Ministry of Employment Announces Labor Inspection Results for 150 Small and Medium Financial Institutions
591 Violations of Labor Laws Detected in 146 Institutions
"Lack of Interest in HR and Labor Issues...Guidance on Establishing Attendance Management Systems"
#. ○○Nonghyup did not pay approximately 410 million KRW in overtime wages despite employees arriving 30 minutes earlier than their scheduled working hours to prepare for business operations.
#. △△Saemaeul Geumgo failed to pay about 7 million KRW in underpaid minimum wages to newly hired employees, resulting in wage arrears.
It has been revealed that so-called "free labor" is widespread in small and medium-sized financial institutions such as Saemaeul Geumgo and Nonghyup. Not only were annual leave and holiday allowances unpaid, but there were also cases where allowances were not paid for training and event hours. Among the 150 workplaces inspected, most (146) were found to have violated labor laws.
The Ministry of Employment and Labor conducted labor inspections on small and medium-sized financial institutions from last month to early this month and announced the results on the 28th. Small and medium-sized financial institutions refer to financial institutions established and operated based on separate laws, such as Saemaeul Geumgo, regional Nonghyup, Suhyup, and Shinhyup.
This labor inspection targeted 150 small and medium-sized financial institutions with weak personnel and labor management, including those reported for labor law violations within the last three years. Specifically, 40 Saemaeul Geumgo branches, 65 Nonghyup branches, 15 Suhyup branches, and 30 Shinhyup branches were included.
The inspection revealed a total of 591 labor law violations across 146 small and medium-sized financial institutions. In particular, non-payment of overtime, holiday work allowances, and annual leave allowances were the most frequently detected violations. The resulting unpaid wages amounted to 4 billion KRW. Basic labor order violations such as failure to provide written notice of working conditions and failure to report employment rules were also confirmed.
First, among the 102 small and medium-sized financial institutions subject to inspection, it was confirmed that free labor was widespread due to failure to properly pay overtime and holiday allowances.
It was common for employees to arrive earlier and leave later than their originally scheduled working hours to prepare for and close business operations around opening and closing times. There were also cases where allowances were not paid for mandatory training and event hours attended after working hours.
Most small and medium-sized financial institutions lacked systems to manage working hours such as clock-in and clock-out times, highlighting the urgent need for systematic management of working hours.
Regarding basic labor order, many violations such as non-payment of annual leave allowances, failure to report employment rules, and discrimination against non-regular workers were detected in 146 small and medium-sized financial institutions.
An official from the Ministry of Employment and Labor explained, "The widespread violations of basic labor order in small and medium-sized financial institutions are mainly due to the lack of employer interest in personnel and labor management and the low understanding of labor laws by those in charge."
Additionally, the need to improve unreasonable organizational cultures was identified.
A survey of 30 small and medium-sized financial institutions with potential workplace harassment found that in 11 institutions, more than 50% of respondents reported experiencing workplace harassment at least once in the past six months.
The Ministry of Employment and Labor plans to take administrative actions such as issuing correction orders and imposing fines for labor law violations found during the inspections.
An official from the Ministry stated, "To prevent free labor, we plan to guide institutions to establish systematic clock-in and clock-out management systems and recommend measures to improve unreasonable organizational cultures."
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