Probe targets agency and two affiliates in Gangnam; complaints filed since April
'Will check cash flow and act swiftly,' official says
The Ministry of Employment and Labor has launched a comprehensive investigation and special inspection of three entertainment agencies in Seoul's Gangnam district following a string of unpaid-wage complaints. The move is a preemptive step to prevent wage arrears from spreading beyond the artists on their rosters to employees and production staff.
The ministry's Seoul Gangnam District Office said Tuesday it has been conducting sequential full-scale wage inspections since May on one Gangnam-based entertainment agency and two of its affiliates — three companies in total — after deteriorating business conditions led to unpaid wages.
Multiple complaints over unpaid wages at the agencies were filed beginning in April. In response, the Seoul Gangnam District Office launched a comprehensive inspection that goes beyond individual cases to verify whether workers who have not filed complaints have also been affected.
A comprehensive wage inspection requires authorities, once a worker reports unpaid wages, to check not only that worker's case but also whether other employees at the same workplace have been similarly affected. The ministry said it intends to use the process to determine the full scale of the arrears and prevent further harm.
The Seoul Gangnam District Office plans to closely examine the companies' cash flow and ability to pay during the investigation, focusing its administrative efforts on securing payment of the outstanding wages.
"We will do our utmost to ensure that wages — the most fundamental right of workers — are paid properly," said Min Gwang-je, head of the Seoul Gangnam District Office. "We are closely monitoring the situation to protect the livelihoods of workers at these agencies, which are struggling amid worsening business conditions, and will take strict and swift action on any findings in accordance with relevant laws and procedures."
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