● Updated Law: Labor Standards Act
What it does: Increases penalties for unpaid wages and expands protections for workers
Took effect: Oct. 23
To ensure stable livelihoods for workers, sanctions against employers who fail to pay wages on time have been significantly strengthened. Under the revised law, if an employer intentionally withholds wages for a cumulative total of three months or more within a year, affected workers may now claim up to three times the amount owed as compensation.
Previously, delayed interest on unpaid wages applied only to deceased or retired workers, but the amendment extends this right to current employees as well.
The government has also tightened penalties for habitual wage defaulters, including credit restrictions, ineligibility for government subsidies, disadvantages in public sector bidding, and requests for travel bans. In addition, prosecutors are no longer bound by the victim’s objection when deciding whether to pursue charges in wage-related crimes.
Broadening support for residents, businesses in shrinking regions
● Updated Law: Special Act on Support for Depopulation Regions
What it does: Expands administrative and financial support for residents and businesses relocating to areas with declining populations
Took effect: Oct. 2
To revitalize regions facing population decline, the revised act introduces new support measures and expands existing ones to improve living conditions and attract residents and businesses.
Central and local governments may now provide administrative and financial assistance for rural study programs, while local municipalities are authorized to set related regulations through ordinances.
Individuals relocating from metropolitan areas to population-declining regions for residential purposes are eligible for preferential loans for public land and reductions or exemptions in public property usage fees.
The scope of business support has also widened. In addition to small and medium-sized enterprises, mid-sized companies below a certain revenue threshold can now receive rent reductions or exemptions on industrial sites within depopulated areas — a move aimed at boosting local economies through increased investment and job creation.
In collaboration with the Ministry of Government Legislation, The Korea Herald publishes a monthly feature introducing recently updated South Korean laws. The ministry’s Easy Law service (https://www.easylaw.go.kr/CSM/Main.laf) provides accessible summaries of Korean laws categorized by topic in English and 11 other languages, including Arabic, Bengali, Cambodian, Simplified Chinese, Indonesian, Japanese, Mongolian, Nepali, Thai, Uzbek and Vietnamese. — Ed.
mkjung@heraldcorp.com
