LG Electronics Employees Accused of 'Hiring Corruption'... Executive Given Probation, Others Fined

LG Headquarters Building in Yeouido, Seoul [Image Source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] Eight current and former LG Electronics executives accused of recruitment corruption for new employees were each sentenced to suspended prison terms and fines in the first trial.

On the afternoon of the 26th, Judge Lim Gwangho of Criminal Division 20 at the Seoul Central District Court sentenced Park Mo, former executive director of an LG Group affiliate and LG Electronics recruitment officer, to 6 months in prison with a 2-year suspension, and imposed fines ranging from 7 million to 10 million KRW on the other seven co-defendants.

The court stated the sentencing rationale for Executive Director Park, saying, "He held a position with significant influence overseeing LG Electronics' HR operations, established and managed inappropriate recruitment request management guidelines, and utilized them during the hiring process, which constitutes a serious offense. This undermined fairness and equity, incited social outrage, and severely damaged LG Electronics' vision, values, and external image."

Earlier, Executive Director Park and others were prosecuted on charges of obstructing business by fraudulently admitting the sons of company executives and others during LG Electronics' new employee selection process from 2013 to 2015.

The defendants argued during the trial that "the recruitment officer's broad discretionary authority and adjustment rights did not exceed the scope necessary to secure LG Electronics' operating profit and diverse personnel composition," and denied obstructing the company's business.

However, the court pointed out that "the establishment of the crime of business obstruction does not depend on whether the obstruction's result actually occurs, but on whether the risk arises," and added, "Arbitrarily granting eligibility for the next stage to applicants who should have been rejected undermined the appropriateness and fairness of the delegated evaluators' duties at each stage."

Initially, the prosecution filed a summary indictment requesting fines for the defendants. However, the court referred the case to a formal trial. A summary indictment is a procedure where the prosecution requests fines or penalties through written review instead of a formal trial. If the parties or the court raise objections, the case proceeds to a formal trial. According to Article 314 of the current Criminal Act, committing business obstruction is punishable by imprisonment of up to 5 years or a fine of up to 15 million KRW.

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