[Exclusive] Court: Public Home Shopping Must Pay Former Standing Auditor Yoo Changoh 80 Million Won in Unpaid Wages and Compensation

The court has ruled that the dismissal of Yoo Changoh, former Standing Auditor of Public Home Shopping-a public institution under the Ministry of SMEs and Startups-on the grounds that he was appointed as a special advisor to then-presidential candidate Lee Jaemyung during the 20th presidential election, was unjust.

According to the government and legal community on October 21, Judge Yoo Donggyun of the Seoul Western District Court, Civil Division 14, recently ruled in the first trial of a lawsuit filed by former Standing Auditor Yoo against Public Home Shopping, demanding "unpaid wages and compensation for mental distress due to unfair dismissal." The court partially ruled in favor of Yoo, ordering Public Home Shopping to pay him approximately 80 million won, including base salary, bonuses, and severance pay until the end of his term. The remaining claims, such as compensation for mental distress, were dismissed.

Yoo Changoh, Former Standing Auditor of Public Home Shopping

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Yoo was appointed as Standing Auditor of Public Home Shopping in 2021 during the Moon Jaein administration. In January 2022, he received an appointment as a special advisor to then-presidential candidate Lee Jaemyung’s campaign, which became a point of controversy during the following year’s National Assembly audit. Lawmakers from the ruling People Power Party at the time pointed out a violation of the prohibition on holding concurrent positions, stating that he engaged in nonprofit work without board approval.

In addition, allegations arose that Yoo had used a corporate card and a company vehicle for personal purposes. As a result, Public Home Shopping dismissed him in November of the same year. Yoo then filed a lawsuit, claiming the dismissal was unjust and demanding compensation for salary and other benefits until the originally scheduled end of his term. Public Home Shopping is a quasi-public institution under the Ministry of SMEs and Startups, with the Korea Small & Medium Business Distribution Center holding a 50% stake. The appointment and dismissal of auditors are carried out through resolutions at the shareholders’ meeting.

The court stated, "There is no evidence that Yoo participated in actual electioneering or political activities as a special advisor, and simply receiving an appointment letter does not constitute a violation of the prohibition on holding concurrent positions or the duty of fidelity." The court added, "Considering that over 1.9 million special advisor appointment letters were issued by the Democratic Party candidate’s campaign at the time, it is difficult to conclude that merely receiving an appointment made it impossible for him to perform his duties."

The court also pointed out that the position of Standing Auditor at Public Home Shopping, as a quasi-public institution, is not legally subject to political neutrality requirements. The fact that Yoo received an appointment as a special advisor to a specific party’s presidential candidate during his tenure does not, in itself, constitute a violation of the duty of care required of a prudent manager. The court further found that Yoo’s removal from the National Assembly audit in 2023 for inappropriate behavior did not make it significantly difficult for him to carry out his duties as auditor.

The court also determined that allegations of personal use of the corporate card and company vehicle could not be grounds for dismissal, as investigative authorities concluded there was "no charge." During the 2023 National Assembly audit, Yoo was criticized for having spent 54.87 million won on the corporate card since taking office, which was more than four times the amount used by the CEO. That year, the Ministry of SMEs and Startups requested a police investigation of Yoo on suspicion of embezzlement of public funds, but the Mapo Police Station decided in May not to refer the case for prosecution.

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