Habitual 'Company Fund Embezzlement and Wage Arrears' Mask Manufacturer Owner Arrested

Wage Arrears of 120 Million Won... Misuse of 'Small Amount Wage Claim System' Causes National Treasury Loss
Embezzlement of Company Funds for Personal Use During Probation for 'Embezzlement in the Course of Duty'

[Asia Economy Reporter La Young-cheol] A business owner who habitually embezzled company funds for personal use and withheld wages from dozens of employees for an extended period has been criminally prosecuted.

The Uijeongbu branch of the Ministry of Employment and Labor announced on the 21st that "Jeon, a 38-year-old mask manufacturer, was arrested on charges of violating the Labor Standards Act."

Jeon is accused of using the profits from manufacturing and selling masks at a mask factory in Uijeongbu, Gyeonggi Province, where the company is headquartered in Seoul, for personal purposes since March last year, and withholding approximately 120 million won in wages from 11 workers from October last year to July this year.

He is also charged with embezzling company funds for personal use during a probation period for previous embezzlement.

Investigations revealed that in addition to the unpaid wages of 11 employees, when 21 other workers who had not received their wages reported him to the labor office, Jeon abused the 'Small Amount Wage Claim Payment' system, under which the government pays wages in advance on behalf of companies that withhold wages, causing about 87 million won in damage to the national treasury.

The Uijeongbu branch uncovered through investigations including seizure of financial accounts that Jeon failed to fulfill his duties and responsibilities as a business manager by misappropriating company funds.

Gong Seok-won, head of the Uijeongbu branch, stated, "Wages are a primary means of livelihood for workers, and wage withholding is an antisocial crime that threatens their livelihood. We will strictly hold business owners who withhold wages accountable and strive to protect the rights of affected workers."

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