2026년 10월 9일 금요일

Fined for Wage Theft or Industrial Accidents? You May Be Barred from Sponsoring Foreign Workers — Draft Amendment (Under Public Notice) and Employer Checklist

📋 Key Takeaways Before You Read

  • Current Status: The Ministry of Justice issued a 40-day public notice for a draft partial amendment to the Immigration Act Enforcement Rules (출입국관리법 시행규칙) on June 19, 2026. As of October 10, 2026, whether the amendment has been promulgated and taken effect is not confirmed.
  • Already In Effect: Employers sentenced to imprisonment or a heavier sentence for Labor Standards Act violations are already subject to a 3-year restriction on sponsoring foreign workers. This has been in effect since before this amendment.
  • What the Draft Adds (Unconfirmed) — Wages: Labor Standards Act violation — fine of KRW 5,000,000 or more → 3 years / Currently on wage theft disclosure list → duration of disclosure.
  • What the Draft Adds (Unconfirmed) — Safety: OSHA violation → 1 year (other) / 3 years (worker death). Serious Accidents Punishment Act → 3 years. New flexible mitigation provision.
  • What Employers Should Do Now: Review wage payment status, confirm industrial safety obligations are met, and monitor the MOJ website and Official Gazette Online for confirmation and promulgation.

If you employ foreign workers, you need to read this article carefully. The draft amendment to the Immigration Act Enforcement Rules issued for public notice by the Ministry of Justice on June 19, 2026 contains provisions to restrict foreign worker sponsorship for employers convicted of wage theft or labor safety law violations. A 40-day public comment period was held, and as of October 10, 2026, whether the amendment has been promulgated and taken effect is not yet confirmed.

This article directly cross-references the MOJ press release (June 19, 2026) and the Immigration Act Enforcement Rules at the Korea Law Information Center (국가법령정보센터) to clearly distinguish what is already in effect under current regulations from what the draft amendment proposes to add. Key matters — wage theft employer sponsorship restrictions, industrial accident employer sponsorship restrictions, Immigration Act Enforcement Rules amendment, KRW 5,000,000 fine threshold — are organized from an employer's perspective.

1. Why This Draft Amendment Was Proposed — From the Naju Incident to the Cabinet Meeting

1-1. February 2026 Naju Forklift Accident

The direct trigger for this draft amendment is the forklift accident involving a foreign worker (E-9 visa) in Naju, South Jeolla Province in February 2026. The Ministry of Justice press release identifies this incident as the catalyst for this amendment.

1-2. Follow-up to the 40th Cabinet Meeting

On September 2, 2025, the 40th Cabinet Meeting chaired by the President officially put "measures to address wage theft of foreign workers" on the agenda.

The Ministry of Justice press release states the background for the amendment as follows: "This amendment was prepared to address the problem where it was difficult to restrict foreign worker sponsorship for employers who received fines for wage theft or were punished for violating labor safety laws, due to legislative gaps in the current regulations. At the same time, a provision for exceptional application was also prepared to allow the restriction period to be set differently for individual cases, in consideration of proportionality and fairness for violating employers."

1-3. Structural Gap in Current Regulations

Under current regulations, Labor Standards Act violations trigger a sponsorship restriction (3 years) only when an employer is sentenced to imprisonment or a suspended sentence of imprisonment or heavier. The Ministry of Justice explains that the difficulty in imposing sponsorship restrictions on employers sentenced to fines is a legislative gap, and the draft amendment was prepared to address this.

There was no separate basis in the current Enforcement Rules Article 17-3 for restricting foreign worker sponsorship for OSHA or Serious Accidents Punishment Act violations, and the draft amendment creates this basis for the first time.

💡 Note: Imprisonment (금고) vs. Fine (벌금)
Imprisonment (금고) is a custodial sentence that confines the person in a correctional facility — a liberty-depriving sentence of lower severity than penal servitude (징역) but still involving physical confinement. A fine (벌금) is a financial penalty settled by monetary payment. Even for the same wage theft offense, courts may sentence an employer to either imprisonment or a fine. Under current regulations, sponsorship restrictions applied only for imprisonment or heavier sentences. The draft amendment proposes to extend this standard to include fines of KRW 5,000,000 or more.

2. Current Regulations vs. Draft Amendment (Under Public Notice) — Full Comparison Table

The following table is based on the original text of Attachment 1 "Key Amendment Contents" of the MOJ press release (June 19, 2026). Current rows are already in effect; Added (Draft) rows are in the public notice stage and have not yet been confirmed or taken effect. Do not confuse the two.

StatusViolated LawPenalty ThresholdRestriction Period
CurrentImmigration Act (출입국관리법)Imprisonment or suspended sentence; fine of KRW 5,000,000 or more3 years
CurrentImmigration Act (출입국관리법)Fine less than KRW 5,000,0001 year
CurrentAct on Punishment of Sexual Exploitation (성매매처벌법)Imprisonment or suspended sentence3 years
CurrentAct on Special Cases for Gambling (사행행위 처벌특례법)Imprisonment or suspended sentence3 years
CurrentNarcotics Control Act (마약류 관리법)Imprisonment or suspended sentence3 years
CurrentLabor Standards Act (근로기준법)Imprisonment or suspended sentence3 years
CurrentAct on Special Cases for Sexual Violence / Act on Prevention of Sexual Violence (성폭력처벌법·성폭력방지법)Imprisonment or suspended sentence5 years
Added (Draft)Labor Standards Act (근로기준법)Fine of KRW 5,000,000 or more3 years
Added (Draft)Wage Theft Employer Public Disclosure ListCurrently on disclosure listDuration of disclosure
Added (Draft)Occupational Safety and Health Act — worker death (산업안전보건법)Imprisonment or suspended sentence; fine of KRW 5,000,000 or more3 years
Added (Draft)Occupational Safety and Health Act — other violations (산업안전보건법)Imprisonment or suspended sentence; fine of KRW 5,000,000 or more1 year
Added (Draft)Serious Accidents Punishment Act (중대재해처벌법)Imprisonment or suspended sentence; fine of KRW 5,000,000 or more3 years
Added (Mitigation)—Considering severity of violation, risk of reoffending, victim compensation, diligent fine payment, etc.Restriction period may be reduced
⚠️ Important: Green rows (Added/Draft) have not been confirmed or taken effect as of October 10, 2026. Check the MOJ website (www.moj.go.kr) public notice menu and the Official Gazette Online (gwanbo.go.kr) for the latest status.

3. Three Key Points in the Draft Amendment — What Employers Must Know

3-1. Labor Standards Act — Fines Now Included (Draft)

Under current regulations, a Labor Standards Act violation triggers a sponsorship restriction only when an employer is sentenced to imprisonment or a suspended sentence of imprisonment or heavier. The Ministry of Justice explains that the difficulty in imposing sponsorship restrictions on employers sentenced to fines is a legislative gap.

The draft amendment revises Article 17-3(2)(4) of the Enforcement Rules and adds new Article 17-3(2)(4-2). The two key changes are as follows.

First, employers sentenced to a fine of KRW 5,000,000 or more for Labor Standards Act violations face a 3-year restriction on sponsoring foreign workers. The threshold is the fine amount — KRW 5,000,000 or more immediately triggers the 3-year restriction.

Second, employers whose names are currently on the public disclosure list of employers with unpaid wages under Article 43-2 of the Labor Standards Act (근로기준법 제43조의2) face a restriction for the duration of that disclosure. The scope, criteria, and duration of the disclosure list are governed by Article 43-2 of the Labor Standards Act, so confirm details with the Ministry of Employment and Labor.

An important point is that these two restrictions operate independently. An employer sentenced to a fine below KRW 5,000,000 may still be subject to restrictions for the duration of the disclosure if they are on the disclosure list. Conversely, a fine of KRW 5,000,000 or more triggers the 3-year restriction regardless of whether the employer is on the disclosure list.

🚨 Fact Check: For Labor Standards Act violations, the sponsorship restriction period is a fine of KRW 5,000,000 or more → 3 years, and for employers currently on the disclosure list → duration of disclosure. "1–3 years" is terminology from the Occupational Safety and Health Act side (1 year for other violations, 3 years for worker death) — do not confuse them.

3-2. OSHA and Serious Accidents Punishment Act — New Sponsorship Restriction Basis (Draft, Unconfirmed)

There is currently no basis for restricting foreign worker sponsorship for OSHA and Serious Accidents Punishment Act violations. The draft amendment adds new Articles 17-3(2)(4-3) through (4-5) to create this basis for the first time.

The restriction period varies based on the severity of the violation and the outcome:

  • OSHA violation + worker death: imprisonment or suspended sentence, or fine of KRW 5,000,000 or more → 3-year restriction
  • OSHA violation + other violations (no worker death): imprisonment or suspended sentence, or fine of KRW 5,000,000 or more → 1-year restriction
  • Serious Accidents Punishment Act violation: imprisonment or suspended sentence, or fine of KRW 5,000,000 or more → 3-year restriction

The difference between 1 year and 3 years for OSHA violations is whether a worker died. This can be seen as setting restriction periods proportional to the severity of the violation outcome. Serious Accidents Punishment Act violations carry a 3-year restriction.

Workplaces in manufacturing, construction, agriculture, and other industries with occupational accident risks that employ foreign workers should pay particular attention. Verify immediately whether you are fully complying with all statutory OSHA obligations — safety and health training, risk assessments, provision of protective equipment, appointment of safety managers, and others.

💡 OSHA / Serious Accidents Punishment Act Restriction Periods at a Glance (Draft, Unconfirmed)
OSHA — other violations → 1 year | OSHA — worker death → 3 years | Serious Accidents Punishment Act → 3 years
Applicable when sentenced to imprisonment or suspended sentence, or fine of KRW 5,000,000 or more

3-3. Flexible Mitigation Provision — Not All Cases Treated Uniformly (Draft, Unconfirmed)

The draft amendment also introduces a mitigation provision alongside the tightened restrictions. The new Article 17-3(5) provides that the Minister of Justice may set different restriction periods in consideration of the individual circumstances of the employer.

The Ministry of Justice press release Q&A explains the purpose of this mitigation provision as follows: "Rather than applying to all fines, it is limited to fines of KRW 5,000,000 or more, and a mitigation provision is also included so that the Minister of Justice can take into account the risk of reoffending, the motivation and consequences of the legal violation, and whether fines have been diligently paid, to shorten the restriction period."

The specific mitigation factors are:

  • Risk of reoffending
  • Motivation and consequences of the legal violation
  • Diligence in paying fines

Employers who already have a violation history should document their measures for victim wage compensation and occupational safety and health system improvements (the MOJ states it may consider efforts toward victim compensation and other circumstances). However, since the specific procedures or reduction extent are not stated in the draft amendment text, the details must be confirmed through the finalized amendment after it is promulgated.

4. The Nature of This Restriction — Eligibility Screening, Not Additional Punishment

4-1. Administrative Measure vs. Criminal Punishment

Some employers understand this restriction as an extension of criminal punishment. However, the MOJ press release Q&A makes a clear distinction: "Sponsorship restrictions are not punishments in place of labor law violations, but administrative pre-emptive measures for immigration and foreign national administration to protect foreign workers from hazardous employment environments."

This restriction is an administrative measure separate from criminal judgments. It is not double punishment just because an employer has already been fined or sentenced to imprisonment. Criminal punishment is a sanction for past violations; foreign worker sponsorship restrictions are immigration administrative measures to ensure that foreign workers are employed in safe environments in the future.

4-2. Eligibility Screening and Remediation Period

According to the MOJ press release, this restriction serves two purposes. The first is as eligibility screening criteria for sponsoring foreign workers. "It is the eligibility screening criteria for judging whether a workplace can newly sponsor foreign workers in the future," as the Ministry of Justice explains. The intent is that a workplace with a violation history should first resolve the problem before considering sponsoring foreign workers.

The second is the purpose of a remediation period. The intention is to give employers time during the restriction period to re-establish their wage payment systems and occupational safety and health management systems. Rather than simply punishing, the message is to use that period to restructure the workplace into an environment where foreign workers can be safely employed.

5. Already-In-Effect Related Regulation — Changes in the Reporting Environment for Foreign Workers

Separately from the draft amendment, an amendment to the Immigration Act Enforcement Rules under MOJ Ordinance No. 1103 (법무부령 제1103호) has already been in effect since November 6, 2025. This change is something employers must be aware of.

Previously, many foreign workers who suffered harm were reluctant to report because they feared being identified as illegal stayers or subject to forced deportation. This was because officials such as labor inspectors who discovered during a wage theft investigation that a victimized foreign worker was subject to forced deportation were obligated to report this to immigration authorities. The amended regulation added this situation to the list of exemptions from the mandatory reporting obligation.

As a result, foreign workers subject to forced deportation can now worry less about being identified when reporting wage theft. The significance of this change from an employer's perspective is clear. The reporting barrier for foreign workers has been lowered. Employers should keep in mind that wage theft and similar incidents can lead to reports and investigations.

📌 Already In Effect: MOJ Ordinance No. 1103 (effective November 6, 2025) — expanded exemptions from mandatory reporting obligation for foreign workers suffering wage theft. This is a separate, independent measure from the draft amendment under public notice.

6. Employer Action Checklist — What to Do Right Now

Although this is still at the public notice stage, it is better to review in advance rather than rushing after the amendment is confirmed and promulgated. Taking a proactive approach now is the wiser choice.

✅ Action Checklist for Employers of Foreign Workers

1. Full Review of Wage Payment Status

Review the wage payment history for all currently employed foreign workers. Check whether payroll records match actual payment records, and whether there are any late or missing payments. Rectify any issues immediately.

2. Check Whether You Are on the Wage Theft Disclosure List

Directly confirm with the Ministry of Employment and Labor whether you are on the wage theft employer public disclosure list. If you are already on the list, you may be subject to restrictions for the duration of the disclosure if the draft amendment is confirmed and takes effect. Take proactive measures such as repaying unpaid wages and pursuing mediation.

3. Review Compliance with Occupational Safety and Health Obligations

Check whether you are fulfilling all statutory obligations: conducting safety and health training, performing risk assessments, providing protective equipment, and appointing safety managers. Using multilingual safety training materials for foreign workers is also recommended.

4. Understand the KRW 5,000,000 Threshold

The key threshold in the draft amendment is a fine of KRW 5,000,000 or more. If criminal proceedings are underway for Labor Standards Act or OSHA violations, whether you can sponsor foreign workers may change depending on the outcome. Seeking professional legal advice is recommended.

5. Understand the Mitigation Factors in Advance

Factors considered under the mitigation provision: risk of reoffending, motivation and consequences of the legal violation, and diligence in paying fines. If you have a violation history, start documenting victim compensation measures and recurrence prevention efforts now.

6. Monitor for Confirmation and Promulgation

Regularly check the MOJ website (www.moj.go.kr) public notice menu and the Official Gazette Online (gwanbo.go.kr).

7. Frequently Asked Questions (FAQ)

Q1. Is this regulation already in effect?
Current regulations (Labor Standards Act — imprisonment or heavier → 3 years, Immigration Act violations, etc.) are already in effect. However, the new restrictions such as Labor Standards Act fine of KRW 5,000,000 or more → 3 years and restrictions for OSHA and Serious Accidents Punishment Act violations (1 year or 3 years depending on severity) are still in the public notice stage. As of October 10, 2026, whether they have been promulgated and taken effect is not confirmed. Check the MOJ website (www.moj.go.kr) for the latest status.
Q2. If the fine is less than KRW 5,000,000, is there no impact?
The new restriction requirements in the draft amendment have a threshold of KRW 5,000,000 or more in fines, so amounts below that do not fall under the new provisions. However, under current regulations, those who received fines less than KRW 5,000,000 for Immigration Act violations are already subject to a 1-year restriction. Additionally, if an employer is placed on the wage theft disclosure list, they may be subject to restrictions for the duration of the disclosure regardless of the fine amount.
Q3. If I compensate victimized workers for unpaid wages, will the restriction period be reduced?
The factors considered under the mitigation provision are: risk of reoffending, motivation and consequences of the legal violation, and diligence in paying fines. The press release body states that "efforts toward victim compensation and other circumstances" may be considered to set different restriction periods. Since specific reduction criteria and procedures are not in the draft amendment text, please refer to official guidance after the finalized amendment is promulgated.
Q4. Which visa types (residence status) are covered?
The Ministry of Justice press release (June 19, 2026) does not specify the applicable residence status (e.g., E-9). The draft amendment revises Article 17-3 of the Enforcement Rules (Certificate of Visa Issuance standards), so the specific scope of application must be confirmed through the finalized amendment and the Enforcement Rules text.
Q5. Is this the same as the expansion of construction industry employment restrictions (planned for March 2027)?
No. The expansion of employer-level employment restrictions in the construction industry (discussed at the Foreign Workforce Policy Committee on August 14, 2026, planned for March 2027 implementation) is a separate policy from this draft amendment to the Immigration Act Enforcement Rules. The legal basis and implementation schedule are different.
Q6. How long does it take from public notice to final confirmation?
After the 40-day public comment period, the processes of review, deliberation, and promulgation proceed. The specific promulgation schedule will be known when the finalized amendment is announced. Periodically checking the MOJ website (www.moj.go.kr) public notice menu and the Official Gazette Online (gwanbo.go.kr) is the most reliable method.
Q7. Will the amendment apply retroactively to employers who already received fines before the promulgation date?
Whether retroactive application will apply is a matter that will be specified in the draft amendment text and enforcement regulations, and cannot be confirmed at the current public notice stage. Specific application criteria must be confirmed through official MOJ guidance after the finalized amendment is promulgated.

Closing — Preparation Now Is the Best Strategy

This draft amendment to the Immigration Act Enforcement Rules (under public notice) is intended to protect foreign workers from hazardous employment environments and to strengthen the eligibility of workplaces that sponsor foreign workers. Employers who already pay wages on time and rigorously fulfill their industrial safety obligations have nothing to worry about.

However, if wage payments are irregular or there are gaps in safety management, now is the time to conduct a review. Taking proactive action now is the most reliable approach.

Check the confirmation status directly through the MOJ website (www.moj.go.kr) and the Official Gazette Online (gwanbo.go.kr).

References

  • Ministry of Justice press release (June 19, 2026): "Public Notice of Draft Partial Amendment to Immigration Act Enforcement Rules" — www.moj.go.kr (Post No. 607643)
  • Korea Law Information Center, list of enactment/amendment rationales for Immigration Act Enforcement Rules — www.law.go.kr
  • Ministry of Justice website, Public Notice menu — www.moj.go.kr
  • Official Gazette Online — gwanbo.go.kr

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