VZCZCXYZ0000
RR RUEHWEB

DE RUEHUL #3318/01 1420839
ZNR UUUUU ZZH
R 220839Z MAY 07
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC 0461
INFO RUEHC/DEPT OF LABOR WASHINGTON DC
RHMFIUU/COMUSKOREA J5 SEOUL KOR
RHMFIUU/COMUSKOREA J2 SEOUL KOR
RHMFIUU/COMUSKOREA SCJS SEOUL KOR

UNCLAS SEOUL 003318 
 
SIPDIS 
 
SIPDIS 
 
DEPT OF STATE FOR DRL/ILCSR ATTN: MARK MITTELHAUSER, EAP/K ATTN: 
ROBERT ARMSTRONG, 
DEPT OF LABOR FOR DOL/ILAB ATTN: KAREN TRAVIS AND MIHAIL SEROKA 
 
E.O. 12958: N/A 
TAGS: KS ECIN ECON ELAB ETRD EAID
SUBJECT: FORCED LABOR AND CHILD LABOR INFORMATION FOR MANDATORY 
US-KOREA FREE TRADE AGREEMENT/TPA REPORTING REQUIREMENTS 
 
REF: A. STATE 48091  B. Seoul 587 
 
¶1.  (U) The following responses are keyed to questions posed in ref 
¶A. 
 
Nature and Incidence 
 
¶2.  (U) Question:  Does forced labor exist in the country?  Are men, 
women or children exploited through forced labor?  Please indicate 
the sectors and locations in which persons are engaged in forced 
labor.  Please also indicate the products that persons involved in 
forced labor mine, produce, or manufacture.  Please be specific and 
provide all information for men, women and children separately, 
noting gender and age-specific information whenever possible. 
Provide details on the terms of employment or the working conditions 
that characterize the work as forced labor. For example, are persons 
confined to the workplace; are wages withheld or has the employer 
refused to pay employees; have the workers' passports or identity 
documents been withheld; has the employer threatened to denounce the 
worker to authorities; or is the worker paying off a debt that has 
been incurred with the employer?  Based on these examples, do the 
conditions of workers employed by South Korean companies in the 
North Korean enterprise zones qualify as forced labor?  Please also 
provide information on the issue of debt bondage in the sex industry 
in South Korea. 
 
-For the last three years since the Ministry of Labor (MOL) began 
collecting the data, (from 2004 to 2006), workplace labor inspectors 
reported no violations of Article 7 (Prohibition on Forced Labor) of 
the Labor Standards Act. 
 
-As of 2006, The Ministry of Education reported that the percentage 
of school enrollment of children in Korea (the total number of 
students divided by the number of children of school-age) was 99 
percent in elementary school, 95.9 percent in middle school, and 91 
percent in high school.  These statistics may indicate that there is 
relatively little opportunity for children to be engaged in forced 
labor given the high rate of school attendance.  There are no 
reports from the media or NGOs about child labor in Korea. 
 
-Between January 1 and May 8, 2007, the MOL said that eight cases of 
forced labor were either concluded with administrative measures 
(five) or dropped (i.e. no prosecution) (three).  These eight cases 
were filed individually by one woman, six men and one unidentified 
person.  No cases involving minors were reported. 
 
-The Ministry of Unification reported that the number of the North 
Korean workers at the Kaesong Industrial Complex (KIC) amounted to 
13,561 as of May 3, 2007.  The average age was 31.2 and 80 percent 
of the workers were female and 20 percent were male. 
 
-Although North Korean workers at KIC do not enjoy the same benefits 
and privileges as South Korean workers employed in the South, the 
working conditions at KIC are generally regarded among the best in 
North Korea and employment in KIC is highly sought after by North 
Korean workers.  There are reports that workers do not receive their 
pay directly and several types of deductions are withheld by the 
DPRK administrators of the KIC before the pay is distributed to the 
workers. 
 
-The MOL reported that the average wage of North Korean workers at 
KIC is USD 60.3 which is two to three times higher than that of 
North Korean workers in general.  According to the labor regulations 
at KIC, working conditions guarantee the following: a 48-hour work 
week; no work on Sundays or holidays; receipt of the minimum wage of 
USD 50 per month; female workers are eligible to receive maternity 
leave of up to 150 days and gender discrimination is prohibited. 
 
¶3.  (U) Question:  How do individuals become involved in forced 
labor? Are individuals tricked through false promises of fair 
employment?  Are persons trafficked into forced labor? Are certain 
groups of persons more at risk of being exploited in forced labor 
(e.g. women and children, boys versus girls, certain ethnic groups, 
refugees, rural or urban areas, migrant workers, etc.)? 
 
-For the last three years since the Ministry of Labor (MOL) began 
collecting the data, (from 2004 to 2006), workplace labor inspectors 
reported no violations of Article 7 (Prohibition on Forced Labor) of 
the Labor Standards Act. 
 
-Migrant workers are an area of concern as potential victims of 
forced labor.  In ref. B, post reported that the MOL had yet to 
acknowledge trafficking concerns in the labor force, especially 
among foreign workers.  The MOL reported that over 1,800 migrant 
workers filed claims of delayed payment totaling 4.5 billion won 
 
(USD 4.6 million), although the actual number of employers who 
withheld payment was likely much higher.  Noting that there are an 
estimated 190,000 illegal migrant workers in South Korea, the UN 
Special Envoy on Human Rights of Migrants said it was likely that 
many of these workers' human rights were not fully protected given 
their illegal status in the country.  During the parliamentary audit 
in October 2006, over 81 percent of foreign workers were found to 
have been suffering from delayed payments, excessive working hours, 
dangerous working conditions or physical assault from employers. 
Although detailed statistics are not available, the overwhelming 
majority of foreign workers are male adults from Mongolia, China, 
the Philippines, Burma, Bangladesh and other Southeast-Asian and 
South-Asian countries. 
 
-Most foreign workers originally came to Korea with legitimate work 
visas (either via the former employee trainee system or the current 
employment permit system).  At the completion of their legal work 
period in Korea, most workers choose to stay and work illegally, 
often earning more money than when they were working under the legal 
system.  Many of these foreign workers are employed in the 
construction and manufacturing industries.  Foreign workers are 
employed at both large and small companies. 
 
-There continue to be numerous reports from NGOs of foreign women 
being subjected to forced-work conditions in bars, restaurants and 
entertainment venues.  Since the anti-prostitution laws were passed 
in 2004, employers began to move away from traditional prostitution 
rings to other forms of debt bondage.  Many women from the 
Philippines are brought to Korea thinking they will work as an 
entertainer (singer or dancer) in a bar and then forced to sell 
expensive drinks to customers.  Some of these businesses also force 
the women into prostitution as a faster means of paying off their 
debt. 
 
¶4.  (U) Question:  Are any estimates or reliable numbers available 
as to the extent or magnitude of the problem?   What is (are) the 
source(s) of available information on forced labor? How reliable are 
the numbers and these sources? 
 
-Information provided by the MOL on the observance or violation of 
laws on the ban of forced labor was collected from Nosanuri, the 
computer network of the Ministry of Labor established in 2002. 
 
-Although the MOL has developed a comprehensive electronic tracking 
system, there remains a lack of reports of forced labor in the ROK. 
Counselors at the Migrant Workers Center told poloff that there are 
occasionally reports from foreign workers that Korean employers use 
elements of force in the workplace; the most common form being 
withholding the workers passport as a means to keep the employee 
linked to the company.  The main problem in Korea is that foreign 
workers are willing to tolerate some less severe forms of forced 
labor in order to keep their job and maintain a decent income. 
Foreign migrant workers are more likely to switch employers rather 
than report forced labor to the MOL or police.  Given the relatively 
decent working conditions throughout the country, there are only a 
very limited number of NGOs that follow labor issues.  This is also 
partly due to the strong presence of labor unions in most 
workplaces.  Therefore, there is very little information available 
about forced labor in Korea although anecdotal reports are limited. 
 
Forced Labor Laws and Enforcement 
 
¶5.  (U) Question:  What law or laws prohibit forced labor or related 
activities, such as laws against slavery, bonded labor, trafficking, 
or economic exploitation? Have there been any recent updates to such 
laws? Please describe in detail.  Are the laws sufficiently 
developed to cover forced labor in its various forms? 
 
-Article 12 of the ROK Constitution provides for the personal 
liberty and prohibits forced labor.  The Labor Standards Act bans 
forced labor (Articles 7 and 107) and bonded labor (Articles 21 and 
114). 
 
-Laws to protect juveniles from sexual abuse and sexual exploitation 
and laws that protect victims of abuse or prostitution have been 
enacted and regulate a broad range of forced labor situations. 
 
-Laws on the prevention of the sex trade and laws on the punishment 
of mediation of the sex trade are special laws enacted in 2004 and 
2005, respectively, to prevent sexual exploitation and human 
trafficking. 
 
-ROK Constitution Article 12 Paragraph 1 (Prohibition of Forced 
Labor) says: "Any citizen shall not be subject to forced labor 
unless pursuant to laws and legitimate procedures." 
 
 
-The Labor Standards Act Article 7 (Prohibition of Forced Labor) 
says: "An employer cannot compel a worker to work against his/her 
free will by unfairly confining the worker's spiritual and physical 
freedom, including the use of violence, menace or detention." 
 
¶6.  (U) Question:  Is forced labor by children specifically 
prohibited? 
 
-Article 7 of the Labor Standards Act prohibits forced labor.  In 
particular, Article 67 provides that a person in parental authority 
or a guardian cannot enter into a labor contract on behalf of a 
minor.  Article 68 of the same Act provides that a minor can 
personally make a claim for wages, thereby strengthening the 
protection of minors. 
 
¶7.  (U) Question:  What exceptions exist to laws prohibiting forced 
labor?  Are there any national obligations or instances where the 
government requires work without pay? 
 
-The Ministry of Justice (MOJ) reported that there are no laws 
whereby the government could require ordinary citizens to work 
without pay. 
 
-Pursuant to Article 26 of the Military Service Law, except for the 
soldiers on active duty, all others soldiers can be temporarily 
recruited as public service workers to work as staff for 
administrative agencies, volunteers for international cooperation 
activities, or for artistic or sports activities. 
 
-Furthermore, inmates can be involved in work outside of the prison 
pursuant to Article 67 of the Criminal Code and the Article 35 of 
the Act on Penal Execution of sentence, or carry out work 
commissioned by the private sector pursuant to the Article 3 of the 
Act on the establishment and operation of privately-managed prisons. 
 
 
¶8.  (U) Question:  What agency or agencies are responsible for 
implementing and enforcing forced labor laws? 
 
-Labor inspectors from the Ministry of Labor carry out inspections 
at workplaces in order to prevent forced labor.  Labor inspectors 
have law enforcement authority and can detain and arrest employers 
who violate labor law.  Labor violators are referred to prosecutors 
from the Ministry of Justice for possible prosecution. 
 
¶9.  (U) Question:  What legal remedies are available to government 
agencies that enforce forced labor laws (criminal penalties, civil 
fines, court orders), and are they adequate to punish and deter 
violations? 
 
-An employer who violates Article 7 (Prohibition of Forced Labor) of 
the Labor Standards Act is subject to up to five years of 
imprisonment and/or fines of up to 30 million won (approximately USD 
30,000) pursuant to Article 107 of the same Act. 
 
-An employer who violates Article 20 (Prohibition of 
Predetermination of Nonobservance) or Article 21 (Prohibition of 
Offsetting Wages against Advances) of the same Act is subject to 
fines of up to five million won (approximately USD 5,000) pursuant 
to Article 114 of the same Act. 
 
-Article 12 of the law on the protection of teenagers from sexual 
abuse provides that anyone who forces a teenager to offer sex for 
money is subject to a minimum of three years of imprisonment. 
 
-Paragraph 1 of Article 18 of the Act on the Punishment of Procuring 
Prostitution and Associated Acts provides that anyone who forces a 
person to offer sex for money by resorting to violence, intimidation 
or fraud is subject to up to ten years of imprisonment or fines of 
up to 100 million won (approximately USD 100,000). 
 
-Paragraph 3 of Article 18 of the same law provides that anyone who 
forces a person to engage in the sex trade by confinement or 
collective force, or who engages in human trafficking for the 
purpose of the sex trade is subject to a minimum of three years of 
imprisonment. 
 
-Since the enactment of the anti-prostitution/anti-human trafficking 
laws of 2004, there has been a significant decrease in the number of 
prostitutes and red-light districts in Korea (see para. 4 of ref B). 
 
 
¶10.  (U) Question:  What level of resources does the government 
devote to investigating forced labor cases throughout the country? 
 
How many inspectors does the government employ to address forced 
labor issues?  To the extent that the police or other institutions 
are involved, is funding for police or other institutions 
inadequate? 
 
-The Ministry of Labor has a total of 1,670 labor inspectors (1,625 
in 46 regional labor offices and 45 in the headquarters) who carry 
out inspections and attempt to prevent violation of the Labor 
Standards Act including forced labor practices at the workplace. 
 
-The MOL noted that the number of labor inspectors rose by 362 in 
2006 in an effort to improve the inspection activities at the 
workplace. 
 
¶11.  (U) Question:  To what extent are complaints investigated and 
violations addressed?  Please provide numbers of investigations, 
prosecutions, convictions, and sentences, including details on plea 
bargains and fines, if relevant and available.  Are those convicted 
serving the time sentenced; if not, why not? 
 
-The MOJ reported that they do not compile statistics relating 
specifically to forced labor cases.  The MOL reported that their 
labor inspectors carried out a total of 17,700 workplace inspections 
in 2006.  There were no prosecutions, convictions or sentences 
relating to forced labor as a result of these inspections. 
 
-There are occasionally cases in the media relating to wages that 
are withheld from employees or other unfair labor practices. 
Counselors at the Migrant Workers Center routinely work with 
employees who report various forms of forced work, mostly in the 
form of withheld passports.  These cases are dealt with by the 
counselors at the center directly and are typically not referred to 
labor inspectors.  Counselors at the center told poloff that many 
employers do not realize it is illegal to withhold a worker's 
passport and are generally responsive when advised to return the 
passport to the worker to avoid legal action. 
 
¶12.  (U) Question:  Please provide an update on government efforts 
to address the issue of debt bondage in the sex industry. 
 
-See ref B for full details relating to ROKG efforts to address debt 
bondage in the sex industry. 
 
¶13.  (U) Question:  Has the government provided awareness-raising 
and/or training activities for officials charged with enforcing 
forced labor laws? 
 
-The MOL said that new labor inspectors receive five weeks of 
official training before they assume their duties.  Four weeks are 
spent in the classroom learning ROKG policies and regulations and 
one week is spent on the job with regional labor inspectors. 
Although the training focuses on the articles in the Labor Standards 
Act (including those on forced labor) there is not a specific module 
or emphasis given to forced labor issues during the training. 
 
Government Policies and Programs 
 
¶14.  (U) Question:  Does the government have any policies in place 
to combat forced labor, such as national plans of action, etc.? 
Have government officials issued statements against forced labor? 
Please provide a brief history of government efforts to combat 
forced labor over the past 5 years. 
 
-ROKG officials have not issued any statements against forced labor, 
as they do not see forced labor as a serious problem in Korea. 
Therefore, there have not been any significant efforts to report in 
the past five years other than the ongoing labor inspections. 
 
-Following the upcoming release of the 2007 Trafficking in Persons 
report, we expect to see increased efforts to identify and prevent 
instances of forced labor in the country as this is one of the 
report's recommendations for the ROKG. 
 
¶15.  (U) Question:  Does the country have programs to combat forced 
labor?  Please describe.  These could include awareness raising 
efforts as well as efforts to assist individuals in or at-risk of 
forced labor (i.e. residence permits, access to health and education 
services and access to the regular labor market).  Has the 
government provided funding or other forms of support to foreign or 
domestic NGOs or IOs that have programs to combat forced labor? Does 
the government have the resources to aid individuals rescued from 
forced labor situations? 
 
-The Ministry of Government Administration and Home Affairs assists 
NGOs with labor-related projects.  It reviews the suitability of 
 
funding requests and provides money (up to one hundred million won 
per NGO [USD 100,000]).  The subjects of these projects include 
disabled people, female workers and foreign workers.  There were no 
reported instances of NGOs requesting funding for forced labor 
projects. 
 
-The MOL administers the Employment Permit System (EPS) which is the 
mechanism to bring foreign workers to Korea.  For a full description 
of this program, see para. 53 in ref B. 
 
Nature and Incidence of Child Labor 
 
¶16.  (U) Question:  What is the child labor situation in the 
country? Are there any estimates of the magnitude of the problem? In 
what sectors do children work and what tasks do they perform?  In 
what regions do they work?  Are children in the country involved in 
the worst forms of child labor? Specifically, are children in South 
Korea, both of Korean and outside origin, subjected to commercial 
sexual exploitation (pornography, prostitution, etc.)? 
 
-There are no reports of illegal child labor in Korea.  Pursuit of 
education by minors is a paramount concern in Korea and has led to 
extremely high rates of school attendance for children (elementary 
school: 99 percent; middle school: 95.9 percent; high school 91 
percent).  The worst forms of child labor are not an issue in Korea. 
 There are no reports of children being involved in sexual 
exploitation in Korea. 
 
-Juveniles (youths under the age of 18) often work part-time at fast 
food stores, restaurants, Internet cafes, convenience stores, and 
manufacturing companies.  The Labor Standards Act includes 
provisions to protect minor workers. 
 
Child Labor Laws and Enforcement 
 
¶17.  (U) Question:  What laws and regulations have been promulgated 
on child labor, such as minimum age(s) for employment or hazardous 
forms of work? If there is a minimum age for employment, is that age 
consistent with the age for completing educational requirements? 
Are there exceptions to the minimum age law?  What protections exist 
for older children who may legally work?  What laws govern the worst 
forms of child labor, such as child prostitution, the minimum age 
for admission to the military, etc?  What are the penalties for 
violations of relevant laws and regulations?  Do the country's laws 
define the worst forms of child labor or hazardous work as the ILO 
defines those terms?  If the country has ratified Convention 182, 
has it developed a list of occupations considered to be hazardous 
labor, as called for in article 4 of the convention? 
 
-The Labor Standards Act, Article 64 states "A person under the age 
of 15 shall not be employed as a worker." 
 
-According to the Basic Education Act Article 8, the period of 
compulsory education is six years in elementary education and three 
years in secondary education, meaning the minimum age for completing 
mandatory educational requirements is 16.  Therefore, the minimum 
age for employment (15) is not consistent with the age for 
completing educational requirements (16). 
 
-Exceptions to the minimum age law: According to the Labor Standards 
Act Article 64, Enforcement Decree Article 31, juveniles between 13 
and 15 years of age who hold an employment certificate issued by the 
Minister of Labor may be employed as workers.  As long as the 
purpose is to participate in artistic performances, employment 
certificates may also be issued to those under 13. 
 
-According to the Labor Standards Act, the employer should: have a 
"certificate of minors" when employing a worker below the age of 18 
(Article 64); abide by the limitations in their work hours (Article 
69) including night shifts and holiday shifts (Article 70) and 
overtime work (Article 71); and comply with their prohibition from 
working in a mining environment (Article 72). 
 
-The Labor Standards Act Enforcement Decree Article 31 Table 2 sets 
out a list of occupations where the employment of minor workers is 
prohibited, as called for in article 4 of Convention 182 (NOTE: The 
ROK ratified ILO Convention 182 concerning the Prohibition and 
Immediate Action for the Elimination of the Worst Forms of Child 
Labor in March 2001.  END NOTE). 
 
¶18.  (U) Question:  Has the government designated an authority to 
implement and enforce child labor laws?  What legal remedies are 
available to government agencies that enforce child labor laws 
(criminal penalties, civil fines, court orders), and are they 
adequate to punish and deter violations?  To what extent are 
 
complaints investigated and violations addressed?  What level of 
resources does the government devote to investigating child labor 
cases throughout the country (including the worst forms of child 
labor)?  How many inspectors/investigators does the government 
employ to address child labor/worst forms issues?  How many child 
labor/worst forms investigations have been conducted over the past 
year?  How many have resulted in fines, penalties, or convictions? 
Has the government provided awareness raising and/or training 
activities for officials charged with enforcing child labor laws? 
 
-Legal remedies available to government agencies for the purpose of 
protecting minor workers under age of 18 include: judicial 
punishment (imprisonment), fine, and court order.  ROKG provisions 
are adequate to punish and deter violations. 
 
-Minor workers, upon being unfairly treated in violation of the 
standards set out in labor-related laws and regulations, can report 
to the provincial labor offices of the MOL.  Upon receiving a 
report, the labor office investigates and, if the employer's 
violation is confirmed, issues a corrective order.  Unless the 
employer follows the order, he/she is subjected to judicial 
procedure. 
 
-In 2006, the MOL reported that 412 out of 603 cases reported by 
minor workers were confirmed to have violated labor laws, while 191 
cases were confirmed not to have violated any laws. 
 
-Of the 412 violation cases, the business owners took corrective 
actions in 340 cases.  The remaining 72 cases were subjected to 
judicial proceedings.  The MOJ could not advise the disposition of 
these 72 cases. 
 
-As of May 8, 2007, the MOL reported that 1,670 labor inspectors 
were carrying out their responsibilities as both labor inspectors 
and law enforcement authorities, to monitor labor conditions, 
including those of minor workers. 
 
-In 2006, they inspected 1,502 enterprises employing minor workers 
to ensure compliance with labor-related laws and regulations. 
Inspectors reported 1,718 violation cases in 876 enterprises.  There 
were no reported cases of the worst forms of child labor as set out 
in ILO Convention 182. 
 
Government Policies and Programs to Combat Child Labor/Worst Forms 
of Child Labor 
 
¶19.  (U) Question:  Does the country have a comprehensive policy or 
national program of action on child labor and/or the worst forms of 
child labor?  If so, to what degree has the country implemented the 
policy and/or program of action and achieved its goals and 
objectives?  Has the government made a public statement/commitment 
to eradicate the worst forms of child labor?  Please provide a brief 
history of government efforts to combat child labor over the past 5 
years. 
 
-Over the past 5 years, the MOL reported that the ROKG has drawn up 
and implemented new programs each year, including: giving guidance 
to and conducting monitoring of enterprises that employ minor 
workers; educational campaigns to publicize appropriate labor 
conditions for minor workers; and commissioning research projects to 
provide suggestions for improved policies and systems.  Details for 
2006 were as follows: 
 
--Supervision and monitoring: Of 1,502 enterprises, 1,718 cases in 
876 enterprises were found to have violated law and ordered to take 
corrective action. 
 
--Drafted and distributed 385,000 copies of awareness-raising 
leaflets to inform the public concerning part-time youth employment 
 
--Held education sessions for 8,878 people on labor-related laws 
involving juveniles 
 
--Public awareness efforts: Staged the "Working 1318 - What's it 
about?" campaign (Oct. 20 to Dec. 18, 2006) - including radio spots 
(11 times); newspaper ads (10 times); leaflets in the subway (14 
times); magazine ads (5 times); broadcast interviews (7 times); 
online media publicity (including the opening up of a dedicated 
homepage on youth labor protection); and a signature gathering event 
on youth labor protection (once). 
 
¶20.  (U) Question:  What initiatives has the government supported to 
prevent children from entering exploitive work situations, to 
withdraw children engaged in such labor, and to advocate on behalf 
of children involved in such employment and their families?  (If 
 
possible, please provide information on funding levels for such 
initiatives.) Does the government support programs to combat child 
labor through the provision of education services, including 
non-formal and vocational education? (If possible, please provide 
information on funding levels.) Do the country's laws/regulations 
call for universal or compulsory education?  Are these requirements 
enforced? Is education free or are fees charged for attendance, 
books, supplies, or transportation? 
 
-The ROK has a compulsory education system for elementary and middle 
school.  In 2006, the Ministry of Education reported that the 
entrance rate for elementary and middle school reached 99 percent. 
 
-The government provides free public education during the required 
years from elementary school through middle school, including all 
materials, books and transportation.