280,000 Workers Affected by Wage Arrears Last Year
"Some Companies Deliberately Withhold Wages"
On the 10th, Jo Ji-yeon, a member of the People Power Party representing Gyeongsan City, Gyeongbuk, announced that she has taken the lead in proposing the 'Partial Amendment to the Commercial Act' aimed at eradicating wage arrears by companies. This amendment is a follow-up measure to the wage arrears hearing held by the National Assembly's Environment and Labor Committee in January.
According to data submitted to Representative Jo by the Ministry of Employment and Labor, the amount of wage arrears has been increasing over the past eight years. In 2023, the wage arrears amounted to 1.7845 trillion won, affecting 275,000 workers. The wage arrears recorded last year were 2.0448 trillion won, with 283,000 affected workers.
Despite having the capacity to pay the overdue wages, companies have habitually delayed payments while restructuring corporate governance and expanding ownership stakes by the owner family, raising the need for strengthened sanctions against such companies. In fact, as revealed in the National Assembly hearing, there were cases where companies secured funds through the sale of golf courses and office buildings but failed to repay the accumulated wage arrears, which reached 120 billion won.
Accordingly, Representative Jo has taken the lead in proposing an amendment that restricts mergers, new stock issuance, and stock listings for companies that fail to pay wages for a certain period despite having the capacity to repay the overdue wages.
Representative Jo stated, "Sanctions against companies that habitually and maliciously delay wage payments are necessary for the proper functioning of a fair market economy system," adding, "If the amendment passes the National Assembly, it is expected to help eradicate wage arrears that threaten the livelihoods of workers and their families."
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