Ministry of Justice to Verify Facts on Kim Seung-yeon, Hanwha Chairman Receiving Salary During Employment Restriction Period

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] On the 23rd, the Ministry of Justice stated that it will review measures after verifying the facts regarding Hanwha Group Chairman Kim Seung-yeon receiving compensation as an unregistered executive of an affiliate during the employment restriction period.

Chairman Kim was indicted in 2011 on charges of breach of trust, including improper expenditures for debt repayment of a disguised affiliate of Hanwha Group from 2004 to 2006 and selling affiliate stocks at a low price. In February 2014, he was sentenced to three years in prison with a five-year probation and fined 5 billion won. Although his probation ended in February 2019, his employment was restricted for two years. It is known that during this employment restriction period, Chairman Kim worked at the affiliate Hanwha Techwin and received tens of billions of won in compensation.

Hanwha claimed that Chairman Kim’s employment does not violate the legal employment restriction regulations. A Hanwha official explained, "Hanwha Techwin was acquired from Samsung in June 2015 and established through a physical division in 2018," adding, "During 2004 to 2006, when Chairman Kim’s breach of trust charges were recognized, Hanwha Techwin was unrelated to Hanwha and is not a company subject to employment restrictions."

Meanwhile, on the 13th, the Ministry of Justice set a precedent stating that Samsung Electronics Vice Chairman Lee Jae-yong, who was released on parole and subject to employment restrictions, would not be violating employment restrictions even if he maintains an unpaid, non-executive, unregistered executive position while engaging in management activities.

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