Unpaid salary in Korea: what foreign workers can do, YUSU Lawfirm attorneys

My Employer Hasn’t Paid My Salary in Korea. What Can I Do?

Employment & LaborUnpaid wages

Your employer owes you wages or severance. The 14-day rule after you leave, the three routes to payment, and what to set up before you leave Korea.

Quick answer: If you have left your job in Korea, the Labor Standards Act requires your employer to pay your wages and other money owed within 14 days of the date payment became due, unless you both agree to extend that deadline. If the money still does not arrive, keep every record you have and act early. Depending on the situation, the route may be a complaint to the labor authorities, a court payment order, or a government substitute payment scheme when the employer cannot pay.

Key points

  • After you leave, the employer must pay wages and all other money owed within 14 days, unless you both agree to extend (Labor Standards Act, Article 36).
  • An extension needs your agreement. Waiting on a promise is not the same as agreeing.
  • There are three routes: a labor office complaint, a court payment order or lawsuit, and state substitute payment when the employer cannot pay.
  • Leaving Korea does not end the claim, but arrange how you will be contacted, and who will act for you, before you go.

What This Means in Korea

Article 36 of the Labor Standards Act is the starting point. When a worker leaves or dies, the employer must settle wages, compensation and all other money owed within 14 days from when the obligation arose. An extension is possible only by agreement between the two parties.

Settlement of money owed on leavingLabor Standards Act, Article 3614 days

When a worker leaves or dies, the employer must settle wages, compensation and all other money owed within 14 days from when the obligation arose. The period can be extended only by agreement between the parties.

In plain EnglishThe clock starts when you leave. If your employer wants more time, it needs your agreement, ideally in writing.

In practice, many foreign workers hear “next month” or “when the company recovers” and wait. Waiting is not always wrong, but any extension should be agreed, not assumed, and it should be in writing if possible.

What You Should Do First

  1. Write down the exact amounts you believe you are owed, month by month, including any severance.
  2. Ask your employer in writing (a text message or email is enough) for payment and a date.
  3. Do not sign any document that says you have “received all wages” or “have no further claims” unless that is true.
  4. Keep using the same phone number and email so you do not miss official contact.
Be careful what you sign

Do not sign a document saying you have received all wages or have no further claims unless that is true. It is often the first thing an employer relies on later.

Evidence and Documents to Keep

  • Your employment contract, or any message that shows your wage and hours
  • Payslips and bank statements showing what was actually paid
  • Work schedules, timesheets, or photos and messages that show you were working
  • Any message where the employer admits money is owed or promises to pay
  • Your Alien Registration Card and the company’s business details

Your Options, Step by Step

Labor office complaint. Article 104 of the Labor Standards Act allows a worker to report a violation of the Act to the Minister of Employment and Labor or to a labor inspector. In practice this means filing with the regional Employment and Labor office. Labor inspectors have investigation powers under Article 102 and also act as judicial police officers for offences under labor law.

Court payment order or lawsuit. If the employer does not pay, a payment order through the court can turn your claim into an enforceable title without a full trial if the employer does not object. YUSU Lawfirm has used this route to recover unpaid severance for a client.

Substitute payment by the state. Under Article 7 of the Wage Claim Guarantee Act, the Minister of Employment and Labor can pay certain unpaid wages on the employer’s behalf to a worker who has left, in defined situations such as the employer’s rehabilitation or bankruptcy, a recognised inability to pay, or a court judgment or payment order. The covered wages depend on the route: where the employer is in rehabilitation, bankruptcy, or recognised as unable to pay, the scheme covers up to the final six months of wages; where the claim rests on a court judgment or payment order or an official confirmation of unpaid wages, it covers the final three months of wages. Other limits set by the Act also apply.

Type of substitute paymentWho can claim it
Insolvency paymentWorkers who left within three years counted from the date one year before the application for bankruptcy or rehabilitation, or for recognition that the employer cannot pay
Simplified payment, court routeWorkers who started a lawsuit or similar court proceeding (judgment, payment order, conciliation) within two years from the day after leaving
Simplified payment, complaint routeWorkers who filed a complaint, petition or criminal complaint about unpaid wages within one year from the day after leaving

Source: Enforcement Decree of the Wage Claim Guarantee Act, Article 7. The maximum amounts are set by Ministry of Employment and Labor notice and change over time, so check the current figure before relying on it.

RouteWhat it isWhen it fits
Labor office complaintA report to the regional Employment and Labor office; labor inspectors can investigate (Articles 102 and 104)The employer is operating and the facts of the work are clear
Payment order or lawsuitA court route that can give you an enforceable title, without a full trial if the employer does not objectThe employer will not pay, or disputes the amount
Substitute payment by the stateThe state pays certain unpaid wages on the employer’s behalf (Wage Claim Guarantee Act, Article 7)Rehabilitation, bankruptcy, a recognised inability to pay, or a court judgment or payment order

YUSU Lawfirm case

Severance payPayment orderLimitation defence

Unpaid severance pursued through a court payment order

Situation
A long-serving worker asked for severance pay after leaving. The employer did not pay and later argued the claim was out of time.
Our role
Filed a payment order prepared to full litigation standard, and answered the limitation argument with the employer’s own messages acknowledging the debt.
Outcome
The claim was secured at the payment order stage, leaving only the judgment once the employer objected.
Read the case →

Every case turns on its own facts. Past results do not guarantee a similar outcome.

If you work under the Employment Permit System

Workers employed under the Act on the Employment of Foreign Workers have two insurance schemes that matter when you leave Korea. They sit alongside, not instead of, your claim for wages and severance.

Departure guarantee insuranceAct on the Employment of Foreign Workers, Article 13; Enforcement Decree, Article 21Paid by the employer

An employer covered by the Employee Retirement Benefit Security Act who hires a foreign worker with at least one year of employment period remaining must take out this insurance or trust within 15 days of the employment contract taking effect. A worker who has worked continuously for at least one year can claim the accumulated amount as a lump sum on leaving Korea (other than a temporary trip), on death, or on a change of status.

In plain EnglishThis is money set aside for you on departure. Ask which insurer holds it and claim it before or as you leave.

Return cost insuranceAct on the Employment of Foreign Workers, Article 15Taken out by the worker

The foreign worker must take out insurance or a trust to cover the cost of returning home. The details of joining, management and payment are set by Presidential Decree, and the limitation period for claiming follows the same rules as departure guarantee insurance.

In plain EnglishYou paid into this yourself. Claim it when you leave, and do not let the claim lapse.

Speak to a lawyer if the amount is large, if the employer says nothing is owed, if your visa status depends on the job, or if you plan to leave Korea soon and need the claim to continue after you go.

Soobin You
Soobin YouFounding Attorney, YUSU LawfirmHandles civil and labor claims for foreign clients and consults directly in English.Profile →
Kyungmin Kim
Kyungmin KimDeputy Managing AttorneyEducated in the United States. Works with clients directly in English, no interpreter needed.Profile →

Frequently Asked Questions

Does the 14-day rule apply while I am still working there?

Article 36 applies when the worker leaves or dies. Late pay during employment raises different issues and depends on the facts.

Can the deadline be extended?

Yes, but only by agreement between you and the employer.

I am leaving Korea. Do I lose my claim?

Not automatically, but it becomes harder to manage from abroad. Set up how you will be contacted, and consider appointing someone to act for you, before you leave.

Related guides

This article is general information about Korean labor law and is not legal advice. Outcomes depend on the facts of each case, and statutory provisions are subject to amendment.

Unpaid wages

Ask about unpaid wages or severance

In a first consultation we look at:

  • what you are owed, including severance, and the deadlines that apply
  • whether a labor office complaint, a payment order or state substitute payment fits
  • how the claim can continue if you are leaving Korea

A consultation is not a commitment. If you need representation, we explain what it would involve and what it would cost before you decide.

Please do not send documents or evidence through the form. We arrange a secure channel once we take the matter on.
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