Unpaid Korean Wages Carry Twenty Percent Interest From Payday, Not From Day Fifteen
A foreign employee in Seoul is owed one month of wages: 3,000,000 won for March 2026. The employer does not dispute the debt. The contract fixes payday on the 25th of each month. The employee resigns on 30 June 2026, and the money lands on 25 September 2026. Both sides accept that Korean law adds delay interest at 20 percent a year. They disagree about which day the meter started. Read one way, the clock starts on 15 July 2026, the day after the fourteen-day settlement deadline that follows the end of employment: 73 days of interest, or 120,000 won. Read the other way, it starts on 26 March 2026, the day after the missed payday: 184 days, or 302,466 won. One unpaid wage, one rate, and a 182,466 won gap that turns on which line of a single article applies. The Labor Standards Act settled this in an amendment promulgated on 22 October 2024, and the settlement took effect on 23 October 2025. A great deal of published guidance still describes the older reading. The Scene Delay inte...