Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q3 2023 Global Guide Quarterly updates   Download full Q3 2023 Global Guide Quarterly

Increase to Minimum Wage for 2024

New Regulation or Official Guidance

Authors: Yongjae Jung, Partner, and Johnny Ji Yong Hong, Associate – Kim & Chang

On July 19, 2023, the Minimum Wage Commission held a plenary session and decided that the minimum wage for 2024 would increase from KRW 9,620 per hour to KRW 9,860 per hour, and from KRW 2,010,580 to KRW 2,060,740 per month (based on 209 hours of work per month). Although the rate of increase is relatively low at 2.5%, it is estimated that approximately 3,347,000 workers will be directly affected by the minimum wage increase according to Statistics Korea’s survey.

Failure to pay the minimum wage carries a criminal penalty of imprisonment of up to three years for the representative director and/or a fine of up to KRW 20 million for the representative director and the company. It therefore would be prudent to check whether there are employees affected by the minimum wage increase.

New Guideline for Disposal of Local Employee’s Overseas-listed Shares Acquired through Stock Compensation Program

New Regulation or Official Guidance

Authors: Yongjae Jung, Partner, and Johnny Ji Yong Hong, Associate – Kim & Chang

On June 19, 2023, the Financial Supervisory Service (FSS) issued a press release announcing that a Korea-resident officer or employee who sells overseas-listed shares acquired through stock based compensation program of a global company may be subject to an administrative fine if they (1) fail to place an order for such share sale through a local licensed broker in Korea or (2) deposits proceeds from such share sale with a foreign financial institution without having filed a prior report with a relevant foreign exchange bank or regulator in Korea.

According to the press release, if said officer or employee of the Korean affiliate intends to sell such overseas-listed shares, they are required to deposit such shares with a securities account established in their own name with a local licensed broker (e.g., Korean securities company) and then place a sale order through such local licensed broker pursuant to Article 184 (1) of the Enforcement Decree of the Financial Investment Services and Capital Markets Act. The FSS’ position in this press release has substantially overturned the previous market practice regarding sale of offshore listed shares acquired through stock-based compensation program, and is likely to cause confusion in the market.