KB Kookmin Bank has introduced a service to improve the stability of wage payments for day laborers and gig workers. Under the service, wages are remitted directly to workers’ accounts through a platform, while introduction fees are settled separately to help prevent wage arrears.

KB Kookmin Bank said on Sunday it launched the 'No Arrears Instant Remittance Service' in cooperation with the day-labor brokerage platform Ilgaja.

The service uses firm banking on the Ilgaja platform to send wages payable by a workplace directly to a worker’s account. Brokerage introduction fees are remitted and settled separately to job placement agencies.

The bank said it expects the service to improve the stability and reliability of wage payments and contribute to preventing wage arrears and protecting workers’ rights.

It also provides online labor and tax functions. Workplaces can handle drafting electronic employment contracts, electronic signatures, issuing electronic wage statements, settling introduction fees and issuing electronic tax invoices within the service.

The two companies will initially operate the service for 340,000 day laborers nationwide and about 190,000 work sites held by Ilgaja. They plan to expand the scope later and introduce additional services to improve financial convenience for day laborers and gig workers.

They also plan to cooperate on developing fintech technology that links recruitment platform information with financial infrastructure in line with the government’s measures to prevent wage arrears.

A KB Kookmin Bank official said the bank will continue to expand inclusive finance practices to protect the rights of customers who are likely to be in financial blind spots or financially vulnerable groups and to improve access to financial services.