[2021 National Audit] Minister of Employment Reviews "Labor Law Aspects" Regarding 'Hwacheon Daeyu 5 Billion'

October 6 National Assembly Environment and Labor Committee Employment Ministry Audit

"5 Billion Won: Employment Ministry Unable to Determine if It Is Severance Pay, Industrial Accident Compensation, or Performance Bonus"
"Review of Labor Law Matters Including Drafting Employment Rules and Reporting Obligations at Establishment Start"

Minister of Employment and Labor An Kyung-duk reporting on duties and introducing executives during the National Assembly Environment and Labor Committee's audit of the Ministry of Employment and Labor held at the Government Sejong Complex on the morning of the 6th. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] Employment and Labor Minister An Kyung-duk said on the 6th regarding the fact that the son of independent lawmaker Kwak Sang-do received 5 billion KRW in severance pay from Hwacheon Daeyu, which led the Daejang-dong development project in Seongnam-si, Gyeonggi Province, citing industrial accident compensation, "We will review whether there are any further aspects to examine under labor relations laws concerning the failure to prepare and report employment rules (at the establishment of Hwacheon Daeyu)."

Minister An made this remark in response to a related inquiry by Democratic Party lawmaker Ahn Ho-young during the National Assembly Environment and Labor Committee’s audit held at the Government Sejong Complex that morning.

In response to Ahn’s question, "Depending on whether the 5 billion KRW is severance pay, industrial accident consolation money, or performance bonus, it could relate to the Labor Standards Act, Industrial Safety and Health Act, or the Retirement Benefit Security Act. Will you investigate the nature of the funds?" Minister An replied, "Since the nature of the 5 billion KRW?whether it is severance pay, industrial accident consolation money, or performance bonus?is unclear, I believe it is a matter that the Ministry of Employment and Labor cannot directly clarify."

When Ahn specifically asked, "Do you think stress-induced tinnitus can be classified as an occupational disease? Is it understandable to pay 5 billion KRW as a performance bonus to a deputy manager with 7 years of service? What is your opinion, Minister?" Minister An answered, "It seems difficult for the general public to understand."

Ahn pointed out that Hwacheon Daeyu violated the Labor Standards Act by failing to prepare and report employment rules despite having more than 10 regular employees in 2015 when it was established. He added, "There should be provisions in the employment rules regarding severance pay, performance bonuses, and industrial accident consolation money, and these provisions could provide clues to clarify the nature of the payments. Will the Ministry of Employment and Labor conduct an investigation related to labor relations laws?"

Minister An responded, "As the lawmaker pointed out, we will investigate whether the preparation and reporting of employment rules were done if necessary."

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