Court Rules "Employment Restrictions for Embezzlement and Breach of Trust under the Special Economic Crimes Act Apply from Conviction Confirmation"

Park Chan-gu Loses First Trial in Administrative Lawsuit Against Ministry of Justice
Attention on Whether It Will Apply to Vice Chairman Lee Jae-yong's Case

[Asia Economy Reporter Cho Sung-pil] The court has ruled that the employment restriction for individuals who violate the Act on the Aggravated Punishment of Specific Economic Crimes (Special Act) begins not from the completion of the sentence execution but from the point when the guilty verdict is finalized. According to the ruling, Lee Jae-yong, Vice Chairman of Samsung Electronics, can also be considered to have already started his employment restriction period.

On the 24th, according to the legal community, the Seoul Administrative Court Administrative Division 7 (Presiding Judge Kim Guk-hyun) ruled against Park Chan-gu, Chairman of Kumho Petrochemical, in a lawsuit he filed against the Minister of Justice who denied approval for his employment as CEO during his probation period. The court stated, "It is reasonable to interpret the Special Act as defining the period during which employment is prohibited as 'from the time the guilty verdict is finalized'." It further explained, "Employment restrictions should begin from the time the person is found guilty to uphold the purpose and effectiveness of the restriction."

Previously, Chairman Park was sentenced to three years in prison with a five-year probation for breach of trust under the Special Act in 2018. He was reappointed as CEO in March of the following year during his probation period, but the Ministry of Justice imposed an employment restriction in May of the same year. Article 14 of the Special Act restricts employment for crimes such as embezzlement or breach of trust involving amounts exceeding 500 million won. The restriction period is defined as 'five years from the date the prison sentence execution is completed or confirmed not to be executed' or 'two years from the end of the probation period.' Chairman Park filed a lawsuit challenging this decision.

This ruling is expected to affect Lee Jae-yong, Vice Chairman of Samsung Electronics, who was imprisoned last month after his prison sentence was finalized. Since he cannot maintain his position, so-called 'management from prison' is practically impossible. The Ministry of Justice notified Lee’s side on the 15th that he is subject to employment restrictions.

This content was produced with the assistance of AI translation services.