file a complaint (진정) with a regional office of the Ministry of Employment and Labor (고용노동부 지방관서). There are three ways to do this:

  1. Online: Visit the Ministry of Employment and Labor Civil Affairs Portal (minwon.moel.go.kr) → Select 'Unpaid Wages Complaint (임금체불 진정)'
  2. In person: Visit the Regional Employment and Labor Office (지방고용노동청) with jurisdiction over the workplace
  3. By mail: Complete a written complaint and mail it to the relevant office

Once the complaint is received, a labor inspector (근로감독관) will conduct a factual investigation and issue a corrective order to the employer. If the employer fails to comply, the case is referred to the prosecutor's office and criminal proceedings follow.

Step 3: Use the Wage Arrears Guarantee (체당금) System

If the employer has gone bankrupt or is unable to pay, you can use the Wage Arrears Guarantee (체당금) system. Under the Wage Claim Guarantee Act (임금채권보장법), the Korea Workers' Compensation and Welfare Service (근로복지공단) pays a portion of the unpaid wages on behalf of the employer.

The small-amount wage arrears guarantee must be applied for within 2 years of retirement and within 1 year of recognition of the insolvency, so it is important not to miss these deadlines.

Step 4: Civil Lawsuit or Payment Order

Separately from the criminal complaint, you can also recover wages directly through civil procedures (민사 절차). For small claims (30 million won or less), you can obtain an enforceable title relatively quickly by applying for a payment order (지급명령). It is also possible to subsequently apply for compulsory execution against the employer's assets.

You Can Also Claim Delay Interest

If wages are not paid within 14 days after retirement, the employer must additionally bear delay interest at an annual rate of 20% under Article 37 of the Labor Standards Act (근로기준법 제37조). In cases of unpaid wages during employment, the statutory civil interest rate applies unless the parties have agreed otherwise.

Get Started Quickly with Bylaw (바이로)

If you want to calculate exactly how much in unpaid wages you are owed, check your expected amount first with the Bylaw (바이로) salary calculator at workbylaw.com. You can also use Bylaw's AI complaint drafting assistant to easily prepare a draft complaint for submission to the Ministry of Employment and Labor. From organizing evidence to drafting complaint documents, Bylaw is here to help.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.