Decision to Raise Salary After CEO of Bookplus Returns in November Last Year
Most Employees' Wages Frozen Due to Company Difficulties at the Time...Regular Employees Reduced by 20%
[Asia Economy Intern Reporter Lim Juhyung] Jeon Jae-guk, the eldest son of former President Jeon Du-hwan, reportedly increased his salary by more than 40% after returning as CEO of the book distribution company 'Bookplus' last year. When shareholders protested this, Jeon responded with displeasure, calling it "rude."
According to 'SBS' on the 19th, Jeon returned as CEO of Bookplus in November last year after about six years. Immediately after his appointment, the CEO's salary was sharply raised from 9 million won to 13 million won, a 44% increase.
At the time Jeon raised his salary, the wages of most Bookplus employees were frozen. Over the past three years, Bookplus's sales decreased by nearly 15%, from 44.6 billion won to 38.8 billion won, and operating profits recorded losses for three consecutive years. The number of regular employees was also reduced by nearly 20%, from 123 to 97 last year.
In response, shareholders pointed out the CEO's salary increase at the shareholders' meeting held in March, but Jeon reportedly showed displeasure.
According to the transcript of the shareholders' meeting released by 'SBS,' Jeon said, "If you don't trust my ability, then manage everything yourselves. Don't the shareholders here recognize my ability?" and added, "(Criticizing my salary) is rude, isn't it? What's wrong with the CEO receiving a high salary?"
Previously, controversy arose as Jeon was reported to have continued using the company corporate card even after voluntarily paying back his shares in Bookplus.
According to the Bookplus corporate card usage details obtained by SBS on the 18th, Jeon spent more than 40 million won over four years from December 2015 on overseas online shopping malls and other expenses using the corporate card, and about 37 million won on bars and golf courses. Among these, there were about 600 cases suspected of improper use according to National Tax Service standards, with the amount exceeding 100 million won.
Regarding this, Jeon's side explained in a phone call with SBS, "An external audit was conducted on the use of the corporate card, and taxes were paid on the several million won that exceeded the limit."
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