Wage theft penalty rises from 3 years to 5 — effective 8 October 2026 | fine also up to 50 million won
The penalty for unpaid wages goes up. From 8 October 2026, failure to pay wages, settle accounts, pay shutdown allowances or premium pay moves from up to 3 years' imprisonment and a 30 million won fine to up to 5 years and 50 million won, the same bracket as assault and forced labor.
Conditions used in the video
- Effective date
- 2026-10-08
- Promulgated
- 2026-04-07
- Basis
- Labor Standards Act Articles 107 and 109
- Current penalty
- up to 3 years / 30 million won
- New penalty
- up to 5 years / 50 million won
- Bar on prosecution
- kept (exception for named offenders)
Results
- Now · maximum imprisonment
- 3 years
- From 2026-10-08 · maximum imprisonment
- 5 years
- Now · maximum fine
- 30 million won
- From 2026-10-08 · maximum fine
- 50 million won
- Delay interest (14 days after leaving)
- 20% per year
At a glance
The offence moves from Article 109 (3 years) to Article 107 (5 years).
- Now · Article 1093 years
fine 30 million won
- From 2026-10-08 · Article 1075 years
fine 50 million won
Why it works this way
An employer who fails to pay wages currently falls under Article 109 of the Labor Standards Act: up to three years' imprisonment or a fine of up to 30 million won. Article 107 of the same Act covers forced labor (Article 7), assault (Article 8) and intermediary exploitation (Article 9) at up to five years or 50 million won, one bracket above wage theft.
Labor Standards Act Article 107(1) (effective 2026-10-08).
- Article 107 nowArticles 7, 8, 9, 23(2), 40 → 5 years / 50 million won
- Added from 2026-10-08Articles 36, 43, 44, 44-2, 46, 51-3, 52(2)2 and 56
- Left in Article 109Articles 65, 72 and 76-3(6) → 3 years / 30 million won
The provisions moving up are settlement of accounts, payment of wages, contractor joint liability, construction joint liability, shutdown allowance, compensatory leave, flexible-schedule settlement and premium pay.
Delay interest runs separately from the criminal penalty. If wages or severance are not paid to a departing worker within 14 days of leaving, interest of 20% per year accrues from the following day. This amendment does not change that.
Labor Standards Act Article 37 and Enforcement Decree Article 17 (20 per 100 per year).
- Date of leavingthe duty to settle accounts begins (Article 36)
- +14 daysif unpaid by this deadline
- From the next day20% per year in delay interest
Wages withheld while the worker is still employed do not carry this interest.
Prosecution against the worker's express wishes remains barred after the amendment. The exception is a named repeat offender: an employer on the published list who withholds wages again during the publication period.
This video and page describe a measure that has been promulgated but has not taken effect. Details may change through a decree or notice.
In short, from 8 October 2026 wage theft carries up to five years' imprisonment or a fine of up to 50 million won, and the 20% delay interest stays as it is.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
Labor Standards Act Article 107(1) (Penal provisions)
In force Effective 2026-10-08 (promulgated 2026-04-07; Addenda, "six months after promulgation")
A person who violates Article 7, 8, 9, 23(2), 36, 40, 43, 44, 44-2, 46, 51-3, 52(2)2 or 56 shall be punished by imprisonment for not more than five years or by a fine not exceeding 50 million won.
What this means
Articles 36 (settlement of accounts) through 56 (premium pay) are the newly added ones. Wage theft now carries the same statutory penalty as forced labor and assault.
Labor Standards Act Article 107(2) (Bar on prosecution)
In force Effective 2026-10-08
No public prosecution shall be instituted against the express will of the victim in respect of a violation of Article 36, 43, 44, 44-2, 46, 51-3, 52(2)2 or 56. Provided, that this shall not apply where an employer whose name has been published under Article 43-2 commits a violation during the publication period.
What this means
The penalty rises, but the structure under which a worker who does not want prosecution can block it is unchanged. The exception targets named habitual offenders.
Labor Standards Act Enforcement Decree Article 17 (Delay interest rate)
In force In force (amended 2025-04-08)
The rate prescribed by Presidential Decree under Article 37(1) of the Act shall be 20 per 100 per year.
What this means
Unaffected by this amendment. It is civil interest, separate from the criminal penalty.
Run it on your own numbers
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Open the Unpaid Wages & Late-Payment Interest
Frequently asked
Does the worker get more money?
No. What changes is the employer's statutory penalty. The wages owed and the 20% per year delay interest are unchanged.
Can a settlement avoid prosecution?
The bar on prosecution stays. If the worker does not want the employer prosecuted, no public prosecution can be brought. The exception is an employer on the published list who withholds wages again during the publication period.
Which violations move up to five years?
Settlement of accounts (Article 36), payment of wages (Article 43), contractor joint liability (Articles 44 and 44-2), shutdown allowance (Article 46), compensatory leave (Article 51-3), flexible-schedule settlement (Article 52(2)2) and premium pay (Article 56).
When does delay interest start?
Only for workers who have left. If wages or severance are unpaid 14 days after the date of leaving, 20% per year accrues from the following day. Wages withheld during employment do not carry it.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.