Taekwang Industrial, Heungkuk Life, and Heungkuk Fire Union Statement
"Workplace Bullying, Personnel Manipulation, and Misconduct"
The labor unions of Taekwang Group affiliates Taekwang Industrial, Heungkuk Life Insurance, and Heungkuk Fire & Marine Insurance have called for severe punishment of former Management Council Chairman Kim Ki-yu, who is accused of ordering a "15 billion won fraudulent loan."
On the 13th, the three unions claimed in front of the Heungkuk Life Insurance Building in Jongno-gu, Seoul, that during Kim's tenure overseeing group management, he threatened employees' livelihoods and destroyed organizational culture through workplace bullying, personnel manipulation, and misconduct.
The labor unions of Taekwang Group affiliates Taekwang Industrial, Heungkuk Life Insurance, and Heungkuk Fire & Marine Insurance held a rally on the 13th in front of the Heungkuk Life Insurance Building in Jongno-gu, Seoul, demanding strict punishment for Kim Ki-yu, former chairman of the Management Council, who is accused of ordering a fraudulent loan of 15 billion won. (Provided by Taekwang Industrial Labor Union Council)
Park Young-dae, chairman of the Taekwang Industrial Petrochemical Labor Union, stated, "Kim Ki-yu's dehumanizing verbal abuse and insults are so well-known within the company that no one is unaware," adding, "Countless employees have left the company due to his oppression and abuse of power." He further condemned, "Kim Ki-yu's actions are grave crimes that destroyed the corporate culture and employees' lives."
Park also emphasized, "The management corruption revealed through group audits and prosecution investigations clearly shows that Kim Ki-yu was not a 'professional manager' but a 'professional fraudster,'" and stressed, "Strict punishment of Kim Ki-yu is the starting point for Taekwang Group's rebirth."
Kang Ho-sung, chairman of the Taekwang Industrial Metal General Labor Union, exposed Kim's management corruption by citing the demolition work of Ulsan Spandex Plant 2, owned by Taekwang Industrial and Daehan Hwasum. He criticized, "Contracts were made to inflate construction costs by tens of billions of won by awarding the work to an acquaintance's company, while selling scrap metal at less than half its value. In particular, upon a request from the acquaintance to buy scrap metal from other demolition projects cheaply, a price 3 billion won lower was set."
The Heungkuk Life Insurance union also appealed that employees suffered due to Kim's verbal abuse and abuse of power. The union stated, "All members experienced severe mental distress due to arbitrary personnel decisions and unfair work orders," adding, "Some employees were driven to tragic situations leading to extreme choices."
The union listed Kim's misconduct as five points: ▲ introduction of unjustified personnel systems ▲ indiscriminate disciplinary actions ▲ large-scale workforce reductions without notice ▲ non-payment of performance bonuses ▲ forced dismissal of a large number of executives.
The union emphasized, "Kim Ki-yu used management consulting as a weapon to forcibly dismiss about 200 employees overnight," adding, "Countless workers' families were inevitably exposed to economic ruin without any time to prepare."
The Heungkuk Fire & Marine Insurance union also pointed out in a statement, "In 2022, Kim Ki-yu forcibly dismissed 13 out of 15 executives, including the CEO, causing tremendous chaos," and noted, "Even after leaving the group, he has left serious aftereffects on Heungkuk Fire & Marine Insurance."
Meanwhile, employees of the savings banks affected by the '15 billion won fraudulent loan' also condemned Kim's illegal actions in a separate statement. The labor-management council workers of Yegaram Savings Bank stated, "Kim Ki-yu ordered a fraudulent loan of over 10 billion won, causing serious damage to the company and its employees," and pointed out, "This severely impacted the company's profitability and soundness, leading to a deterioration of overall management indicators."
The labor-management council of Goryeo Savings Bank, representing employees, also declared, "Kim Ki-yu trampled on the duties of a good manager that financial institution employees must uphold, causing massive losses," and strongly demanded, "Immediate arrest and strict punishment of Kim Ki-yu."
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