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Minimum Wage System

Obligation to pay minimum wage
Each employer shall pay employees covered by the minimum wage, at least the minimum wage amount or more. If an employer and an employee have signed a contract of employment which provides for a wage lower than the minimum wage amount, 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 amount.

* Penalty provisions for non-compliance
An employer who fails to comply with the obligation to pay at least minimum wage shall be punished by imprisonment with labor for not more than 3 years or a fine not exceeding 20 million won. In such case, both the imprisonment with labor and fine may be imposed concurrently.

Obligation to inform employees of minimum wage
Any employer to whom the minimum wage applies shall notify the employees of contents on the relevant minimum wage by displaying it at a conspicuous place or by using other appropriate means.(by one day prior to the effective date of the minimum wage)

* Penalty provisions for non-compliance
An employer who fails to comply with the obligation to inform employees of the minimum wage shall be punished by an administrative 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