Monday morning. This week is leading up to the holidays, so there are deadlines looming with money at stake. Today, I’ve sorted out two crackdowns on unpaid payments and two revised implementing regulations with submission periods open.
Today’s Key Points (3 Lines) > 1. Gyeonggi Province is conducting intensive inspections for unpaid construction contract payments before Chuseok. Violations will result in business suspension or fines. > 2. The Ministry of Employment and Labor’s intensive wage arrears clearance guidance period ends on September 23 (Tuesday). This is the final window for voluntary clearance. > 3. A maximum fine of 10 million won is being introduced for taxi business operators’ violation of working hour setting obligations (submissions accepted until 10/26).
## 1. Gyeonggi Province Intensive Inspection of Unpaid Construction Contract Payments — Business Suspension and Fines for Violations
- What’s Changing? — Gyeonggi Province announced that it will intensively manage unpaid payment complaints received from construction sites within the province until before Chuseok. It will move beyond simple mediation and, if violations are confirmed, will proceed with administrative actions such as business suspension or fines. As of this year, 137 complaints involving 2.626 billion won have been received, and 41 complaints involving 568 million won have been resolved.
- Who is Affected? — Contractors, main and subcontracting companies, and construction equipment rental businesses at construction sites within Gyeonggi Province. Subcontractors who haven’t received payment and construction equipment rental business operators are also reporting parties.
- When Does it Start? — It is already in progress and will be intensively managed until before the Chuseok holiday (Gyeonggi Province announcement on September 20, 2026).
- Administrative Agent’s Comment — The bare fact that you were not paid is not enough to trigger an administrative action. You need supporting documents such as a subcontracting agreement, a completion inspection record, records showing payment requests and rejections, and a construction equipment rental agreement to determine whether a violation occurred. Those who are owed money should start gathering documents now, and those who owe money would be better off clearing things up before the matter progresses to the enforcement stage. It’s much cheaper to settle the matter proactively than to dispute a business suspension later. Reports of subcontracting wage arrears can be made at 031-8030-3842 or 3848, construction equipment rental arrears at 031-8030-4142, or online at the Gyeonggi Province Subcontracting Injustice Reporting Center.
- Source: [News Journalism · Report on Gyeonggi Province’s intensive crackdown on unpaid construction payments](https://news.jkn.co.kr/post/990943)
## 2. Intensive Wage Arrears Clearance Guidance Period Ends September 23 — Full-Scale Investigation of 8,000 High-Risk Businesses
- What’s Changing? — The Ministry of Employment and Labor’s intensive wage arrears clearance guidance period before Chuseok ends on September 23 (Tuesday). During this period, full-scale investigations and supervision were conducted on approximately 8,000 businesses with repeatedly received wage arrears reports and high-risk businesses such as the construction industry. This is an increase of 2,000 from the 6,000 businesses last year. If there are high-value arrears or a large number of affected workers, the head of the regional labor office will personally go to the site to provide guidance on clearance.
- Who is Affected? — Both workers who haven’t received wages or severance pay, and business owners who are behind on payments due to financial difficulties.
- When Does it Start? — September 1, 2026 – September 23, 2026 (Ministry of Employment and Labor announcement on August 31, 2026).
- Administrative Agent’s Comment — If you are a business owner and the reason is financial difficulties, you can be guided to the ‘Wage Arrears Clearance Support Business Owner Loan Program,’ so it’s better to explain your situation to the relevant Employment and Labor Office than to try to tough it out. If you are classified as maliciously or habitually delinquent, a criminal investigation may be launched, which is a completely different matter. If you are a worker, even after the guidance period ends, you can still file a complaint at any time, so don’t take the end of the period as a reason to give up. Please gather your employment contract, pay stubs, and attendance records.
- Source: [Newspim · Ministry of Labor reports on intensive wage arrears clearance before Chuseok](https://www.newspim.com/news/view/20260831000476)
## 3. New Fines for Taxi Operators' Violation of Working Hour Setting Obligations – Announcement of Amendments to the Taxi Development Act Enforcement Decree
- What’s Changing? – The Ministry of Land, Infrastructure and Transport has announced for public comment proposed amendments to the Enforcement Decree of the “Law on the Promotion of Taxi Transportation Business.” This includes ① establishing a basis (Article 21-2, newly added) for payment data (including payment approval date and time, payment amount, vehicle number, etc.) to be electronically submitted to the taxi operation information management system by payment brokers, processing agents, and taxi businesses; ② specifying justifiable reasons for exemptions from submission, such as natural disasters, communication network failures, and lack of data (Article 21-3, newly added); and ③ establishing fine criteria (Appendix 3). Fines for violations of working hour regulations will be 5 million won for the first offense, increasing to 10 million won for the third or subsequent offense. Failure to submit data will be 2 million won for the first offense, increasing to 10 million won for the third or subsequent offense.
- Who is Affected? – General taxi transportation businesses, taxi payment brokers, and processing agents. Working hour regulations are directly related to taxi driver salaries, so they also affect employees.
- When Will This Take Effect? – The law was promulgated on May 12, 2026, as Law No. 21635, and the period for submitting comments on the Enforcement Decree is September 18, 2026 – October 26, 2026.
- Administrative Agent’s Comment: – This is a tiered penalty structure where the amount doubles with repeated violations. Don’t take the first penalty lightly, as subsequent penalties will be more expensive. Payment data submission is an obligation that both the business and the payment broker must fulfill, so it’s a good idea to establish systems and assign personnel now. If you have concerns about these provisions, now is the time to submit comments during the comment submission period (Ministry of Land, Infrastructure and Transport, Transportation Service Policy Division, 044-201-4755).
- Source: [National Participation in Legislation Center · Announcement of Amendments to the Enforcement Decree of the Law on the Promotion of Taxi Transportation Business](https://opinion.lawmaking.go.kr/gcom/ogLmPp/88702)
## 4. 'Part-Time Reserve Force' Becomes 'Regular Reserve Force' – Announcement of Amendments to the Reserve Force Act Enforcement Decree
- What’s Changing? – The Ministry of National Defense has announced for public comment proposed amendments to the Enforcement Decree of the “Reserve Force Act.” The current name, 'part-time reserve force,' will be changed to 'regular reserve force' (Article 5-2), and the previous upper limit on personnel (5,000 for short-term service, 700 for long-term service) that was included in the Enforcement Decree will be removed, to be determined annually in consultation with the Minister of Planning and Budget. This is intended to increase personnel to respond to a shortage of available active-duty forces.
- Who is Affected? – Applicants for regular reserve force (formerly part-time reserve force), prospective reserve force members, and units and agencies responsible for related work.
- When Will This Take Effect? – The law will take effect on December 10, 2026, and the period for submitting comments on the Enforcement Decree is September 18, 2026 – October 28, 2026.
- Administrative Agent’s Comment: – This amendment does not immediately increase the obligations of individual reserve force members. However, because the upper limit on personnel is being removed from the Enforcement Decree, the recruitment scale may vary from year to year. If you are considering applying, do not assume that the announcement for the next year will be the same as previous years; check the announcement for that year (Ministry of National Defense, Reserve Power Planning Division, 02-748-5207).
- Source: [National Participation in Legislation Center · Announcement of Amendments to the Enforcement Decree of the Reserve Force Act](https://opinion.lawmaking.go.kr/gcom/ogLmPp/88664)
## Upcoming Deadlines This Week
- September 23 (Tuesday) – End of the Ministry of Employment and Labor’s concentrated guidance period for unpaid wages.
- October 12 (Monday) – Deadline for submitting comments on the amended Enforcement Decree of the Passenger Transport Service Act (criteria for administrative sanctions on platform intermediary operators).
- October 26 (Monday) – Deadline for submitting comments on the amended Enforcement Decree of the Taxi Development Act.
- October 28 (Wednesday) – Deadline for submitting comments on the amended Enforcement Decree of the Reserve Force Act, and four other amended Enforcement Decrees of laws including the National Merit Servicemen Act.
*This briefing is prepared and provided by Hwang Yoon-sang Administrative Agent Office based on publicly available information. The applicability of individual cases may require verification with the relevant authority.*