The Changwon Employment and Labor Office under the Ministry of Employment and Labor has launched an inspection and guidance initiative targeting a software company in Changwon that has delayed wage and severance payments amounting to several hundred million won.
According to the Changwon office, Yang Youngbong, Director of the Changwon Employment and Labor Office, visited software development and management company A in Changwon, Gyeongnam, and met directly with the company’s CEO to provide on-site guidance.
Company A, facing operational difficulties due to not receiving contract payments properly, failed to pay a total of 570 million won as of September, including wages for 16 current employees and severance pay for 20 former employees since April.
Director Yang met with the CEO of Company A to review matters related to liquidation and emphasized the need to promptly settle the overdue wages and prevent future recurrence of wage arrears.
In response, the CEO of Company A made a priority payment of 160 million won to the workers on September 22, immediately after the company’s bank account was unfrozen.
Subsequently, if 240 million won is paid through the government’s substitute payment system, a total of 400 million won in overdue payments will be settled.
The substitute payment system allows the government to pay a certain portion of overdue wages to workers on behalf of the employer and later recover the amount from the employer.
The remaining overdue amount of 170 million won is expected to be settled as soon as the business generates profit, following consultations between the CEO, the affected employees, and retirees.
Director Yang stated, “For workplaces that have delayed large wage payments to numerous workers, I will meet the employers on-site to guide the settlement process,” adding, “We will continue to actively strive to ensure the livelihood stability of workers.”
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