Assemblyman Yeo: "Gwak Sang-do's son received 5 billion won for industrial accident but did not report to Labor Office"

Mandatory Reporting to Labor Authorities for Industrial Accidents Requiring More Than Three Days Off
Im Jong-seong "Suspicion of Monetary Nature Expands... Ministry of Employment Investigation Needed"

Kim Man-bae, the largest shareholder of Hwacheon Daeyu, who has been suspected of receiving special favors during the development process of Daejang-dong in Seongnam-si, Gyeonggi-do, appeared at Yongsan Police Station in Seoul on the 27th for investigation. Photo by Kang Jin-hyung aymsdream@

[Sejong=Asia Economy Reporter Moon Chaeseok] Regarding the controversy over Gwak Sang-do's son receiving a retirement payment of 5 billion KRW from Hwacheon Daeyu Asset Management, which is embroiled in allegations of preferential treatment in the Daejang-dong development project in Seongnam, Gyeonggi Province, Kim Man-bae, the major shareholder of Hwacheon Daeyu, claimed it was due to "mediation," but it has been revealed that no industrial accident report was filed with the competent employment and labor office. Previously, it was disclosed that no report was filed with the Seongnam branch of the Central Regional Employment and Labor Office, the legally mandated reporting agency, rather than the Korea Workers' Compensation and Welfare Service.

According to data submitted by the Central Regional Employment and Labor Office to Lim Jong-sung, a member of the National Assembly's Environment and Labor Committee from the Democratic Party of Korea, on the 29th, Hwacheon Daeyu has not reported any industrial accidents to the Seongnam branch of the Ministry of Employment and Labor, the local employment and labor office, since its establishment in 2015.

The Industrial Safety and Health Act stipulates that employers must not conceal the occurrence of industrial accidents. Accordingly, if an industrial accident requiring more than three days of leave occurs, the employer must report the industrial accident to the competent local employment and labor office within one month.

Earlier, on the 27th, Kim appeared at the Yongsan Police Station in Seoul for a witness investigation and, when asked whether the 5 billion KRW retirement payment to Gwak's son, who worked as an employee of Hwacheon Daeyu, was a quid pro quo, he explained, "Gwak's son suffered an industrial accident," adding, "It is a private matter, so unless the person involved responds, it is difficult to comment."

If, as Kim stated, the incident qualifies as a serious industrial accident but was not reported to the employment and labor office, there is a possibility of legal violation. It has also been revealed that Gwak's son did not apply for industrial accident compensation with the Korea Workers' Compensation and Welfare Service. While applying for industrial accident compensation with the Service is voluntary, reporting industrial accidents to the employment and labor office is a legal obligation.

Assemblyman Lim said, "Hwacheon Daeyu claims that the payment of tens of billions of won was a consolation payment for an industrial accident, but considering that they did not even fulfill the employer's legal obligation to report the industrial accident, suspicions about the nature of the payment will only grow," adding, "A prompt and thorough investigation into the nature and background of the payment is necessary."

He added, "If a consolation payment for an industrial accident was made without reporting the occurrence of the industrial accident, the Ministry of Employment and Labor needs to investigate whether an industrial accident or work-related injury actually occurred, as well as whether there was any failure to report or concealment of the industrial accident."

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