Employee Suspected of Embezzlement 'Cleared of Charges'... Conflict Intensifies Between Executive and Former Employee

Gangjin County Fisheries Cooperative Request: Central Association Audit and Embezzlement Charges Cleared by Police

Employees Announce Legal Action for False Accusation and Defamation... Also Demand Resignation of Executives

Chairman: "Difficult to Accept Central Association Audit... Will Decide at Board Meeting"

The Gangjin County Fisheries Cooperative is experiencing escalating internal conflict between the cooperative and its employees after the audit results requested by the cooperative, alleging embezzlement by an employee, were dismissed as 'no charges' by the Central Association. The employees have even announced plans for legal action on grounds of false accusation and defamation.

According to the Fisheries Cooperative on the 21st, the Korea Federation of Fisheries Cooperatives conducted an unscheduled audit from May 7 to 10 on A Manager of the Gangjin County Fisheries Cooperative regarding improper collection and execution of crane usage fees for seaweed purchase, and the result was all processed as 'no violation.'

The audit was conducted at the request of the cooperative to the Central Association.

Regarding the audit request that crane operation fees (a usage fee of 1,000 KRW per net) should be treated as cooperative revenue and executed according to internal procedures, it was determined that ▲ the fees were returned to the fishermen who operated the crane ▲ the crane usage fees have not been reflected in the cooperative's 'business plan and budget' from 2012 to the present for management ▲ considering the status of crane usage fees in other cooperatives and other relevant factors, it is difficult to regard the fees as cooperative revenue.

Also, the audit request that the crane usage fees were deposited into a personal bank account under Manager A's name and improperly executed was also decided as 'no violation.'

The Central Association judged that since the crane usage fees were deposited into Manager A's personal bank account with the consent of the seaweed producers' association fishermen who contributed to the fees, and the fishermen had no objections to the execution of the crane usage fees, it was difficult to impose audit sanctions solely on the grounds of personal account management and improper execution.

The police investigation on the same matter (suspected occupational embezzlement) was also concluded as 'no charges.' The police considered that the self-help funds for crane usage belong to all fishermen of the seaweed association rather than the cooperative's revenue, and since the execution was carried out with the consent of all fishermen, it was difficult to recognize occupational embezzlement charges against cooperative officials.

Although both the Central Association's audit and the police investigation on Manager A resulted in no charges, the conflict between the employees and the cooperative is worsening.

The employees are demanding the resignation of Cooperative Head B, citing that he was fined by the Labor Office for workplace harassment after threatening to discipline those who petitioned the Labor Office for supervision, that he was sent to the prosecution for assault after pushing and knocking down Manager A, and that he defamed the employees. They are also demanding the simultaneous resignation and apology of the non-standing auditor and directors.

Manager A stated, "All employees are pooling lawyer fees little by little to protect the employees who were falsely accused and to restore their honor through litigation."

In response, Cooperative Head B said, "There are opinions from directors that it is unacceptable that the whistleblower's story was not heard during the Central Association audit," and added, "The board of directors meeting to be held soon will decide on future actions."