Accused of Diverting Wages to Repay Debts, Play Golf, and Fund Overseas Trips
The Ministry of Employment and Labor Busan Northern Branch Office (headed by Min Gwangje) announced on the 17th that Chairman A (61) of a medical corporation has been arrested for violating the Labor Standards Act and the Act on the Guarantee of Employees’ Retirement Benefits. He is accused of withholding wages and retirement benefits totaling approximately 1.4 billion won from 105 employees at a nursing hospital in Buk-gu and another in Busanjin-gu, Busan.
According to the Busan Northern Branch Office, since January 2023, A delayed wage payments to numerous employees, including nursing assistants, citing business deterioration. However, investigations revealed that the nursing hospitals were operating normally and generating stable income. Despite this, A was found to have transferred corporate funds to his personal account or withdrawn them in cash for personal use.
Labor inspectors obtained a court-issued search and seizure warrant to track the accounts and discovered evidence that A had deliberately caused wage arrears. They subsequently requested a pre-arrest warrant from the prosecution.
The investigation found that A used corporate funds for hotel operating expenses after purchasing a hotel in 2021. Between 2023 and 2025, he used the corporate card to visit golf courses 27 times and spent corporate earnings on overseas travel expenses.
An official from the Busan Northern Branch Office stated, "We will continue to adhere to the principle of arresting business owners who habitually and egregiously withhold large amounts of wages," adding, "We will ensure that the perception takes root in the field that wage arrears are not a simple dispute but a serious economic crime equivalent to theft."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
