Internal and External Troubles at Seoul Metro... President Kim Sang-beom Faces Major 'Crisis'

Amid management difficulties including a 1 trillion won deficit due to COVID-19, Seoul city officials issue warnings on subway dust collection facilities, recommend dismissal of the mechanical director, and request investigation of the former technical director with severe disciplinary actions... Attention on reenactment test results related to the fire accident at Bucheon Sangdong Station substation and disabled death led by Bucheon Police on the 18th... On the 13th, partial plaintiff victory in retirement pay lawsuit filed by 218 people including Mr. Gomo against Seoul Metro; internal and external crises intensify, executives including President Kim on high alert... New Seoul Mayor Oh Se-hoon to soon appoint Kim Sang-beom as Metro President

[Asia Economy Reporter Park Jong-il] Seoul Metro (President Kim Sang-beom) is drawing attention as it faces its worst situation.

With deficits reaching 1 trillion won due to COVID-19, the management situation is worsening, and difficulties continue both internally and externally.

Following our exclusive report on the 10th titled [Exclusive] "Seoul City warns Seoul Metro president regarding subway dust collection facilities... Former head of technical headquarters referred for investigation," the company lost a severance pay lawsuit on the 13th, requiring it to return severance pay worth over 100 million won to hundreds of employees.

Additionally, on the afternoon of the 18th, a 'Reenactment Experiment related to the Bucheon Sangdong Station Substation Fire Incident and the Death of a Disabled Person' involving Bucheon Police Station, Bucheon City, and Seoul Metro is scheduled at Bucheon Sangdong Station, and depending on the results, it is expected to cause a major upheaval.

Seoul City issued a warning to Seoul Metro's president regarding the installation of bidirectional dust collectors and station ventilation systems in the Seoul subway. It also recommended the dismissal of Director L of the Mechanical Department and referred former head of the Technical Headquarters K (retired) for investigation, imposing severe disciplinary measures.

Various disciplinary actions, including suspension, were also taken against responsible employees. From 2018 to 2019, when fine dust was severe, Mayor Park Won-soon led major fine dust reduction measures as head of the headquarters.

Accordingly, both Seoul City and the government created supplementary budgets to allocate funds to Seoul Metro, aiming to protect the health of Seoul citizens and metropolitan area residents who use the Seoul subway.

Nevertheless, Seoul Metro excessively pressured contractors, causing construction delays. Seoul City conducted a large-scale audit, uncovering serious issues, which led to these severe disciplinary actions.

In particular, with the dismissal recommendation for the responsible mechanical director and the investigation referral of the former technical headquarters head, Seoul Metropolitan Police Agency’s Intelligent Investigation Unit is expected to launch a large-scale investigation, putting the president and executives in a state of extreme tension over how much the incident might escalate.

Moreover, the joint reenactment experiment scheduled on the 18th with Bucheon Police Station, Bucheon City, and Seoul Metro to verify the connection between the substation fire at Bucheon Sangdong Station and the death of a disabled person is drawing attention to its results.

If the reenactment experiment reveals a connection between the substation fire and the death of the disabled person, judicial action against the relevant executives is anticipated, causing Seoul Metro to be highly anxious already.

Meanwhile, on the 13th, Judge Park Yeon-ju of Seoul Central District Court Civil Division 209 ruled partially in favor of plaintiffs including Mr. Ko and 217 others in a severance pay claim lawsuit against Seoul Metro.

The court ordered, "The defendant (Seoul Metro) shall pay all 106 plaintiffs including Mr. Ko 45 million won each, plus interest calculated at an annual rate of 12% until full payment."

Since before 2006, Seoul Metro has paid position allowance ranging from 200,000 to 1.1 million won by rank. After introducing the wage peak system in 2016, it did not include the position allowance in the average wage during the mid-term settlement of severance pay for eligible employees.

Accordingly, Mr. Ko and others filed a lawsuit against Seoul Metro, established through a merger with Seoul Metropolitan Rapid Transit Corporation, claiming that position allowance should be included in the average wage.

Previously, the company was also ordered to pay 194 million won to other former and current employees who had not received full severance pay.

Meanwhile, President Kim Sang-beom is scheduled to report Seoul Metro’s business to newly elected Seoul Mayor Oh Se-hoon soon, drawing attention to the mayor’s remarks.

President Kim Sang-beom was appointed as Seoul Metro president during Mayor Park Won-soon’s administration last year and has served over one year in office.