"Although Registered Under Family Members' Names, They Were Involved"
Court Rules Disciplinary Suspensions Are Justified
Employees of Korea Electric Power Corporation (KEPCO) who were disciplined for engaging in solar power generation as a side business filed a lawsuit against the company seeking to overturn their disciplinary actions, but the court did not accept their claims.
The 14th Civil Division of the Gwangju District Court (Presiding Judge Im Sol) announced on the 4th that it had dismissed all claims filed by four KEPCO employees, including an individual referred to as A, in a lawsuit seeking confirmation of the invalidity of their suspension.
A and the other employees established and operated solar power plants under the names of their spouses, children, or mothers, but were discovered during an internal investigation in 2023. At the end of the same year, they received disciplinary suspensions ranging from three to six months.
KEPCO has internal regulations prohibiting employees from engaging in solar power generation as a side business. Even if the business is registered under a family member's name, if it is confirmed that the employee was substantively involved, disciplinary actions ranging from suspension to dismissal may be imposed.
In response, A and the other employees argued that "the power plants were merely businesses registered under family members' names, and we were not involved in the operations." They also claimed that "the statute of limitations for disciplinary action had expired," and demanded the cancellation of the disciplinary measures and payment of wages during the suspension period.
However, the court did not accept their arguments. The court found that "there is evidence that the plaintiffs were directly involved in the operation of the solar power business, such as financing and on-site inspections." The court also determined that, since the business was still in operation at the time of the disciplinary action, the three-year statute of limitations for disciplinary measures had not expired.
The court stated, "KEPCO repeatedly informed employees in advance of the prohibition on holding side jobs, and A and the others also signed and submitted written pledges to comply with this obligation," adding that "the disciplinary actions were justified."
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