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Showing posts with the label Penalties and Surcharges

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...

Ten Thousand Won Separates the Two Prices Korea Puts on One Speeding Violation

The Scene A camera photographs a hatchback at 78 kilometres per hour where the limit is 50. Nobody is pulled over. Three weeks later an envelope reaches the address on the vehicle register demanding 70,000 won. The driver is sure the figure should be 60,000, which is what an officer writes on a roadside ticket for the same 28 over. Both figures are correct. Korean law keeps two instruments apart for the same act. One is the notified penalty, the beomchikgeum , a sum the police invite a person to pay in settlement of conduct that is technically a criminal offence. The other is the administrative fine, the gwataeryo , a charge with no criminal character, aimed at whoever answers for the vehicle rather than at whoever held the wheel. The second is 10,000 won higher, in every bracket, on ordinary roads and in protection zones alike. The gap becomes interesting once the discount is applied. Every district office advertises a 20 percent reduction for paying an administrative fine early...

Moving House in Korea Puts the Fifteen-Day Report Under a Criminal Fine Article

Almost every guide for foreigners settling in Korea carries the same line: after you move, report your new address within fourteen days, or fifteen, or two weeks. The number is usually close to right. What the guides almost never mention is which part of the statute the deadline belongs to. That turns out to matter more than the number, because the Immigration Act does not put all of its late-report duties in the same place. Two duties that look identical on a checklist, both running fifteen days, both capped at one million won, are answered by two different articles with two different kinds of money. Two fifteen-day reports, two different sanction articles Article 36(1) — change of residence Duty: report within 15 days of the day you moved in Answered by Article 98 (penalty provisions) a fine of not more than 1,000,000 won 벌칙 · the Act's word here is 벌금 Article 35 — registration particulars Duty...

Severance Pay and Dismissal Notice Pay Look Alike in Korea. They Are Not.

The Scene Two people leave the same Seoul office in the same week. One resigns after three years to take a position abroad. The other is told on a Friday afternoon, eight months into the job, that the following Monday will be the last day. Afterwards both describe what they were paid in the same phrase: about a month's money. Both are describing something real. Neither is describing the same thing. Korean law attaches two separate thirty-day obligations to the end of employment, and the resemblance between them is genuine rather than an artefact of translation. Both are measured in units of thirty days. Both fall due within fourteen days of separation. Both sit behind criminal penalties. And in English-language guidance both tend to be flattened into the single word severance, which properly belongs to only one of them. The first is 퇴직금, statutory severance, the retirement-allowance form of the retirement benefit scheme that covered employers must maintain under the Act on th...