Former Cyworld CEO Jeon Je-wan Fined in First Trial for Employee Wage and Severance Pay Arrears

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Jeon Je-wan, former CEO of Cyworld, who was indicted for failing to pay employees' wages and severance pay, was sentenced to a fine in the first trial.

On the 17th, Judge Jeon Kyung-se of the Seoul Eastern District Court Criminal Division 9 sentenced Jeon, who was charged with violating the Labor Standards Act, to a fine of 8 million won.

Jeon was brought to trial on charges of failing to pay approximately 890 million won in wages and severance pay to 29 employees who retired in 2019. Among the 29 employees, 27 submitted withdrawal of complaints after reaching an agreement with Jeon's side, but it was confirmed that no agreement was reached with the remaining two. The unpaid amount for the two employees who did not reach an agreement is reported to be about 60 million won.

Judge Jeon stated, "The unpaid amount is large, and it appears that the victims suffered considerable economic hardship as a result," adding, "However, the defendant has shown remorse, and although the amount of unpaid wages was not small, the fact that a smooth agreement was later reached with the victims is a favorable circumstance."

Earlier, in November of last year, former CEO Jeon was also indicted for withholding about 470 million won in wages and severance pay from 27 employees and embezzling about 10 million won in withheld health insurance premiums from three victims, for which he was sentenced to 1 year and 9 months in prison. However, he was not detained in court, and the appeal trial is currently underway.

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