A recent pilot program bringing 100 Filipina domestic workers to South Korea faced criticism when two government-certified housekeeping service companies failed to pay the workers’ training allowances on time, citing liquidity issues. (Image courtesy of Yonhap)
SEOUL, Sept. 9 (Korea Bizwire) – As South Korea grapples with record-breaking levels of wage arrears this year, a new report has revealed that foreign workers have borne a disproportionate share of the burden, with unpaid wages totaling nearly 70 billion won in the first seven months of 2024.
According to data obtained from the Ministry of Employment and Labor by Kim Wi-sang, a lawmaker from the People Power Party, 14,913 foreign workers from 4,124 businesses did not received their rightful pay between January and July of this year.
The issue of wage arrears has reached unprecedented levels in South Korea, with the total amount of unpaid wages for both domestic and foreign workers surpassing 1.2 trillion won by July. This marks the first time that unpaid wages have exceeded 1 trillion won in a half-year period, with an additional 180 billion won accruing in July alone.
Foreign workers, who make up 3.2% of the total workforce in South Korea, account for 5.7% of the total unpaid wages and 8.5% of affected workers. This disparity suggests that foreign workers are more likely to experience wage theft than their South Korean counterparts.
The problem is not new. Over the past five years, foreign workers have consistently faced about 120 billion won in unpaid wages annually.
Small businesses are the primary culprits, with 90% of wage arrears for foreign workers occurring in companies with fewer than 30 employees. Manufacturing and construction sectors, which employ many foreign workers under the Employment Permit System (E-9 visa), are particularly problematic.
Even high-profile initiatives are not immune to controversy. A recent pilot program bringing 100 Filipina domestic workers to South Korea faced criticism when two government-certified housekeeping service companies failed to pay the workers’ training allowances on time, citing liquidity issues.
Kim Wi-sang emphasized the gravity of the situation, stating, “Wage arrears are a serious crime against people’s livelihoods that ruins workers’ lives. Foreign workers should be protected by the same standards as domestic workers.” He called for special measures targeting small manufacturing and construction businesses where wage theft is most prevalent.
M. H. Lee (mhlee@koreabizwire.com)
