Service connects 340,000 daily workers with 190,000 worksites, blocking wage theft at the source
KB Kookmin Bank has unveiled a wage payment service for daily and platform workers as part of its push to expand inclusive finance.
The bank announced Monday it has partnered with Ilgaja, a platform that connects daily workers with short-term jobs, to launch the "Zero Wage Theft Instant Transfer" service for gig workers and daily laborers. KB Kookmin Bank and Ilgaja plan to operate the service for 340,000 daily workers and approximately 190,000 worksites nationwide.
The service uses a firm banking system within the Ilgaja platform to transfer wages directly from employers to workers' bank accounts. Staffing agency fees are settled separately with employment agencies, ensuring a clear distinction between wages and placement fees.
As short-term platform-based work in delivery, construction, events and logistics has grown in recent years, establishing a stable wage payment system for gig workers and daily laborers has emerged as a pressing challenge. The two companies plan to expand the service's coverage and introduce additional features to improve financial convenience for gig workers and daily laborers.
The service also includes tools that allow businesses to handle labor and tax administration online — covering digital employment contracts, electronic signatures, digital pay stubs, placement fee settlements and electronic tax invoices. KB Kookmin Bank expects the service to improve transparency and reliability in the wage payment process while helping prevent wage theft and protect workers' rights.
"We will continue to expand our inclusive finance efforts to protect the rights of customers who are vulnerable to financial blind spots and improve their access to financial services," a KB Kookmin Bank official said.
forest@heraldcorp.com
