Korea to Bar Wage-Stealing Employers from Hiring Foreign Workers: What the 2026 Law Change Means

📋 Policy Update — June 2026
⚠️ 입법예고 단계 — Not Yet Final
📋 Source: Ministry of Justice press release, June 19, 2026 — 출입국관리법 시행규칙 제17조의3 일부 개정안 입법예고

Korea’s Ministry of Justice announced on June 19, 2026 that it is revising immigration rules to bar employers who commit wage theft or violate workplace safety laws from hiring foreign workers. The proposed amendment — currently in a 40-day public comment period — closes a significant legal gap that previously made it difficult to restrict such employers despite their violations.

📋 What’s being proposed

Employers convicted of wage theft (임금체불) or workplace safety violations will face a 1–3 year ban on hiring foreign workers. This extends existing restrictions — which only covered imprisonment-level sentences — to include fines of KRW 5 million or more. Employers on the public wage-theft blacklist (체불임금사업주 명단공개) will be banned for the entire duration their name appears on the list.


Background: Why This Is Happening Now

The proposed change traces back to a forklift accident in Naju, South Jeolla Province in February 2026 involving an E-9 foreign worker. The incident prompted the Cabinet — chaired by the President — to direct the government to strengthen protections for foreign workers against wage theft. The Ministry of Justice identified a gap in existing law: employers punished with fines (rather than imprisonment) for labor violations could continue hiring foreign workers without restriction. This amendment is designed to close that gap.


The Three Key Changes

① Labor Standards Act violations — fine threshold added

ViolationPrevious ruleProposed rule
Labor Standards Act (근로기준법) violation Only imprisonment or suspended sentence triggered ban Fine of KRW 5M+ → 3-year ban on hiring foreign workers
On public wage-theft blacklist (체불임금사업주 명단공개) Not covered Ban lasts for entire duration on the blacklist

② Workplace safety law violations — new restrictions added

ViolationRestriction period
Industrial Safety and Health Act (산업안전보건법) — worker death resulted 3-year ban
Industrial Safety and Health Act — other violations 1-year ban
Serious Accident Punishment Act (중대재해처벌법) 3-year ban
Threshold for all of the above Imprisonment, suspended sentence, OR fine of KRW 5M+

③ Flexibility clause — ban can be shortened

A new flexibility provision allows the Minister of Justice to shorten the restriction period within the set limits, taking into account factors such as: the severity of the violation, the risk of reoffending, whether the employer has made efforts to compensate victims, and whether fines have been paid. This gives the system room to treat employers differently based on their specific circumstances.


What This Means for Foreign Workers

✅ What this protects you from
  • Employers with a history of wage theft will no longer be able to bring in new foreign workers while continuing to underpay existing ones
  • Employers responsible for serious workplace accidents will face a concrete consequence beyond criminal penalties
  • The wage-theft blacklist (previously a naming-and-shaming measure only) now has direct immigration consequences for the employer
💡 What this means practically for E-9 workers If your employer commits wage theft and is fined KRW 5 million or more — or if they appear on the Ministry of Employment and Labor’s wage-theft blacklist — they will be barred from sponsoring new foreign workers. This creates a direct financial incentive for employers to pay wages on time, as repeated violations now affect their ability to operate their workforce at full capacity.
📌 This does not affect your existing status The proposed restriction affects the employer’s ability to invite new foreign workers — it does not automatically affect the visa status of foreign workers currently employed at that company. If you are already working there, your visa status is determined by your individual situation, not the employer’s restriction status. However, if your employer is subject to this restriction and you want to change employers or apply for E-7-4, you should seek advice from your local immigration office.

Timeline and Current Status

ItemDetails
Announcement dateJune 19, 2026
Current status입법예고 (Public comment period) — Not yet law
Comment period40 days from June 19, 2026
Expected enactmentAfter public comment period closes — exact date not yet confirmed
Where to find the full textMinistry of Justice website (moj.go.kr) or Korea Official Gazette (gwanbo.go.kr)
How to submit commentsBy mail or email to the Ministry of Justice during the 40-day period
⚠️ This is not yet law The 입법예고 (legislative notice) stage means this is a proposed amendment that has been announced for public comment. It will go through further review before being formally enacted. We will update this article when the amendment is confirmed and a specific effective date is announced.

If Your Employer Is Already Committing Violations

You don’t need to wait for this law to take effect to report wage theft or safety violations. Existing protections apply now:

  • Wage theft: File a complaint at the Ministry of Employment and Labor (고용노동부) — call 1350. Filing a labor complaint does not automatically trigger a visa review.
  • Workplace safety violations: Report to the Korea Occupational Safety and Health Agency (KOSHA) or the Ministry of Employment and Labor
  • General labor rights questions: Seoul Global Center (02-2075-4180), Foreign Worker Support Center (1644-0644)
✅ Summary
  • Proposed change: employers fined KRW 5M+ for wage theft → 3-year ban on hiring foreign workers
  • On wage-theft blacklist → ban lasts entire duration on list
  • Safety violations → 1–3 year ban depending on severity
  • Flexibility clause: Ministry of Justice can shorten ban based on circumstances
  • Status: 입법예고 only — not yet final law
  • Does not affect current visa holders at those companies
  • We will update when the amendment is formally enacted

Related: Your Labor Rights in Korea: Overtime, Severance, and What to Do When Your Employer Doesn’t Pay →

Related: E-9 to E-7-4: How to Switch to a Professional Work Visa →

Related: Reporting a Job Change to Immigration →

Source: Ministry of Justice (법무부) press release, June 19, 2026 — “출입국관리법 시행규칙 일부 개정안 입법예고: 외국인 근로자 인권침해 고용주의 초청 제한 강화.” Contact: 체류관리과 02-2110-4059. This article will be updated when the amendment is formally enacted. This guide does not constitute legal advice.
위로 스크롤