Prosecution Secures Custody of Heo Young-in, Key Figure in SPC's Alleged Widespread 'Unfair Labor Practices'... Investigation Nears Conclusion

The prosecution has succeeded in securing the custody of Heo Young-in, chairman of SPC Group, who is accused of urging bakery workers at Paris Baguette, affiliated with the Korean Confederation of Trade Unions (KCTU), to withdraw from the union and ordering disadvantages against them. With Heo, the pinnacle of SPC Group's widespread unfair labor practice allegations, being detained, the prosecution's investigation is expected to enter its final stages.

Chairman Heo Young-in of SPC Group. [Image source=Yonhap News]

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Nam Cheon-gyu, the warrant judge at the Seoul Central District Court, issued an arrest warrant on the 5th against Chairman Heo, who is charged with violating the Labor Union and Labor Relations Adjustment Act, citing "concerns over evidence destruction."

Inside and outside the legal community, it is analyzed that Heo's uncooperative attitude toward the investigation, including refusing to appear for questioning four times, significantly influenced the issuance of the arrest warrant.

From last month until the 1st of this month, Heo refused four summonses as a suspect and, citing health reasons, was hospitalized, effectively avoiding prosecution investigations intentionally.

The investigation, which had been delayed due to Heo's refusal to cooperate, is expected to gain momentum with his detention. The prosecution plans to secure Heo's custody for up to 20 days to verify whether he was involved in SPC Group's widespread unfair labor practices. In addition to the unfair labor practice charges, the prosecution intends to investigate whether Heo was involved in the process where SPC Executive Director Baek (indicted and detained) received various investigation information such as the warrant request and internal review reports from a prosecution investigator and provided hundreds of thousands of won worth of entertainment in return.

Heo is accused of urging members of the Korean Confederation of Trade Unions' Hwaseom Food Union Paris Baguette branch, a subsidiary of SPC called PB Partners, to withdraw from the union and giving disadvantages in promotions and personnel matters from July 2019 to August 2022.

Additionally, he is charged with unfair labor practices such as supporting the securing of union members for the pro-management Federation of Korean Trade Unions (FKTU) Food Industry Union PB Partners labor union and having the union chairman A give interviews or statements aligned with management's position.

During the investigation of executives including SPC CEO Hwang Jae-bok, who was previously indicted and detained, the prosecution reportedly secured testimony stating that "when the KCTU Paris Baguette branch protested in front of Chairman Heo's residence, Heo ordered the dissolution of the union and was subsequently briefed on the progress."

The prosecution's indictment against CEO Hwang reportedly includes content that the goal of creating "clean workplaces" without KCTU members was communicated to regional workplaces under Hwang's orders, marking the start of active union withdrawal coercion. The prosecution believes that CEO Hwang, under Heo's instructions, conveyed the union withdrawal coercion tasks to the working-level staff and later reported the progress to Heo.

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