Former Cyworld CEO Jeon Je-wan's 'Employee Wage Arrears' Case Reduced to Probation in Second Trial

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Jeon Je-wan (57), former CEO of Cyworld, who was prosecuted for withholding employees' wages, received a reduced sentence in the appellate court.

The Seoul Eastern District Court Criminal Division 1-1 (Chief Judge Kim Dong-hyun) on the 19th overturned the original sentence of 1 year and 6 months imprisonment for Jeon, who was charged with violating the Labor Standards Act and the Act on the Guarantee of Employees' Retirement Benefits, and sentenced him to 1 year imprisonment with 2 years probation and 120 hours of community service.

Jeon was indicted for withholding approximately 470 million KRW in wages and retirement pay from 27 Cyworld employees and embezzling 11.8 million KRW in health insurance premiums withheld from three of the victims.

The court pointed out, "The defendant managed the company while failing to pay wages to many workers and embezzled 11.8 million KRW in national pension insurance premiums, and the fact that he has not yet reached an agreement with 14 victims is an unfavorable circumstance."

However, the court explained the reason for the ruling, stating, "It is judged that the defendant did not maliciously withhold wages, and the fact that he reached additional agreements with 13 victims during the second trial was comprehensively reflected."

Immediately after the verdict, former CEO Jeon said, "I have no intention to appeal," and expressed, "I feel sorry and grateful to the employees."

Meanwhile, Cyworld, which suspended its service in October 2019, was acquired earlier this year by 'CyworldZ,' a newly established corporation formed by five companies including Sky ENM, and is pushing to resume services by restoring 18 billion mini-homepage photos and 160 million videos.

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