82 of 101 inspected workplaces found in violation, but only one criminally charged

Minister vows to 'actively support' legislation to end unpaid overtime

Kim also backs scrapping non-prosecution clause for wage theft

Democratic Party of Korea lawmaker Lee Yong-woo questions Employment and Labor Minister Kim Young-hoon during the Ministry of Employment and Labor's national audit by the National Assembly's Climate, Energy, Environment and Labor Committee on Tuesday. [Provided by Rep. Lee Yong-woo's office]
Democratic Party of Korea lawmaker Lee Yong-woo questions Employment and Labor Minister Kim Young-hoon during the Ministry of Employment and Labor's national audit by the National Assembly's Climate, Energy, Environment and Labor Committee on Tuesday. [Provided by Rep. Lee Yong-woo's office]

Employment and Labor Minister Kim Young-hoon said Tuesday he would actively support legislation this year to eliminate "unpaid labor" stemming from the abuse of comprehensive wage contracts. His remarks came in response to criticism from lawmakers that the ministry had largely issued only corrective orders despite identifying widespread violations.

Speaking at the Ministry of Employment and Labor's national audit by the National Assembly's Climate, Energy, Environment and Labor Committee, Kim said a bill banning comprehensive wage contracts must pass the Assembly in the second half of this year. He was responding to a question from Democratic Party of Korea lawmaker Lee Yong-woo, who called for the prohibition to be written explicitly into law.

Kim identified comprehensive wage contracts as a driver of low pay and long working hours. "This is a comprehensive wage problem that causes unpaid overtime and unpaid labor — it must be eradicated," he said. "I will actively support second-half legislation."

Lee criticized the ministry's targeted inspection results as a "slap on the wrist." According to Lee, the ministry launched inspections this year at 101 workplaces suspected of abusing comprehensive wage contracts and found violations at 82 of them. Yet only one case resulted in a criminal referral, with the rest receiving corrective orders.

Banning the comprehensive wage system is both a campaign pledge of President Lee Jae Myung and a government policy priority. However, a labor-management-government consultative body on reducing actual working hours, which the ministry convened, failed to reach agreement on banning comprehensive wage contracts at its Dec. 30 meeting last year.

According to Lee, nine bills related to comprehensive wage contracts were submitted to a National Assembly legislative subcommittee in April, but they stalled after the ministry raised objections to codifying an explicit ban. At the time, the ministry told the Assembly it could curb abuses through labor inspections without needing a prohibition clause.

Kim also said he sympathized with the intent behind abolishing the non-prosecution clause for wage theft. Under the current system, an employer cannot be punished if the victim states they do not wish to press charges.

Lee said that while an amended Labor Standards Act — which took effect last October and excluded some repeat wage-theft offenders from the non-prosecution clause — was a step forward, its scope was too narrow to be effective. He argued the limited scope reflected the ministry's own position during the 2024 legislative process.

Kim said he "strongly agreed" with Lee's question. "There are various views on whether the non-prosecution clause is effective or not, but if the National Assembly decides on the matter, the ministry will fully comply," he said.

The sentencing guidelines for serious accident crimes drafted by the Supreme Court's Sentencing Commission on Sept. 22 also drew scrutiny. Lee raised the case of the Aricel disaster and others, criticizing the commission's decision to list a settlement with bereaved families as a special mitigating factor and warning it could reward employers who pressure victims or delay legal proceedings to secure a deal.

The Korean Confederation of Trade Unions had also objected to factoring family settlements into sentencing reductions when the draft guidelines were released. The Federation of Korean Trade Unions raised concerns that wide sentencing ranges could lead to significant disparities in punishment depending on individual judges' discretion.

Kim said he was aware of widespread field-level concerns about the mitigating factors. "I hold a similar view," he added.


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