Labor and automobiles are administrative areas that small business owners and the self-employed encounter most frequently. We will share information on matters with increased penalties or fixed application periods, where missing them can lead to significant losses.
1. Strengthening Penalties for Unpaid Retirement Benefits and Wages
The level of penalty for unpaid amounts is noticeably increasing.
- Unpaid Retirement Benefits — Increased from imprisonment of up to 3 years or a fine of up to 30 million won to imprisonment of up to 5 years or a fine of up to 50 million won. Effective September 18, 2026.
- Unpaid Wages — The same level of penalty is scheduled to be applied from October 8, 2026.
- At the same time, spousal bereavement and stillbirth leave are newly established, and spousal maternity leave can be taken up to 50 days before the expected due date.
Scope of Impact — For workplaces with employees, salary and retirement pay management will be much more important than before.
⚠️ The effective date and detailed penalty levels are based on cross-verified summaries from private sources and require further confirmation from the original legislation.
2. E-9 Employment Permit 4th Round Application (September 14-29)
The 4th round application for employment permits for businesses using non-professional employment (E-9) personnel will be conducted from September 14 to 29. The size of this round is 12,357 people, and the results are expected to be released on October 16. For manufacturing, agricultural/livestock, and construction businesses with workforce plans, it is crucial not to miss the application period.
3. Automobile Management Act Phase 2 (Scheduled to be implemented on December 3, 2026)
Phase 2 of the revised Automobile Management Act is scheduled to be implemented on December 3. It appears to include information on electric vehicle battery information provision and regular inspections for business-use trucks and special vehicles.
⚠️ Confirmation of the original text of the special provisions is required for specific application targets and implementation items. If you operate business vehicles, we recommend checking in advance whether you are subject to inspection obligations before implementation.
In Summary
- Increased penalties for unpaid retirement benefits (5 years/50 million won) 9.18, same level for unpaid wages 10.8.
- E-9 Employment Permit 4th Round Application 9.14.~9.29, Results 10.16.
- Automobile Management Act Phase 2 Scheduled for implementation on 12.3. (Confirmation of the original text of the special provisions required)
Many matters have approaching effective dates. Please confirm the details and applicable targets through the original legislation and guidance from the relevant authorities, and if it is unclear how it applies to your business, it is safer to check in advance.
This article is an administrative trend guide compiled by Hwang Yunsang Administrative Agent based on publicly available information. The applicability to individual cases requires confirmation from the relevant authorities.