Workplace Injury Compensation
UIJEONGBU, South Korea, Sept. 19 (Korea Bizwire) – Migrant workers in South Korea without bank accounts will now be able to receive workplace injury compensation in cash, following a policy shift by the Ministry of Employment and Labor.
The ministry adopted the change earlier this month after a recommendation from Gyeonggi Province, officials said Thursday. Under the revised guidelines, compensation payments may be made in cash when recipients are unable to open a bank account.
While the Industrial Accident Compensation Insurance Act already contained a provision allowing cash payouts in cases where bank transfers are not possible, the Korea Workers’ Compensation and Welfare Service had long refused such requests, citing the absence of ministry-level instructions.
The lack of clarity left some migrants in limbo. One worker from Africa, identified only as A, was recognized for an industrial accident last year after injuring his foot at a factory in Ansan. Yet he was unable to receive more than 4 million won (US$2,900) in compensation because he did not have a bank account under his name.
That case prompted the Gyeonggi Immigration and Integration Support Center to call for reform through its Diversity Communication and Coordination Committee, a body that addresses institutional blind spots affecting immigrants. The ministry accepted the proposal, and A became the first worker to receive compensation in cash under the new guidelines.
“It is late, but fortunate that a framework for cash payments has been established,” said Choi Jeong-kyu, head of the committee. “We must continue to address systemic gaps that affect migrants on the ground.”
The committee, which includes 14 members from public institutions, civic groups and academia, works to resolve conflicts between Korean and foreign residents and to reduce blind spots in public services.
M. H. Lee (mhlee@koreabizwire.com)
