Labor ministry launches crackdown on unpaid overtime in key industries

The labor ministry said Tuesday it will conduct a two-month inspection campaign starting Sept. 15 to eliminate the abuse of lump-sum wage contracts that often results in unpaid overtime. The supervision will target the manufacturing, information communications, and professional scientific services sectors, which recorded the highest volume of complaints through the government's anonymous reporting center.

Reports of such violations submitted between January and August reached 260 cases, nearly three times the 98 logged during the same period last year.

The drive follows a similar campaign in the first half of the year focused on workplaces with high concentrations of young employees. That inspection covered 101 sites and identified 34 businesses that had failed to pay required allowances for extended, night, or holiday work under fixed salary agreements.

Inspectors will verify whether companies are maintaining transparent records of working hours and calculating statutory allowances separately from base pay. Even if a lump-sum agreement exists, companies must pay the difference if the amount falls short of legally mandated overtime compensation.

"Legal promises must not be undermined by lump-sum wage contracts," said Kim Young-hoon, the minister of employment and labor. He added that the ministry will combine strict supervision with support programs to help businesses establish fair wage systems.

To assist smaller enterprises, the government will link inspection results with consulting services and subsidies for human resources management platforms.