Hagwon Hub
Legal disclaimer: This guide is for general informational purposes only and does not constitute legal or immigration advice. Wage claims, the government substitute payment, and visa status each depend on specific facts, and the rules changed twice in 2026. Anyone whose academy has closed or stopped paying should contact the Ministry of Employment and Labor counseling line on 1350, the Korea Workers' Compensation and Welfare Service on 1588-0075, and the Korea Immigration Contact Center on 1345, or consult a certified labor attorney (공인노무사) before acting.
This guide covers: what actually happens to a teacher's money when an academy stops paying or shuts its doors, the legal deadlines an employer has already broken, how severance survives a closure, how a complaint at the labor office turns into a document that unlocks government money, the two kinds of government substitute payment (대지급금) and who qualifies for each, the 2026 caps including the August 2026 expansion, the deadlines that quietly end claims, what happens to health insurance and pension, what happens to an E-2 visa when the employer disappears, the evidence worth collecting today, and what academy operators can do to avoid ending up on the wrong side of all of this.
What happens when an academy stops paying
Short answer: The debt does not disappear when the academy does. Unpaid wages and severance remain the owner's legal obligation, and if the owner cannot or will not pay, Korea runs a government fund that pays a capped portion on the owner's behalf and then chases the owner for it. The route to that money runs through a complaint at the local labor office, so the first move is the same whether the academy is struggling, closed, or simply silent.
This matters because many teachers assume that a closed business means a lost claim, and leave Korea without filing anything. The fund exists precisely for the case where the employer has no money.
Academy failures usually follow a recognizable pattern: a payday slips by a week, then a month, then the owner promises a lump sum "after the new semester," and eventually the doors close. Each stage has a different practical answer.
| Situation | What it means legally | Realistic first step |
|---|---|---|
| Pay is late but the academy is operating | Wages must be paid in full at least monthly on a fixed date. A late payday is already a violation. | Ask in writing for a payment date, keep records, and call 1350 if the date passes. |
| Several months unpaid, teacher still employed | Wage arrears (임금체불). A current employee can file a complaint without resigning. | File a complaint with the labor office. A simplified substitute payment may be available even while still employed. |
| Teacher has left and final pay was not settled | All money due on departure must be paid within 14 days. | File a complaint with the labor office once the 14 days have passed. |
| Academy has closed and the owner cannot be reached | Wage arrears plus possible grounds for a ministry finding that the business is insolvent. | File a complaint, request the arrears confirmation, and ask about the insolvency route. |
| Owner has filed for bankruptcy or rehabilitation | Court proceedings are a direct trigger for the insolvency substitute payment. | Contact the Korea Workers' Compensation and Welfare Service (근로복지공단) about a claim. |
The rules an unpaid employer has already broken
Short answer: Under the Labor Standards Act, wages must be paid in full, in money, at least once a month on a fixed date, and everything owed on departure must be paid within 14 days. Wage claims expire after three years. From October 8, 2026, non-payment carries up to five years imprisonment or a fine of up to ₩50 million, although prosecution generally cannot proceed against the worker's express wishes.
These rules apply at every workplace size. The headcount threshold that switches off overtime premiums at small academies, explained in the guide to unpaid overtime, does not switch off the duty to pay.
The core provisions
| Rule | Where it comes from | What it means for a teacher |
|---|---|---|
| Full payment, at least monthly, on a fixed date | Labor Standards Act Article 43 | A payday that passes without full payment is a violation, not a courtesy delay. |
| Settlement within 14 days of leaving | Article 36 | Final salary, unused leave pay and other money must be paid within 14 days unless both sides agree to extend. |
| Late-payment interest | Article 37 | Interest runs on unpaid final wages and lump-sum retirement benefits after the 14th day, at a rate set by decree. |
| Priority over other creditors | Article 38 | The last three months of wages rank ahead of mortgages, taxes and other debts when the owner's assets are divided. |
| Employment certificate on request | Article 39 | Even after leaving, a teacher can ask for a certificate of employment period, duties and wages, and it must be issued. |
| Three-year limitation | Article 49 | Each unpaid amount expires three years after it fell due. |
| Criminal penalty | Article 107, as amended April 7, 2026, effective October 8, 2026 | Up to five years imprisonment or a ₩50 million fine, but generally not prosecuted if the worker expressly does not want it. |
The last point has a practical consequence. Because a prosecution generally needs the worker's consent to proceed, owners often offer partial payment in exchange for the teacher withdrawing the complaint or stating that they do not want punishment. That is a negotiation, and it is worth understanding what is being given up before signing anything.
Practical tip: Never sign a statement that the matter is settled (합의서) or that punishment is not wanted (처벌불원서) until the money has actually arrived in the bank account. A promise to pay later is not payment, and a withdrawn complaint is hard to restart.
Severance survives the closure
Severance (퇴직금) is owed after one year of continuous service at 15 or more hours a week, at any workplace size, and it falls due on departure like any other final payment. A closure ends the employment, so a teacher who has passed the one-year mark is owed severance on the closure date even if the contract had months left to run. The calculation is explained in the guide to severance pay. Retirement benefit claims carry the same three-year limitation as wages.
Filing a complaint with the labor office
Short answer: A wage complaint (진정) is filed with the regional office of the Ministry of Employment and Labor that covers the academy's address, either in person or online through the ministry's Labor Portal. A labor inspector investigates, and where arrears are confirmed, the office can issue a wage arrears and employer confirmation (체불 임금등·사업주 확인서). That document is the key to the simplified government payment.
This is the step most teachers skip, and it is the step every other remedy depends on.
How the process runs
- Call 1350 first. The counseling line offers foreign-language support and can confirm which regional office covers the academy and what to bring.
- File the complaint. Online through the Labor Portal (labor.moel.go.kr) or at the regional office. The complaint names the employer, the academy address, the employment period, and the amounts owed by month.
- Attend the investigation. The inspector usually calls both sides in. Language support can be discussed in advance through 1350. Owners who have disappeared are dealt with on the documents.
- Ask for the confirmation. Where the arrears are confirmed and not paid, request the wage arrears and employer confirmation. It is the document that the simplified substitute payment relies on, and it is also useful for court or legal aid.
Practical tip: The complaint is far stronger with a month-by-month table of what was due and what arrived. Bank statements showing deposits, set against the contract salary, answer most of the inspector's questions before they are asked.
Filing while still employed
There is no requirement to resign before filing. The Wage Claim Guarantee Act specifically provides a substitute payment for workers whose contract has not ended. Whether to keep working at an academy that is not paying is a separate, practical decision, and it interacts with the visa questions covered below.
The government substitute payment: two kinds
Short answer: Under the Wage Claim Guarantee Act (임금채권보장법), the Minister of Employment and Labor pays unpaid wages and retirement benefits on the employer's behalf, then takes over the worker's claim against the employer. The payment is called 대지급금, and it was called 체당금 until the 2021 amendments renamed it. There are two kinds: the insolvency payment (도산대지급금), which follows a court insolvency process or a ministry finding that the business cannot pay, and the simplified payment (간이대지급금), which follows a court judgment or a labor office confirmation.
The difference matters because the two kinds have different triggers, different caps, and different deadlines. Many English-language guides still use the old name and the old figures.
| Insolvency payment (도산대지급금) | Simplified payment (간이대지급금) | |
|---|---|---|
| What triggers it | A rehabilitation decision, a bankruptcy declaration, or a ministry finding that the business is insolvent (도산등사실인정) | A final court judgment, payment order or conciliation, or a labor office wage arrears and employer confirmation |
| Wages covered | Last 6 months, for cases where the decision or finding comes on or after August 20, 2026 (previously last 3 months) | Last 3 months |
| Retirement benefits covered | Last 3 years | Last 3 years |
| Cap structure | Monthly caps by age at departure | Flat caps, ₩10 million in total |
| Available to current employees | No | Yes, under conditions, once per workplace |
| Typical academy case | The academy has closed and the owner has no assets or cannot be found | The academy is open or closed, and the arrears have been confirmed by the labor office |
Shutdown allowance (휴업수당) and pay during maternity leave are also covered within the same limits. Amounts paid under one kind are deducted from the other, so a teacher cannot collect twice for the same months, but can receive the simplified payment first and claim the remaining difference under the insolvency route if a finding follows.
Practical tip: For most hagwon teachers, the simplified payment is the realistic first target. It needs only the labor office confirmation, and it does not require proving that the business is insolvent.
Who qualifies
Short answer: Nationality and visa type are not conditions. The employer must be covered by the Act, which reaches almost all private businesses, and must have operated for at least six months. For the insolvency route, the workplace must have 300 or fewer regular workers and the business must be closed or closing and unable to pay. For the simplified route, the arrears must be confirmed by a judgment or a labor office confirmation, and current employees face an extra wage threshold.
The six-month condition is the one most likely to catch a teacher at a newly opened academy.
Conditions at a glance
| Condition | Insolvency payment | Simplified payment, after leaving | Simplified payment, still employed |
|---|---|---|---|
| Employer operated as a covered business | 6 months or more before the trigger event | 6 months or more up to the teacher's departure | 6 months or more up to the latest unpaid payday |
| Workplace size | 300 or fewer regular workers (for the ministry insolvency finding) | No upper limit stated | No upper limit stated |
| Proof of arrears | Court process or ministry insolvency finding | Court judgment, or labor office confirmation | Court judgment, or labor office confirmation |
| Timing of the teacher's action | Left between 1 year before and 3 years after the application date | Lawsuit within 2 years, or complaint within 1 year, of leaving | Lawsuit within 2 years, or complaint within 1 year, of the latest unpaid payday |
| Wage level | No condition | No condition | Contract wage below a ministry-set amount, reported as below 110 percent of the minimum wage |
What the ministry insolvency finding requires
Where there is no court bankruptcy, a departed worker can ask the ministry to find that the employer cannot pay. Under the Enforcement Decree, three things must all be true:
- Size: the business has 300 or fewer regular workers, which covers essentially every academy.
- Closure: the business has closed, or is in the process of closing, for example because its main activity has stopped for a month or more, its registration has been cancelled, or its main premises or assets have been seized.
- Inability to pay: for example, the owner's whereabouts have been unknown for a month or more, or, at a business with fewer than 10 regular workers, the owner has failed to pay within three months after the 14-day settlement deadline.
That last example fits a great many small academies. The application for this finding must be made within one year from the day after leaving.
Practical tip: The current-employee route is designed for low-wage workers, and the wage threshold means many E-2 salaries will not qualify while still employed. Once employment has ended, that wage condition no longer applies, so a teacher who has left should not assume the threshold rules them out.
How much: the 2026 caps
Short answer: The simplified payment is capped at ₩7 million for wages and ₩7 million for retirement benefits, with ₩10 million in total. The insolvency payment uses monthly caps that depend on age at departure, from ₩2.2 million a month for teachers under 30 up to ₩3.5 million for those in their 40s. Since August 20, 2026, the insolvency payment covers up to six months of wages, raising the overall maximum from ₩21 million to ₩31.5 million.
For a typical teacher in their twenties, the age-based cap sits close to an ordinary hagwon salary, so the insolvency route can cover most of what is owed.
Simplified payment caps
| Item | Cap |
|---|---|
| Wages, shutdown allowance, maternity leave pay | ₩7,000,000 |
| Retirement benefits (departed workers only) | ₩7,000,000 |
| Total | ₩10,000,000 |
Insolvency payment monthly caps by age at departure
| Age at departure | Wages, per month | Retirement benefits, per year of service | Shutdown allowance, per month |
|---|---|---|---|
| Under 30 | ₩2,200,000 | ₩2,200,000 | ₩1,540,000 |
| 30 to 39 | ₩3,100,000 | ₩3,100,000 | ₩2,170,000 |
| 40 to 49 | ₩3,500,000 | ₩3,500,000 | ₩2,450,000 |
| 50 to 59 | ₩3,300,000 | ₩3,300,000 | ₩2,310,000 |
| 60 and over | ₩2,300,000 | ₩2,300,000 | ₩1,610,000 |
Maternity leave pay is capped at ₩3.1 million a month regardless of age. These figures come from the ministry's cap notice as published on the National Law Information Center in October 2026.
A worked example
Consider a 28-year-old teacher on ₩2,500,000 a month at an academy that closed after paying nothing for the final four months, having employed the teacher for two years. Severance is roughly two months of average wages.
- Simplified route: the last three months of wages, capped at ₩7 million, plus severance capped at ₩7 million, with a ₩10 million ceiling overall.
- Insolvency route, decision on or after August 20, 2026: up to six months of wages at ₩2.2 million each, which covers all four unpaid months at ₩2.2 million rather than ₩2.5 million, plus two years of severance at up to ₩2.2 million per year.
In both cases the gap between the cap and the real debt remains owed by the owner, and the teacher can still pursue it.
Practical tip: The cap is not the payment. The fund pays the lower of the cap and the amount actually confirmed as unpaid, so an accurate confirmation of every unpaid item, including unused leave pay and severance, is worth the effort.
The deadlines that end claims
Short answer: Several clocks run at once. Wages and severance expire three years after they fall due. The simplified payment needs a labor office complaint within one year of leaving and a claim within six months of the confirmation being issued. The ministry insolvency finding must be requested within one year of leaving, and the insolvency payment claimed within two years of the finding.
The six-month window after the confirmation is the one that catches teachers who have already left Korea.
| Clock | Length | Starts from |
|---|---|---|
| Final settlement by the employer | 14 days | The day of leaving |
| Wage and severance claims | 3 years | Each payday or due date |
| Labor office complaint for the simplified payment (departed worker) | 1 year | The day after leaving |
| Lawsuit for the simplified payment (departed worker) | 2 years | The day after leaving |
| Simplified payment claim, confirmation route | 6 months | First issue of the wage arrears and employer confirmation |
| Simplified payment claim, court route | 1 year | The judgment or equivalent |
| Request for ministry insolvency finding | 1 year | The day after leaving |
| Insolvency payment claim | 2 years | The court decision or ministry finding |
Practical tip: Put the confirmation's issue date and the date six months later in a phone calendar the day the document arrives. The claim itself is short. Missing the window is the expensive part.
Step by step: from unpaid wages to a substitute payment
Short answer: Collect evidence, call 1350, file a complaint, obtain the wage arrears and employer confirmation, claim the simplified payment at the Korea Workers' Compensation and Welfare Service, and, if the academy has closed, ask about the insolvency route for the remainder. Sort out visa status in parallel, not afterwards.
- Secure the evidence now. Download bank statements, screenshot messages with the owner, photograph the contract and pay slips, and save the academy's business registration details while the website and signs still exist.
- Write a demand. A short written message stating the months unpaid, the amount, and a date for payment creates a clear record. Keep it factual.
- Call 1350. Confirm the competent regional office, the documents needed, and interpretation options. The guide to English hotlines in Korea covers how to reach the English line.
- Call 1345 the same week. Confirm the visa options in the specific situation before the E-2 becomes a problem.
- File the complaint. Online through the Labor Portal or at the regional office, with a month-by-month table of amounts.
- Attend the investigation and request the confirmation. Ask for the wage arrears and employer confirmation once the arrears are established.
- Claim the simplified payment. Submit the claim to the Korea Workers' Compensation and Welfare Service, which administers the fund, within six months of the confirmation. The service's call center is 1588-0075.
- Ask about free labor attorney help. The Act allows eligible departed workers to receive help from a ministry-appointed certified labor attorney with the claim and fact-finding, with costs supported by the ministry.
- Pursue the insolvency route if the academy has closed. Ask the labor office about requesting a ministry insolvency finding within one year of leaving, which can unlock the higher, age-based caps and up to six months of wages.
- Keep claiming the balance. Whatever the fund does not cover remains owed by the owner. Legal aid and civil court remain options for the remainder.
Health insurance, pension and the other insurances
Short answer: When an academy closes, the teacher's workplace health insurance ends with the job, and a foreign resident staying six months or more is moved into the regional (local) health insurance system rather than left uninsured. Pension contributions the owner deducted but never paid are a separate problem that the National Pension Service can check. The insurance subscriber records are also the best evidence of how many people the academy really employed.
This matters because a closure can leave a teacher with a regional health insurance bill and a pension record that does not match their pay slips.
What to check
| Insurance | What happens on closure | What to do |
|---|---|---|
| National Health Insurance | Workplace coverage ends. Since July 16, 2019, foreigners residing six months or more must be enrolled, so coverage moves to regional subscription. | Check the NHIS app or call NHIS to confirm the change date and the first regional premium. |
| National Pension | Workplace subscription ends. Contributions shown on pay slips may not have been paid in. | Request a contribution record and compare it with pay slips. Unpaid deductions belong in the labor complaint. |
| Employment insurance | Coverage for foreign teachers depends on status and enrollment. | Check whether the teacher was ever enrolled before assuming any benefit is available. |
| Industrial accident insurance | Ends with the employment. | Matters mainly for injuries already sustained at work. |
Practical tip: Deductions on a pay slip prove what was taken from the salary, not what reached the insurer. Comparing the two records is one of the fastest ways to find money the owner kept, and the guide to the National Pension covers lump-sum refunds on leaving Korea.
What happens to an E-2 visa when the academy closes
Short answer: The E-2 does not end automatically on the day the academy closes, but it is tied to that employer, and the employer is required to report a departure to immigration within 15 days. The teacher's realistic options are to move to a new academy through a workplace change, to switch to job-seeker (D-10) status before the E-2 expires, or to leave Korea. Teaching for anyone else without the change being processed is unauthorized work.
The visa question usually decides the timetable for everything else, which is why it belongs in the first week, not the last.
The three routes
| Route | When it fits | Key points |
|---|---|---|
| Workplace change to a new academy | A new job is lined up | Under the Immigration Act, a workplace change needs prior permission or, for designated E-1 to E-7 holders, a report within 15 days. A release letter is generally not needed after a contract ends, and recruiter guidance indicates that proof of closure or wage arrears can be offered in place of one. Confirm the exact track with 1345. |
| Change to D-10 job-seeker status | No job yet, but the teacher wants to stay and search | Must be applied for while the E-2 is still valid. For former E-1 to E-7 holders, 6 months per grant and 1 year in total. Change of status fee ₩100,000. No teaching on D-10. |
| Leave Korea | The teacher does not want to stay | Wage claims and substitute payments can continue after departure, but deadlines still run and someone must be reachable for the labor office and the fund. |
The D-10 rules are explained in full in the guide to E-2, F-2 and D-10, including the October 2025 reform and why former E-2 holders remain on the shorter limits.
Staying for the wage case
Where a teacher must remain in Korea for a wage lawsuit, Korean-language practitioner guidance describes a miscellaneous (G-1) status that immigration can grant for the duration of litigation. It is discretionary, it generally does not permit work, and it requires documents showing the case is genuinely in progress. Anyone considering it should ask 1345 or a licensed immigration practitioner (행정사) before the current status runs out.
Practical tip: Ask the owner, or the labor office if the owner has vanished, for a certificate of employment (경력증명서) stating the employment period and the reason it ended. Under Article 39 of the Labor Standards Act, a former employer must issue one on request, and it is useful both for immigration and for the next employer.
Evidence worth collecting today
Short answer: The labor office decides on documents. The contract, bank statements, pay slips, messages with the owner, attendance or schedule records, the business registration number, and the insurance records together prove who the employer was, what was owed, and what was paid. Most of this becomes hard to obtain once the academy has closed.
Gathering it takes an evening, and it is the difference between a claim that moves quickly and one that stalls.
| Document | What it proves | Where to get it |
|---|---|---|
| Employment contract | Salary, start date, employer identity | Teacher's own copy, or a photo of the signed version |
| Bank statements | What was actually paid, and when | Banking app or branch |
| Pay slips (급여명세서) | Gross pay and deductions, including pension and health insurance | Employer, email, or messaging app |
| Messages with the owner | Admissions of non-payment and promises to pay | KakaoTalk and email, exported or screenshotted with dates |
| Schedules and attendance records | Hours worked | Timetables, sign-in sheets, the teacher's own log |
| Business registration details | Who the legal employer is | Contract, receipts, signage, the academy's registration |
| Insurance subscription records | Employment period and workplace size | NHIS and NPS |
| Alien registration card and passport copy | Identity and status | Teacher's own documents |
Practical tip: Messages from an owner saying the money will come "next month" are evidence, not reassurance. Export the chat with dates intact before the owner deletes the group or leaves it.
For academies
Short answer: An academy that is in trouble has fewer options than it thinks once wages are missed, because unpaid wages become a criminal matter and the government fund that pays teachers later recovers the money from the owner. The practical protections are early, honest communication, paying wages before other debts, and closing in an orderly way.
- Pay wages first. Wages rank ahead of most other debts, and the last three months rank ahead even of mortgages and taxes. Delaying wages to pay a supplier rarely ends well.
- Do not let paydays drift. A fixed monthly payday is a legal requirement. If cash flow is tight, say so in writing with a firm date rather than going silent.
- Settle within 14 days on closure. Final wages, unused leave pay and severance are all due within 14 days of each teacher's departure unless extended by agreement.
- Remember the fund will come back. When the government pays teachers on an owner's behalf, it takes over their claim and recovers it from the owner.
- Report departures to immigration. Employers of foreign workers must report a departure within 15 days.
- Help teachers move on. Issuing a certificate of employment and confirming the end of the contract in writing makes the workplace change or D-10 application straightforward and reduces disputes.
- Pay insurance contributions that were deducted. Keeping deductions without paying them in creates a second, separate problem with the insurers.
- Take advice early. A certified labor attorney or the 1350 line can explain the options before arrears build up.
Common problems and what causes them
Short answer: Most lost claims come from waiting: waiting for the owner's promise, waiting until after leaving Korea, or waiting until the visa has nearly expired. The table below pairs the usual problems with their causes and what tends to work.
| Problem | Cause | What works |
|---|---|---|
| Owner keeps promising payment "next month" | Cash flow problems or deliberate delay | A written demand with a date, then a complaint once it passes |
| Teacher left Korea without filing | Belief that a closed academy means no money | File through the labor office anyway, keeping deadlines and contact details in order |
| Simplified payment refused as late | Claim filed more than 6 months after the confirmation | Calendar the deadline the day the confirmation is issued |
| Not eligible while still employed | Salary above the current-employee wage threshold | Check eligibility again after the employment ends |
| Academy open less than six months | Fund requires six months of operation | Pursue the owner directly through the labor office and court |
| E-2 expired before the D-10 application | Waiting for back pay before dealing with status | Handle visa status in the first week, in parallel with the wage claim |
| Pension record shows gaps | Deductions taken but never paid in | Compare pay slips with the NPS record and include it in the complaint |
| Teacher signs a settlement for part payment | Pressure to withdraw the complaint | Sign only after the money has arrived, and only for what is understood |
Frequently asked questions
Can a teacher still get paid if the hagwon has closed?
Often, at least in part. The government substitute payment exists for exactly this case and pays a capped amount on the owner's behalf, then recovers it from the owner.
What is 체당금, and is it the same as 대지급금?
Yes. 체당금 was the earlier name for the substitute payment under the Wage Claim Guarantee Act, and it was renamed 대지급금 in the 2021 amendments.
Do foreign teachers qualify for the substitute payment?
Yes. Nationality and visa type are not conditions. The conditions concern the employer, the arrears and the timing.
How much can be paid in 2026?
The simplified payment is capped at ₩10 million in total. The insolvency payment uses age-based monthly caps, with an overall maximum of ₩31.5 million since August 20, 2026.
Is severance covered?
Yes. Both kinds cover up to the last three years of retirement benefits, within the caps.
Does the teacher have to quit before filing a complaint?
No. Current employees can file, and a simplified payment exists for current employees whose wages fall below a ministry-set threshold.
How long is there to claim unpaid wages?
Three years from each payday for the wages themselves, but the substitute payment has much shorter windows, including one year to file a complaint after leaving and six months to claim after the confirmation is issued.
Can the claim continue after leaving Korea?
The wage claim and the substitute payment do not depend on being in Korea, but the labor office and the fund need to be able to reach the teacher, and investigation steps are far easier before departure.
What happens to the E-2 when the academy closes?
It stays tied to that employer. The teacher can move to a new academy through a workplace change, switch to D-10 before the E-2 expires, or leave. Confirm the details with 1345.
Is a release letter needed if the academy closed?
A release letter is generally not needed once a contract has ended, and recruiter guidance indicates that proof of closure or wage arrears can be offered instead. Immigration decides case by case, so confirm with 1345.
Who pays the substitute payment?
The Minister of Employment and Labor pays from the wage claim guarantee fund, administered by the Korea Workers' Compensation and Welfare Service (1588-0075).
The short version
When an academy stops paying, the debt stays with the owner, and Korea's wage guarantee fund stands behind it. The fund pays a capped amount when the owner cannot, and then pursues the owner itself.
The simplified payment, capped at ₩10 million, needs only a labor office confirmation of the arrears. The insolvency payment, with age-based caps and up to six months of wages since August 20, 2026, follows a court process or a ministry finding that the business cannot pay. Both require the academy to have operated for at least six months.
The visa runs on a separate clock. The E-2 is tied to the employer, the D-10 must be requested while the E-2 is still valid, and teaching anywhere else without the change being processed is unauthorized work.
The single most useful action is to file a complaint with the labor office as soon as a payday has been missed and a written request has gone unanswered, and to call 1345 the same week.
Sources
- National Law Information Center, Wage Claim Guarantee Act as amended February 19, 2026 and in force August 20, 2026: the five payment triggers, six months of wages for insolvency cases, three years of retirement benefits, payments to current employees, and subrogation (Korean)
- National Law Information Center, Enforcement Decree of the Wage Claim Guarantee Act: insolvency finding conditions, six-month operation rule, eligibility windows, and claim deadlines (Korean)
- National Law Information Center, Ministry of Employment and Labor notice on substitute payment caps: age-based monthly caps and the ₩10 million simplified payment cap (Korean)
- KDI Economic Information and Education Center, Ministry of Employment and Labor announcement of August 19, 2026 extending insolvency payments to six months of wages and raising the maximum to ₩31.5 million (Korean)
- National Law Information Center, Labor Standards Act in force October 8, 2026: 14-day settlement, wage priority, employment certificates, monthly payment, three-year limitation, and penalties (Korean)
- Daeryun Law Firm, practical guide to substitute payments including the current-employee wage threshold and the free labor attorney support (Korean)
- Insight Lab, summary of the complaint, confirmation and claim sequence and the 2026 caps (Korean)
- Korea Workers' Compensation and Welfare Service, wage claim guarantee program page (Korean)
- National Law Information Center, Immigration Act: employer reporting within 15 days and workplace change rules (Korean)
- Korvia, E-2 letter of release guide, including closure and wage arrears documentation and the 15-day report (Korean)
- LawTalk, practitioner guide to the G-1 status for people who must remain in Korea for litigation, including wage cases (Korean)
- National Health Insurance Service, mandatory enrollment for foreign residents of six months or more from July 16, 2019 (English)
- Ministry of Employment and Labor, Labor Portal for online complaints (Korean)
- Ministry of Employment and Labor customer counseling center (Korean)
- Ministry of Employment and Labor counseling line: 1350
- Korea Workers' Compensation and Welfare Service call center: 1588-0075
- Korea Immigration Contact Center: 1345
For how working hours and overtime are counted before a claim is filed, see the guide to unpaid overtime. For how severance is calculated, see the guide to severance pay. For the D-10 job-seeker route in detail, see the guide to E-2, F-2 and D-10 visas. For pension refunds on leaving Korea, see the guide to the National Pension, and for reaching 1350 and 1345 in English, see the guide to English hotlines in Korea.