Unpaid Wage Guarantee Fund (체당금) in Korea for Foreign Workers

If your employer in Korea owes you wages and has gone bankrupt or been formally declared unable to pay, the government will pay those wages for them. You do not chase the employer. The government pays you, then pursues the employer itself.

This program is called the Wage Claim Guarantee Fund (임금채권보장기금), or 체당금 (che-dang-geum) for short. It covers all workers, including foreign workers and undocumented workers. Most of the workers who need it most do not know it exists.

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Two different problems, two different paths

Before claiming from the Wage Guarantee Fund, you need to know which situation you are in. The two paths are completely separate.

Situation A: Your employer is insolvent. They have filed for bankruptcy, or a court or the labor authority has officially confirmed they cannot pay their debts. This is the situation where the Wage Guarantee Fund (체당금) applies. The government pays you directly.

Situation B: Your employer is still operating but refuses to pay. They have money. They are just not paying you. This is a wage-arrears complaint (임금체불 진정), filed with the Ministry of Employment and Labor (고용노동부) or the local labor office (지방고용노동관서). The Ministry contacts the employer and can refer them for criminal prosecution if they still refuse.

If you are not sure which situation applies to your employer, call 1350 (the MOEL multilingual helpline). They handle both situations and can tell you which path fits.

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What the Wage Guarantee Fund actually does

Under the Wage Claim Guarantee Act (임금채권보장법), the government funds a reserve that can be used to pay workers when their employer cannot. The Korea Workers' Compensation and Welfare Service (근로복지공단, comwel.or.kr) administers the claims.

When you file a 체당금 claim:

1. 근로복지공단 verifies that your employer is insolvent
2. They calculate how much you are owed, up to the statutory limits
3. They pay you directly from the fund
4. They then pursue the employer to recover that money on the government's behalf

You are out of the dispute. The government becomes the creditor.

What the fund covers

The fund pays up to 3 months of unpaid wages. It also covers unpaid retirement allowance (severance, 퇴직금) under the same scheme.

The covered amount is subject to a statutory monthly cap. MOEL sets this cap each year and adjusts it by worker age. The cap means there is a ceiling on what you can recover per month: if your wage was higher than the cap, you receive the cap amount, not the full wage (as of 2026, verify the current year's cap at comwel.or.kr or by calling 1350, as this figure changes annually).

To illustrate how the calculation works: a worker owed 3 months of wages at roughly 2.8 million KRW per month would recover around 8.4 million KRW, assuming their wage falls within the monthly cap. This is an illustrative figure only. Your actual recovery depends on the current cap and your specific wage.

The 3-year window

Unpaid wages must have occurred within 3 years of the date you file the claim. If your employer went bankrupt but the unpaid wages are older than 3 years, they are not covered.

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Who qualifies

The Wage Claim Guarantee Act covers all workers employed by any employer in Korea. There is no nationality restriction, no visa requirement, and no documentation threshold.

Foreign workers qualify. A 2024 MOEL FAQ confirms that foreign nationals file 체당금 claims on the same basis as Korean citizens. The process is the same form, the same office, the same rules.

Undocumented workers qualify. The law extends to all people providing labor in an employment relationship, regardless of immigration status. Undocumented workers have successfully claimed 체당금.

Your visa status does not affect your claim. The 근로복지공단 does not contact immigration authorities when you file. The claim process is separate from any immigration enforcement. Filing does not put your status at risk.

The practical eligibility conditions are:

• Your employer is insolvent (bankrupt or formally confirmed unable to pay)
• You had an employment relationship with that employer
• Wages were owed and unpaid
• The unpaid wages occurred within 3 years of your filing date

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How to file a 체당금 claim

Step 1: Confirm your employer's insolvency status

You need proof that your employer is legally insolvent. This can be:

• A bankruptcy filing notice from the court
• A court ruling confirming inability to pay
• An administrative determination from MOEL that the employer cannot pay

If you are not sure whether your employer qualifies, call 1350. The helpline operates in English, Vietnamese, Chinese, Indonesian, Filipino, Russian, Thai, and Khmer (hours vary by language). They will check the employer's status for you.

Step 2: Gather your documents

Bring or prepare:

• Your employment contract (근로계약서)
• Pay slips or bank statements showing the wages owed
• The insolvency confirmation document
• Your Alien Registration Card (외국인등록증) or other ID

If you do not have a written contract, other evidence works: payroll records, coworker statements, Kakao or text message correspondence with the employer about work, photos of your workplace, or any official document that names your employer and your work. Do not assume you are disqualified because you lack paperwork. Bring what you have.

Step 3: File the claim

File with the Korea Workers' Compensation and Welfare Service (근로복지공단):

• Online: comwel.or.kr
• In person: visit your nearest 근로복지공단 branch office. The site lists locations by region.
• By phone first: call 1350 to get guidance on your specific situation before filing

There is no filing fee. Processing time varies, but claims with clear insolvency documentation are typically resolved within a few months.

Step 4: Receive payment

Once 근로복지공단 approves your claim, they pay you directly by bank transfer. The agency then pursues the employer separately. You do not need to be involved in that recovery process.

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If your employer is not insolvent: the wage-arrears complaint

If your employer is still operating and just will not pay, you file a wage-arrears complaint (임금체불 진정) with the Ministry of Employment and Labor (고용노동부) or your local labor office (지방고용노동관서). You can file:

• Online: minwon.moel.go.kr
• In person: at the regional labor office closest to your workplace
• By phone: 1350

A labor supervisor (근로감독관) will contact both you and the employer. Most cases resolve through mediation. If the employer still refuses, the supervisor can refer the case for criminal prosecution. Unpaid wages are a criminal matter in Korea, not just a civil dispute. Employers who do not pay face up to 3 years in prison or a fine of up to 30 million KRW under Article 109 of the Labor Standards Act (근로기준법) (as of 2026, verify at law.go.kr).

This process is also available to foreign workers and undocumented workers. The same rules apply.

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Wage theft and E-9 / H-2 workers

Wage theft is not rare in Korea's E-9 (non-professional employment) and H-2 (overseas Korean working) communities. A MOEL inspection cited in research found unpaid wages at the majority of worksites checked.

Most workers affected do not know the Wage Guarantee Fund exists. Many fear that filing a complaint will lead to deportation. Some are told by employers that foreign workers have no rights. All three of these are wrong.

The rights under the Wage Claim Guarantee Act exist for you regardless of how you arrived in Korea, what your current visa status is, and whether your employer told you otherwise.

If you are in a situation where wages have not been paid:

1. Do not leave the job before documenting your working history. Collect pay slips, contracts, and any written communication from the employer.
2. Call 1350. The helpline is free, multilingual, and confidential.
3. File quickly. The 3-year window sounds long, but evidence disappears and employers can become harder to trace.

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Getting free legal help

If you need help beyond the helpline:

Legal Aid Corporation (대한법률구조공단) Free legal representation for lower-income workers. Foreign residents are eligible. Website: klac.or.kr. Call 132 (Korean) or visit in person.

1350 MOEL Multilingual Helpline Free consultation in English, Vietnamese, Chinese, Indonesian, Filipino, Russian, Thai, and Khmer. The first call to understand your situation and options costs nothing.

Local labor office (지방고용노동관서) Every major city has one. Staff can accept your complaint, explain your rights, and initiate the process for free.

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What to do next

1. Identify which situation applies to you: insolvent employer (체당금 path) or solvent employer who will not pay (wage-arrears complaint path). Not sure? Call 1350.
2. Collect your evidence now: employment contract, pay slips, bank statements, any written communication with your employer.
3. If your employer is insolvent, go to comwel.or.kr or call 1350 to begin the 체당금 claim.
4. If your employer is still operating, file a wage-arrears complaint at minwon.moel.go.kr or in person at the nearest labor office.
5. If you are leaving Korea soon, file before you go. You can also file from abroad at comwel.or.kr, but gathering evidence is much easier while you are still here.

For the broader picture of what you are owed when leaving a job in Korea, including severance pay rules and how to calculate your 퇴직금, see the Severance Pay Guide.

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FAQ

Can I use the Wage Guarantee Fund if I am a foreign worker or undocumented?

Yes. The Wage Claim Guarantee Act does not restrict eligibility by nationality or visa status. Foreign workers and undocumented workers can file a 체당금 claim on the same basis as Korean citizens. A 2024 MOEL FAQ explicitly confirms this. Your immigration status is not checked as part of the claim process, and filing a claim does not notify immigration authorities.

What is the difference between the Wage Guarantee Fund and a regular wage complaint?

The Wage Guarantee Fund (체당금) applies only when your employer is insolvent: they have filed for bankruptcy or a court or the labor authority has formally confirmed they cannot pay. In that situation, the government pays you directly and then chases the employer. A regular wage-arrears complaint (임금체불 진정) is used when your employer is still operating but simply refuses to pay. Use the complaint process first if your employer is still in business. If your employer later becomes insolvent during that process, you can switch to a 체당금 claim.

How much can I recover?

The fund covers up to 3 months of unpaid wages, subject to a statutory monthly cap that MOEL sets each year and adjusts by worker age. The cap means you will not recover unlimited wages: if your monthly wage exceeds the cap, only the capped amount is paid for each month. The Wage Claim Guarantee Act also covers unpaid retirement allowance (severance) under the same scheme, within separate caps. Check the current year's cap figures at comwel.or.kr or by calling 1350.

What documents do I need to file a claim?

You will need: your employment contract (근로계약서), pay slips or bank statements proving the employment relationship and the wages owed, proof that your employer is insolvent (a bankruptcy filing notice, court ruling, or the official determination from the labor authority), and your Alien Registration Card (외국인등록증) or other ID. If you do not have written employment records, statements from coworkers or other evidence of the working relationship are also accepted. Call 1350 for help gathering documents in your language.

My employer went bankrupt while still owing me wages. What do I do first?

Call 1350 (the MOEL multilingual helpline) to confirm the insolvency status of your employer and get guidance in your language. Then file a 체당금 claim with the Korea Workers' Compensation and Welfare Service (근로복지공단) at comwel.or.kr or at your nearest 근로복지공단 office. Bring or upload proof of employment and the unpaid amounts. The agency will verify the insolvency, calculate the covered amount, pay you directly, and then pursue the employer.

Can I still claim if I already left Korea?

Yes. The 3-year window for filing runs from the date the wages were due, not from when you left Korea. You can file online at comwel.or.kr from abroad, or authorize a representative in Korea to file on your behalf. Keep your employment contract, pay slips, and bank statements. If the amount claimed is significant, the Legal Aid Corporation (대한법률구조공단) at klac.or.kr provides free legal help for lower-income workers, including foreigners.

Does filing a claim affect my visa or risk deportation?

No. The 체당금 claim process runs through MOEL and 근로복지공단, not immigration. These agencies do not share your claim information with the Korea Immigration Service for enforcement purposes. Undocumented workers have successfully claimed 체당금 without deportation as a result of filing. Your right to wages is separate from your immigration status.

@misc{seoulstart-korea-unpaid-wage-guarantee-fund-guide,
  author = {{Seoulstart Editorial Team}},
  title = {{Unpaid Wage Guarantee Fund (체당금) in Korea for Foreign Workers}},
  year = {2026},
  publisher = {Seoulstart},
  url = {https://seoulstart.com/guides/korea-unpaid-wage-guarantee-fund-guide},
  note = {Last updated May 28, 2026}
}