[Asia Economy Reporter Seongpil Jo] Gye-mong-sa, a leading domestic children's book publishing company, won the first trial in a lawsuit against a former CEO who embezzled company funds, demanding the return of the embezzled money.
According to the legal community on the 24th, Judge Park Yeon-ju of Civil Division 209 at the Seoul Central District Court ruled in favor of the plaintiff, Gye-mong-sa, in a lawsuit against former CEO A for the return of embezzled funds. The court stated, "Mr. A is obligated to return the 76.8 million KRW withdrawn from Gye-mong-sa's account under the name of a bid deposit as unjust enrichment."
Earlier, while serving as CEO of Gye-mong-sa, Mr. A proceeded with a bidding for an auction of a commercial building located in Seodaemun-gu, Seoul, in February of last year, withdrawing 76.8 million KRW from the company account to pay the deposit. However, the scheduled auction sale date was postponed by about a month, and after Mr. A was dismissed at the company’s general meeting of shareholders held in early March of that year, Gye-mong-sa did not participate in the auction bid. Subsequently, Gye-mong-sa filed a lawsuit demanding the return of the 76.8 million KRW embezzled by Mr. A.
In court, Mr. A argued that the 76.8 million KRW withdrawn as a bid deposit was actually personal bonus money and that he had no obligation to return it. The court rejected this claim, stating, "There is no evidence to recognize that there was a mutual agreement to repurpose the 76.8 million KRW paid as an auction bid deposit as Mr. A’s bonus or other personal funds."
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