Former Korail Networks CEO Kang Gwiseop, who agreed to pay wages to striking workers in violation of the no work, no pay principle under the Labor Union Act, has been brought to trial.
The Criminal Division 5 of the Seoul Western District Prosecutors' Office (Chief Prosecutor Lee Byeongju) announced on the 8th that Kang was indicted without detention on charges of breach of trust in the course of business.
Kang is accused of drafting an agreement in July 2020 with the Korail Networks branch of the Korean Railway Workers' Union under the Korean Confederation of Trade Unions (KCTU), stating that "70% of wages will be paid to workers participating in the strike during the strike period." According to Article 44 of the Labor Union Act, employers are not obligated to pay wages to workers who do not provide labor due to participation in a dispute.
According to the prosecution, Kang unilaterally made the agreement two weeks before his retirement date without reviewing Korail Networks' financial situation, holding internal discussions, or going through decision-making procedures, excluding the opinions of the board and management. Fearing criticism, he promised the union to keep the agreement confidential, and the existence of the agreement was only revealed four months after Kang's retirement when the union disclosed it.
Korail Networks filed a complaint against Kang and the union for forgery and use of private documents and breach of trust in the course of business, but the police decided not to prosecute, stating it was difficult to view the acts as illegal. The company objected to the prosecution, and an investigation began in May last year.
A prosecution official stated, "Separate from the labor-management agreement promising wage payments during the strike period, the remaining charges such as breach of trust related to the defendant's agreement with the union on retirement age extension were dismissed."
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