Supreme Court Rules Gas Corporation's Dismissal of Former President Jang Seok-hyo on 'Corruption Charges' Is Lawful

Supreme Court in Seocho-dong, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Daehyun] The Supreme Court has ruled that the administrative dismissal of former Korea Gas Corporation President Jang Seokhyo, who was prosecuted on corruption charges and was undergoing a criminal trial, was lawful.

On the 7th, the Supreme Court's First Division (Presiding Justice Lee Gitaek) announced that it upheld the lower court's ruling, which dismissed Jang's appeal in the case he filed against the President and Korea Gas Corporation seeking to cancel his dismissal. The court stated, "Civil and administrative liabilities and criminal liabilities are governed by different principles," and "the fact that the related acts were acquitted in a criminal trial does not negate the existence of disciplinary grounds in an administrative lawsuit."

Jang, who took office as president of Korea Gas Corporation in 2013, tendered his resignation after being indicted on corruption charges during his tenure. He was prosecuted for receiving a total of 289 million won in money and entertainment from a towing company where he served as a representative. He was also indicted for providing golf entertainment worth approximately 35 million won to executives of Korea Gas Corporation during his time as the company's representative.

However, Korea Gas Corporation did not accept Jang's resignation and dismissed him after going through the Public Institution Management Committee. According to the personnel management guidelines for public enterprises, employees of public enterprises involved in corruption and subjected to severe disciplinary action cannot resign voluntarily (resign in office) while disciplinary procedures such as dismissal, removal, or suspension are ongoing.

In response, Jang filed an administrative lawsuit in 2015, arguing that it was unfair to dismiss him based solely on suspicions without a confirmed guilty verdict. Subsequently, he was acquitted in the first trial of the criminal case. In the second trial, he was found guilty only of the golf entertainment charge and was fined 20 million won.

The first-instance court handling the administrative lawsuit ruled in favor of Jang, judging that the acts in question could be seen as rewards or courtesies for performance and thus did not constitute grounds for dismissal. On the other hand, the second-instance court ruled against the plaintiff. The second-instance court pointed out that "there are justifiable reasons for the dismissal, including the guilty verdict related to the golf entertainment."

The Supreme Court also agreed with the second-instance ruling and dismissed Jang's appeal. The court stated, "Even if the charges in the related criminal case were judged as not guilty, the lower court's judgment cannot be viewed differently," and "the lower court did not err in its understanding of the grounds and burden of proof for the dismissal, nor in the legal principles concerning the job security of public enterprise presidents."

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