Notices

The number of complaints filed by workers suffering from illegal worker dispatch, disguised subcontracting, and other forms of labor exploitation has increased 2.7-fold over the past three years. Despite this sharp increase, the prosecution rate has continued to decline. In particular, the unauthorized dispatch of workers remains a persistent problem. All 79 cases of unauthorized dispatch identified in 2025 involved in-house subcontracting arrangements.

Complaints Reach 174 in the First Half of 2026, Following a Record 292 Cases in 2025

Annual complaints increased from 108 in 2022 to 292 in 2025, with 2026 potentially setting another record.

According to data on complaints concerning illegal worker dispatch and disguised subcontracting submitted by the Ministry of Employment and Labor (MOEL) to Rep. Park Hae-cheol of the Democratic Party of Korea, a member of the National Assembly's Climate, Energy, Environment and Labor Committee, the number of complaints has risen sharply. The data, obtained by Labor Today on October 12, show that complaints increased from 108 in 2022 to 124 in 2023, 193 in 2024, and 292 in 2025. By the end of June 2026, another 174 complaints had already been filed, exceeding half of the total recorded during the previous year.

Despite the growing number of complaints, relatively few cases have resulted in prosecution. In 2024, 41 of the 193 complaints resulted in prosecution, representing 21.2%. In 2025, 54 of the 292 complaints led to prosecution, equivalent to 18.5%. During the first half of 2026, only 12 of the 174 complaints resulted in prosecution, bringing the rate down to just 6.9%.

Administrative sanctions and corrective measures have also been limited. In 2025, the reported outcomes included 14 cases in which corrective measures were completed and only one case involving an administrative disposition. Meanwhile, 179 cases were classified as involving no violation, and 348 were categorized as other outcomes. No administrative fines were imposed. During the first half of 2026, only two cases resulted in completed corrective measures, with no administrative fines or administrative dispositions. Another 52 cases were classified as involving no violation, while 192 were categorized as other outcomes.

Unauthorized Worker Dispatch Remains the Most Common Violation

Unauthorized dispatch and violations of permitted dispatch work and duration ranked first and second, respectively.

Separate from the growing number of complaints, labor inspections conducted by MOEL have continued to uncover violations of the Act on the Protection, etc. of Temporary Agency Workers (Temporary Agency Workers Act). Among the various violations, unauthorized worker dispatch under Article 7, which requires businesses engaging in worker dispatch services to obtain government authorization, has consistently been the most frequently identified violation. Unauthorized dispatch occurs when a company supplies workers to another company without obtaining the legally required authorization to operate a worker dispatch business. Labor inspections identified 80 such cases in 2023, 71 in 2024, and 79 in 2025. Notably, all 79 unauthorized dispatch cases identified in 2025 involved in-house subcontracting arrangements. This suggests that the practice of using workers under arrangements formally described as subcontracting, but operating in substance as worker dispatch, remains widespread. The second most common category involved violations of Articles 5 and 6 of the Temporary Agency Workers Act, which regulate the types of work for which dispatched workers may be used and the permissible duration of dispatch arrangements.

Article 5 restricts worker dispatch to legally permitted categories of work, while Article 6 generally limits the initial dispatch period to one year, subject to statutory extension provisions and exceptions. Violations involving unauthorized types of dispatch work or excessive dispatch periods totaled 63 in 2023, 54 in 2024, and 47 in 2025, consistently ranking as the second most common category over the three-year period. These figures indicate that employers continue to use dispatched workers for prohibited types of work or beyond the legally permitted periods.

Lawmaker Calls for Stronger Enforcement Against Disguised Subcontracting and Unauthorized Dispatch Rep. Park Hae-cheol expressed concern that the declining prosecution rate may reflect shortcomings in the government's enforcement efforts. He stated:

"Many workers are turning to labor authorities in an effort to escape exploitative intermediary employment arrangements. However, the fact that the prosecution rate has fallen to approximately 6% raises serious questions about whether labor administration is adequately protecting these workers." He further emphasized the need for stronger enforcement: "Given the prevalence of unauthorized worker dispatch through in-house subcontracting arrangements, the Ministry of Employment and Labor must conduct thorough inspections and pursue strict criminal enforcement to eradicate disguised subcontracting and unauthorized worker dispatch businesses."

Reporter: Kang Han-nim Published: October 13, 2026

Source: Labor Today  Website: https://www.labortoday.co.kr