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Minimum Wage System

Obligation to pay minimum wage
Employers should pay their employees at least the minimum wage rate.
If a worker and an employer have signed a contract of employment which provides for a wage lower than the minimum wage rate, the provision shall be null and void. In this case, it shall be deemed as if they had agreed on a wage at the minimum wage rate.

Obligation to inform employees of minimum wage
Employers should inform their employees of a new rate of minimum wage and its effective date, no later than 1 day before the new rate takes effect.

Penal provisions for non-compliance
An employer who fails to comply with the obligation to pay at least minimum wage shall be punished by imprisonment of up to 3 years or a fine not exceeding 20 million won, or both.
An employer who fails to comply with the obligation to inform employees of the minimum wage shall punished by a fine not exceeding 1 million won.

Reference: 「Minimum Wage Act」 Article 6, 11, 28, 30 and 「Enforcement Decree of the Minimum Wage Act」 Article 11, 22