The director of a South Korean company in Ho Chi Minh City has surrendered his passport to employees as collateral for failing to pay them last month.

Lee Gaeagik, the Korean general director of the Bumhyun Vietnam Company, has agreed to let a representative of the firm’s labor force keep his passport until he pays employees September's salary, a source close to Tuoi Tre (Youth) newspaper affirmed on Thursday.

Based in District 9, Ho Chi Minh City, Bumhyun Vietnam is a 100 percent South Korean invested business which specializes in exporting jackets.

The incident arose after more than 600 company workers went on strike Tuesday morning to demand September’s salary.

Due to financial difficulties, the foreign institution owes its employees VND3.7 billion (US$164,156) and has promised to pay VND1.5 billion ($66,549) by October 17.

Workers doubt the credibility of the promise, citing the fact that the company has neither received recent orders nor imported any material.

In response to the fierce reaction, general director Lee was forced to promise full payment, surrendering his passport until all his employees are able to collect their salaries.

The workers were also allowed to take days off until Friday.

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