Park Young-woo, chairman of Daeyu Winia, who was prosecuted for failing to pay hundreds of billions of won in employee wages and severance pay, was sentenced to four years in prison in the first trial.
The Criminal Division 2 of Seongnam Branch of Suwon District Court (Chief Judge Lee Jin-hyuk) sentenced Chairman Park, who was detained and indicted on charges including violation of the Labor Standards Act, to four years in prison on the 19th. Park was acquitted of the charge of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement) among the accusations. In addition, the court sentenced three former and current CEOs of two group affiliates, who were also indicted for participating in the wage arrears crimes, to prison terms ranging from six months to three years with probation periods of two to four years.
The court explained, "Chairman Park is a de facto business manager who has a significant influence on company management, makes decisions on large-scale fund expenditures, and exercises personnel authority over executives," adding, "He is responsible for managing employee wages."
It continued, "This is an unprecedented case where over 800 employees did not receive from several million won to as much as several hundred million won, resulting in hundreds of billions of won in unpaid wages," and pointed out, "Except for some, compensation for damages has not been made to date."
Furthermore, the court stated, "Despite this, he tried to evade his responsibility as a business manager, showing very poor criminal conduct," and added, "Considering the lack of a repayment plan based on specific fundraising methods, the fact that most affected workers are suffering severe livelihood difficulties and demand strict punishment, and other circumstances, a severe punishment corresponding to this is necessary."
However, the court added, "Chairman Park has no prior record of similar crimes, and aside from a fine for violating the National Assembly testimony law, he has no previous prison sentences, which were considered favorable factors in determining the sentence."
The workers' side evaluated the first trial verdict as a disappointing result. Kang Yong-seok, chairman of the Winia Electronics Labor Union of the Metal Workers' Union, said in front of the court immediately after the trial, "Chairman Park did not present a wage repayment plan containing a practical fundraising method during his detention and trial since last year," and added, "He even smiled as he left the court after today's trial."
Park was indicted in March last year on charges of withholding about 47 billion won in wages and severance pay from over 800 employees of Winia Electronics and Winia from October 2020 to December 2023. Separately, he was additionally indicted in May last year for failing to pay 11.4 billion won in wages and severance pay to 251 employees of a Gwangju-area affiliate from 2022 to 2023, and is currently undergoing the first trial at the Gwangju District Court.
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