Wage arrears rise to record 1.2 tln won last year: report

SEOUL, Jan. 17 (Yonhap) -- The total size of delayed wage payments reached record
levels last year as the sluggish economy affected the cash flow of local
businesses, a government report said Sunday.
The report by the Ministry of Labor showed that 170,726 companies did not pay
wages on time from January through November, with the total amount of arrears
reaching 1.24 trillion won (US$1.10 billion).
The total is the largest since Seoul began compiling statistics on delayed wage
payments by companies operating in the country in 2004, the report said.
According to the report, the total number of workers who reported they did not
receive wages in a timely manner reached 276,439, up 10 percent on-year with the
average amount of delayed wages topping 4.49 million won per person.
The report said the majority of the arrears involved small-sized companies that
had been hit hardest by the sluggish economy.
The Labor Ministry said it is prodding companies to clear outstanding wages
before the Lunar New Year holidays next month and warned to take tough punitive
actions against employers who intentionally avoid paying wages.
yonngong@yna.co.kr
(END)