One Labor Inspector Handles 200 Cases... Mounting Workload Weakens Oversight [Wage Arrears Tracker] ④

Fewer Labor Inspectors Than ILO Standard
Oversight Weakened as Workload Mounts
Surge in Wage Arrears and Workplace Bullying Cases

Editor's NoteThe total amount of unpaid wages in South Korea surpassed 2 trillion won for the first time last year, and as of April this year, it is approaching 800 billion won, on track to reach an all-time high. While some of this may be attributed to the economic downturn, it is difficult to understand why the amount of unpaid wages in South Korea is more than 20 times that of Japan, which has twice the labor force. We investigated the reasons why South Korea has become a country where wage arrears are so prevalent and easily occur.

When wage arrears occur, workers submit a wage arrears complaint form to the local labor office that has jurisdiction over the area where their company is located. Once the complaint is received, the labor office in charge appoints a labor inspector immediately after receiving the case to investigate the facts within 25 days. If wage arrears are confirmed, the business owner is instructed to make the payment. Depending on the case, the labor inspector can extend the investigation period up to a maximum of 75 days. The photo shows the complaint submission window inside the Seoul Employment and Labor Office on the 18th. Photo by Park Hyunju

The absolute shortage of labor inspectors is cited as one of the main reasons why the problem of unpaid wages in South Korea remains unresolved. While the number of wage arrears cases increases exponentially every year, the number of labor inspectors available to address these issues is actually decreasing. In South Korea, each labor inspector handles nearly 200 cases per year, creating an environment where unscrupulous employers can easily evade oversight and intentionally withhold wages.

About 2,200 Labor Inspectors for 400,000 Cases... Severely Insufficient

Labor inspectors in South Korea are largely divided into those who handle the Labor Standards Act and those who focus on industrial safety and health. As of last year, there were 2,236 general labor inspectors responsible for wage arrears issues. The number of labor inspectors increased from 2,290 in 2020 to 2,307 the following year, but has since declined for three consecutive years.

Given that the economically active population, which refers to wage earners among the employed, was 29.39 million last year, there are only 0.76 labor inspectors per 10,000 workers. This falls short of the International Labour Organization (ILO) recommendation of at least 1.0 labor inspector per 10,000 workers.

According to ILO statistics released in April last year, the number of labor inspectors per 10,000 workers in 78 major countries was as follows: Germany (1.41), Finland (1.40), Switzerland (1.33), Norway (1.21), and Spain (1.07). The ILO stated, "The average number of labor inspectors per 10,000 workers is 0.84 in high-income countries and 0.47 in low-income countries." High-income countries are defined as those with a gross national income (GNI) per capita of at least $14,000. Last year, South Korea's GNI per capita was $36,624.

The workload for the roughly 2,200 labor inspectors continues to grow. Last year, local labor offices received 429,663 reports of labor law violations, an increase of nearly 30,000 from 400,800 cases the previous year. This means each labor inspector handled about 192 cases annually. Of these, wage arrears alone accounted for 194,915 cases last year, or about 87 cases per inspector.

According to the Labor Inspector Duties Regulations, labor inspectors are responsible for handling reports under 19 different laws, including the Labor Standards Act, Minimum Wage Act, Act on Gender Equality in Employment, Wage Claim Guarantee Act, Trade Union and Labor Relations Adjustment Act, Workers' Welfare Act, and the Workplace Bullying Prevention Act. Recently, the surge in workplace bullying reports, in addition to wage arrears, has made the work of labor inspectors even more complex. The number of workplace bullying reports more than doubled from 5,823 in 2020, the year after the law was enacted in 2019, to 12,253 last year.

Rising Calls for Establishment of a Labor Inspectorate... "Labor Oversight Functions Must Be Independent"

Yonhap News

There is a growing call to separate the Ministry of Employment and Labor and establish a Labor Inspectorate with expertise in labor inspection, in order to strengthen the monitoring functions of labor inspectors. Related legislation has already been proposed, mainly by the Democratic Party of Korea.

In January, 22 Democratic Party lawmakers, including Park Hongbae, introduced a government organization law amendment that includes the establishment of a Labor Inspectorate. The argument is that having a specialized agency for labor inspection, separate from the Ministry of Employment and Labor, which currently oversees employment, labor, and labor inspection, would reduce blind spots. If the bill passes, the Labor Inspectorate is expected to be established in 2026.

According to the National Assembly Bill Information System, the National Assembly Budget Office estimates that the operating cost of the Labor Inspectorate will amount to 133.5 billion won over five years from 2026 to 2030. This means an additional annual budget of about 27 billion won. Experts point out that, even with the additional budget, an independent agency is needed to focus more intensively on the rapidly increasing wage arrears cases.

Kim Sunghee, professor at Korea University Graduate School of Labor Studies, said, "Labor inspectors are currently so overwhelmed by wage arrears cases alone that they can hardly do anything else. If a specialized and independent body is created to handle wage arrears, unfair labor practices, and labor law violations, it could serve as a turning point for resolving these issues and allow for more focused discussion on institutional improvements."