Under the revised enforcement ordinance, shipowners will have to pay a 10 percent penalty if they fail to pay wages to seafarers on time. (image: Yonhap)
SEOUL, Jan. 7 (Korea Bizwire) — Shipowners who owe overdue wages to seafarers will now be levied interest charges of 10 percent for the delay.
The Ministry of Oceans and Fisheries recently announced that the revised enforcement ordinance of the Seafarer Act passed the Cabinet meeting.
Under the revised enforcement ordinance, shipowners will have to pay a 10 percent penalty if they fail to pay wages to seafarers on time.
This provision, however, does not apply to companies that have declared bankruptcy or entered rehabilitation procedures.
The name, age, ship’s name and the amount of overdue wages regarding shipowners who frequently fail to pay wages will be disclosed on the ministry’s website for three years.
In addition, such shipowners will also have to submit overdue wage-related data if the Korea Credit Information Services asks them to do so.
This provision will be applied to the shipowners who fail to pay more than 30 million won (US$27,600) wages for one year before the disclosure of their personal information among those who were sentenced guilty for overdue wages more than two times in three years before the disclosure.
Lina Jang (linajang@koreabizwire.com)
