Executive Arrested for Extorting 200 Million Won by Threatening Construction Company to Hire Union Members

Extorting Union Full-Time Fees and Welfare Funds While Working in Busan, Ulsan, and Gyeongnam

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Labor union executives who extorted hundreds of millions of won by threatening construction companies have been handcuffed.

According to the Gyeongnam Police Agency on the 16th, 10 union executives, including the head of the Busan-Ulsan-Gyeongnam Headquarters, forced the hiring of union members and obstructed construction work at 22 large apartment construction sites in the Busan, Ulsan, and Gyeongnam areas between September 2021 and December 2022.

They extorted about 200 million won from 20 construction companies under the pretext of union full-time fees and welfare funds.

When construction companies refused to hire union members due to reasons such as existing workers and excessive costs, they repeatedly threatened, saying, "We will show the power of the labor union."

They intimidated by saying, "Prepare for the site. We will hold rallies every day to stop the construction work," and held rallies.

They also filed complaints with administrative authorities regarding safety helmet non-wearing and illegal employment of foreign workers.

Evidence such as the labor union's collective agreement seized by the police. [Photo by Gyeongnam Police Agency]

Even though there was no employment of affiliated union members and they were not subject to collective bargaining, they forced construction companies to sign pre-prepared collective agreements and forcibly took money under the name of union full-time fees and welfare funds.

They blatantly demanded 50 million won in cash and secretly received it at a highway rest area.

The Metropolitan Investigation Unit 1 of the Violent Crime Investigation Division of the Provincial Police Agency collected numerous intelligence reports on their crimes and launched an investigation.

They were arrested by the police under the Act on the Punishment of Violent Acts and related laws, Article 2, Paragraph 2, Subparagraph 3.

Based on evidence, the police sequentially investigated the union executives; the headquarters chief and the organization director were detained on charges of joint extortion, and the remaining executives were also booked on the same charges and are under investigation.

The investigation revealed that most of the extorted money was used for union office operating funds, payment of salaries to affiliated executives, and monthly membership fees paid to higher-level union organizations, which were completely unrelated to actual union activities.

It was also revealed that they attempted to destroy evidence by replacing mobile phones they usually used after learning about the large-scale crackdown on illegal union activities.

The Provincial Police Agency stated that this case confirmed that illegal acts beyond legitimate fair trade and labor compensation are widespread at construction sites by disguising as a legitimate labor union and using the organization's power.

They explained that these illegal acts cause excessive work to meet construction schedules, threatening workers' safety and leading to increased sale prices, ultimately causing harm to the public.

A Provincial Police Agency official said, "We will eradicate organized illegal acts such as extortion and violence at construction sites that undermine social stability within the scope of guaranteeing legitimate labor activities," and added, "We will strictly respond according to law and principles to illegal acts that undermine the autonomy and fairness of labor-management relations by the end of June."

The Provincial Police Agency plans to respond to collective power displays such as ▲obstruction of business and violence ▲extortion of money through organized violence and threats ▲forced hiring or use of construction machinery by specific union groups ▲illegal assemblies and demonstrations ▲retaliation against whistleblowers.

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