Home › Working and studying in Korea at a glance
Unpaid wages in Korea: the 14-day rule, 20% delay interest, how to file a labour office complaint and substitute payment
Numbers checked against the official source on 2026-10-19
In Korea an employer must pay all wages and other money owed within 14 days after you leave (Labor Standards Act Article 36), unless both sides agree to a later date for special circumstances. Late payment carries delay interest at 20% a year from the next day until paid (Article 37 and Enforcement Decree Article 17). To report non-payment, file a wage-arrears complaint (진정) on the Ministry of Employment and Labor's Labor Portal or visit the labour office for the workplace's area; the inspector's processing period is 25 days (Saturdays and holidays not counted), extendable twice. If the employer cannot or will not pay, the government can pay on its behalf through substitute payment (대지급금) from K-COMWEL, subject to conditions and time limits below. The law has no nationality condition.
Law text read on 2026-10-19 from the National Law Information Center: Labor Standards Act "[시행 2026. 10. 8.] [법률 제21533호]"; its Enforcement Decree "[시행 2025. 10. 23.]"; Wage Claim Guarantee Act (임금채권보장법) "[시행 2026. 8. 20.] [법률 제21376호, 2026. 2. 19.]"; its Decree "[시행 2026. 5. 12.]". Article 37 of the Labor Standards Act was last revised in 2024 and Article 36 in 2020, both before the effective date shown. The Labor Portal pages were read in the built-in browser. Not legal advice; confirm with the labour office (1350).
Step 1: the deadline and the interest
- 14 days. Article 36: when a worker dies or leaves, the employer must pay wages, compensation and all other money within 14 days from the day the reason for payment arose. Both sides may agree to extend the date for special circumstances.
- Delay interest. Article 37(1): for unpaid wages due under Article 36 (and lump-sum retirement benefits), interest runs from the day after the 14th day until the day of payment, on the number of days late, at a rate set by decree. The Act's ceiling is 40% a year; Decree Article 17 sets the rate at 20% a year.
- Exceptions. Interest does not run while the employer is delayed by a natural disaster or the other reasons in Decree Article 18, including insolvency cases, legal limits on funds, or a case where it is appropriate to contest at a court or the labour commission whether the money is owed.
- Priority claim. Article 38: wages and accident compensation outrank most other debts, and the last 3 months of wages and the compensation outrank even secured debts.
Interest calculator
Enter the unpaid amount, your last day and the day it was (or will be) paid. The tool counts days from the day after the due date (last day + 14 days) to the payment day, and uses 20% a year. The law gives an annual rate and "days of delay"; it does not state how to convert to days, so the tool assumes a 365-day year. The amount actually owed is decided by the labour office or a court.
Not covered: the exceptions in Decree Article 18, whether the money counts as wages or retirement benefit, and the day count basis.
Step 2: report it to the labour office
- Choose a complaint (진정) or a criminal complaint (고소). The Labor Portal says a worker who has not been paid can ask the ministry to get the money paid (진정) or ask for the employer to be punished under the Labor Standards Act (고소).
- File. Online on the Labor Portal (labor.moel.go.kr): civil complaints, labour standards category, "진정서 (임금체불, 기타 근로기준 분야)". Or visit the customer support office of the labour office for the workplace's area for advice first, then file.
- Investigation. The labour inspector asks both sides to attend and investigates. Processing period: 25 days excluding Saturdays and holidays, extendable twice (first by the inspector, then with the complainant's consent). If the complainant fails to attend twice or more, the case is treated as closed (you may file again).
- Order and prosecution. If non-payment is confirmed, the employer is ordered to correct it and the case closes when it is paid. If the order is ignored, a criminal case is opened and sent to the prosecutor. The portal says an employer who withholds wages faces up to 3 years in prison or a fine of up to KRW 30 million.
- Help line. Ministry customer centre 1350 (paid call, weekdays 09:00 to 18:00), per the portal.
The portal also lists: substitute payment from K-COMWEL for unpaid wages, a living-cost loan for workers who were not paid (including workers who have left), and free legal aid by the Korea Legal Aid Corporation for civil suits about wages and retirement pay.
Step 3: substitute payment (대지급금)
Under the Wage Claim Guarantee Act (Article 7) the Minister of Employment and Labor, through K-COMWEL, pays unpaid wages for a worker who has left, in place of the employer, and later recovers the money from the employer. It applies to businesses covered by the industrial accident insurance (Article 3).
| Insolvency route (general) | Simple route | |
|---|---|---|
| When | The employer is in rehabilitation or bankruptcy proceedings, or the Minister recognises it cannot pay | A final court judgment, payment order, settlement or mediation orders the employer to pay, or the Minister has issued a "wage arrears and employer confirmation" document after a complaint |
| What is covered | Last 6 months of wages, last 3 years of retirement benefit, plus suspension allowance and maternity-leave pay (each last 6 months) | Last 3 months of wages (the Labor Standards Act Article 38(2) item 1 amount), last 3 years of retirement benefit, suspension allowance and maternity-leave pay (each last 3 months) |
| Who | Left within 3 years of the date one year before the bankruptcy or recognition application | Left; for the judgment route you started the suit within 2 years after leaving; for the confirmation route you filed the complaint within 1 year after leaving |
| Time to claim | Within 2 years of the bankruptcy order or recognition | Within 1 year of the judgment, or within 6 months from the first issue of the confirmation document |
| Employer condition | Employer ran the business under the Act for at least 6 months before the insolvency event | Employer ran the business under the Act for at least 6 months up to the day you left |
The Act (Article 7(2)) lets the decree set caps by the worker's age at leaving, and the Minister announces the caps. The Labor Portal shows a cap table for filings from 2020-01-01; we did not verify whether newer caps apply, so we show no cap figures. Employees still at the business have their own limited version (Article 7-2). The Act also lets the worker get help from a certified labour attorney for a claim at small workplaces, as set by ordinance.
Where the sources differ
| Item | Wage Claim Guarantee Act (in force 2026-08-20) | Easy Law English page | What we show |
|---|---|---|---|
| Insolvency route: wages covered | Last 6 months (Article 7(2) item 1) | Wages for the final three months, retirement benefit for the final three years, suspension allowance for the final three months | The dated law is the headline; the Easy Law figure is the older 3-month rule that still applies to the simple route. |
| Penalty for non-payment | Portal: up to 3 years or KRW 30 million | Not stated on that page | Portal figure. |
Related: minimum wage 2026, severance pay calculator and dismissal notice. This is a summary, not legal advice.
Checked 2026-10-19.
Official sources
- National Law Information Center — Labor Standards Act, Articles 36, 37, 38 — 14-day payment; delay interest; priority of the last 3 months of wages; in force 2026-10-08 (checked 2026-10-19)
- National Law Information Center — Enforcement Decree of the Labor Standards Act (full text, in force 2025-10-23) — Article 17: 20% a year; Article 18: exceptions (checked 2026-10-19)
- National Law Information Center — Wage Claim Guarantee Act (full text, in force 2026-08-20) — Articles 3, 7, 7-2, 12: substitute payment routes and scope (checked 2026-10-19)
- National Law Information Center — Enforcement Decree of the Wage Claim Guarantee Act (full text, in force 2026-05-12) — Articles 6 to 9: caps notice, eligible workers and employers, claim deadlines (checked 2026-10-19)
- Ministry of Employment and Labor Labor Portal — How to resolve unpaid wages (tabs: complaint, support, insolvency) — how to file a complaint, 25-day processing, penalty, support schemes; JS tabs read in the built-in browser; no date printed (read on 2026-10-19) (checked 2026-10-19)
- Easy to Find, Practical Law — Foreign workers' employment: protection under labor laws — English summary of the wage claim guarantee scheme; no revision date printed (read on 2026-10-19) (checked 2026-10-19)
Prices change. If an official page shows a different number from this page, the official page wins — and please tell us so we can fix it.