Legal information

Often, yes. Korea has a substitute payment system (대지급금): when an employer does not pay wages or severance, the Korea Workers' Compensation and Welfare Service (근로복지공단) pays the worker up to a limit and then collects the money from the employer itself. Foreign workers can use it on the same terms as Korean workers. The company does not have to be bankrupt for the simplest version to apply.

Which version applies to me?

There are two kinds.

Most foreign workers who lose a few months of pay are in the first column.

How much can I get?

The simplified payment covers your last three months of wages, up to three years of severance pay, and shutdown allowance, within an overall cap. As of 2025, the cap is 7 million won for wages, 7 million won for severance, and 10 million won in total when you claim both. The limits are set by regulation and can change, so check the current figure when you apply.

If you are owed more than the cap, the rest does not disappear. You can still claim it from the employer.

What are the conditions?

• The business had been running for at least six months before you left, and it was covered by industrial accident insurance (산재보험). Almost every workplace with employees is covered by law, even if the employer never registered it.
• You have a court judgment or the labor office's confirmation of unpaid wages (체불임금등 사업주확인서).
• You apply within the time limits. They are counted from the day you left the job and from the day you received the confirmation, so do not let months pass.

Workers who are still employed can also apply in some cases, if their pay is low. The rules for them are narrower.

How do I get there, step by step?

1. File a wage complaint (진정) at the regional labor office for your workplace. 2. During the investigation, ask the inspector to issue the confirmation of unpaid wages once the amount is confirmed. 3. Submit the application to the Korea Workers' Compensation and Welfare Service, online or at a branch, with the confirmation and your bank details. 4. The Service reviews it and pays into your account.

You do not need a lawyer for this path. There is no application fee.

Does my visa status matter?

The substitute payment is tied to the work you did, not to your visa, and a valid stay is not listed among its conditions. Since November 2025, filing a wage complaint does not get a worker reported to immigration, so you can start the process without that fear.

What does matter is being reachable. The Service may call you, and the money goes to a bank account. If you are planning to leave Korea, tell the inspector and ask how you will receive the payment before you go.

What can go wrong?

The employer says the amount is smaller. The confirmation only covers what is confirmed. If the amount is disputed, the undisputed part can often still move forward, and the rest may need a court.

You signed a paper saying you were paid in full. Read everything before you sign. A waiver can block the confirmation.

Too much time has passed. Deadlines are the most common reason applications fail. Start as soon as you realize the employer is not going to pay.

Next step

Use the wage calculator to work out your unpaid wages and severance before you file. If the amount is over the cap, or the employer has disappeared, a lawyer can help you recover the rest. Consultations are paid; when you contact us, a staff member will call you back and explain the fee.

법무법인 대한중앙
1533-7377

Rules applied

Wage Claim Guarantee Act (임금채권보장법), rules on substitute payment. Labor Standards Act (근로기준법) Article 36 (payment within 14 days after leaving), Article 49 (wage claims expire after 3 years).

This is general information, not legal advice. Every case is different.