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N. Korea Applies Wage Surcharge at Gaeseong

Written: 2015-04-15 13:23:47Updated: 2015-04-16 11:46:23

N. Korea Applies Wage Surcharge at Gaeseong

Amid the battle over wages at the inter-Korean Gaeseong Industrial Complex, it has been revealed that North Korea has been applying a surcharge to South Korean companies who delay wage payments.

An official of the Ministry of Unification said Wednesday that the North began applying the surcharge in 2009, a year after it informed Seoul of its unilateral rule change. 

Under the rule, South Korean companies at the inter-Korean complex are required to pay a daily surcharge to the North Korean government equivalent to zero-point-five percent of any delayed salary payments. 
 
The surcharge can be applied over the course of 30 days, meaning a company that delays paying wages for a month must pay 15 percent of the wage to Pyongyang. 
 
The basic principle of the ministry has been that any rules regarding wages at Gaeseong should be made through mutual agreement. It is uncertain whether the ministry raised objections to the North for the unilateral implementation of the surcharge rule. 

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