"Controversy Over 'Top Instructor Lee Jeok' Transfer Leads to Lawsuit Between Companies, Court Dismisses Megastudy's Claim"

On the morning of the 6th, the Civil Division 30 of the Seoul Central District Court (Presiding Judge Jeong Chan-woo) ruled against the plaintiff in the first trial of the approximately 37.3 billion KRW damages claim lawsuit filed by Megastudy Education against ST Unitas. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Daehyun] In the lawsuit battle between private education companies over the recruitment of 'star instructors,' MegaStudy's claim for damages against a competitor was dismissed in the first trial.

On the morning of the 6th, the Civil Division 30 of the Seoul Central District Court (Presiding Judge Jung Chanwoo) ruled against the plaintiff in the first trial of the approximately 37.3 billion KRW damages claim filed by MegaStudy Education against ST Unitas.

Yoo, a Korean language instructor considered a 'top instructor' for the CSAT, signed a seven-year online lecture contract with MegaStudy in September 2015. In 2017, he signed an exclusive agreement for offline lectures, extending the contract period until December 2024. However, on October 21, 2019, Yoo notified MegaStudy that he would no longer conduct online lectures. Two days later, an advertisement implying Yoo's transfer appeared on a competitor's website, and actual lectures were opened.

MegaStudy claimed damages, stating that "ST Unitas actively supported Yoo's transfer despite the remaining exclusive contract period." On the other hand, ST Unitas countered, arguing that "MegaStudy is shifting the trust and contract issues between the instructor and the company."

Previously, the Civil Division 46 of the Seoul Central District Court (Presiding Judge Lee Wonseok), which heard the first trial of the damages claim filed by MegaStudy Education against Yoo, ruled in August that Yoo must pay 7.5 billion KRW to MegaStudy. However, in a counterclaim filed by Yoo demanding unpaid instructor fees, the court ruled that MegaStudy must pay 580 million KRW.

Meanwhile, ST Unitas has also filed a damages claim worth 88.9 billion KRW against MegaStudy Education, alleging interference with the fulfillment of instructor contracts and causing contract termination. The first trial is currently ongoing. The claim is that MegaStudy unfairly intervened in the transfer of instructors who were under exclusive contracts with ST Unitas before the contract period ended.