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Lotte Duty Free CEO Charged with 'Union Obstruction' Receives Suspended Prison Sentence in First Trial

Lotte Duty Free CEO Charged with 'Union Obstruction' Receives Suspended Prison Sentence in First Trial

[Asia Economy Reporter Kim Daehyun] Kim Junam, CEO of Lotte Duty Free, who was prosecuted for obstructing the company labor union from joining a higher-level organization, was sentenced to a suspended prison term in the first trial.


On the afternoon of the 30th, Judge Kang Youngjae of the Seoul Central District Court Criminal Division 6 sentenced Kim, who was charged with violating the Labor Union and Labor Relations Adjustment Act, to 6 months in prison with a 2-year suspension.


Three labor managers of the company who were prosecuted together were each fined between 5 million and 20 million won. The marketing director, who was indicted as an accomplice, was acquitted on the grounds that "it is difficult to see that he conspired with the other defendants."


Judge Kang stated, "The defendant made various remarks and contacts with key union figures who promoted joining Lotte Duty Free," adding, "This corresponds to prohibited acts of domination and intervention under the law, so the defendants must be punished as prescribed by law." He also pointed out, "Defendant Kim Junam and others made unfair transfer measures against delegates involved in union membership, which is a more serious crime."


Earlier, Kim and others were prosecuted for persuading and coercing the union side attempting to join the Korean Confederation of Trade Unions in April 2018 when he was the head of the Lotte Duty Free Support Headquarters. They were also charged with unfairly transferring union executives.


However, the charge of blocking the union chairman's office access was judged not guilty, stating, "It is questionable whether this can be seen as a decision at the defendants' level." This implies the possibility that it was a unilateral action by an employee with the authority to delete access rights.


Immediately after the ruling, CEO Kim said, "Although there are some regrets about the result, I will ensure that the company and its employees do not suffer damage." A Lotte Duty Free official said, "There are disputable parts in some of the ruling's contents," and added, "We will decide whether to appeal after review."


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