‘Wolhyang’ CEO Who Withheld Employee Wages Receives Suspended Sentence in First Trial

[Asia Economy Reporter Jang Hyowon] Lee Yeoyoung, CEO of the Korean restaurant ‘Wolhyang,’ who was prosecuted for withholding employee wages, received a suspended sentence in the first trial.

On the 27th, Judge Lee Jinyoung of the Seoul Northern District Court Criminal Division 9 sentenced Lee to 4 months in prison with a 1-year suspension for charges of failing to pay employee wages and severance pay (violation of the Labor Standards Act, etc.).

Lee was prosecuted for failing to pay 42 million KRW in wages and 18 million KRW in severance pay to 8 employees at the Wolhyang Korea University branch.

The court stated regarding the sentencing reasons, "The defendant admitted to the crime and showed remorse, partially paid wages and severance pay to the workers, which restored the damage, and consideration was given to the fact that the crime was committed due to business deterioration."

The prosecution was dismissed for 4 workers who reached an agreement with the CEO.

Earlier, the Ministry of Employment and Labor initiated an investigation into the wage arrears and unpaid severance pay of Wolhyang employees following their complaints and transferred the case last year.

Meanwhile, Lee was also tried at the Seoul Southern District Court and Seoul Western District Court for charges such as using the four major social insurance premiums as company operating expenses, and was sentenced to 8 months in prison with a 2-year suspension in each case.

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