The CEO of Altron, a manufacturer of automotive wheels, has been sentenced to 2.5 years in prison for failing to pay wages and severance to approximately 200 employees.
On September 22, the Jeonju District Court's Criminal Division 3-2, presided over by Judge Seo Su-jeong, upheld the sentence against Yoo, 60, who was charged with violations of the Labor Standards Act and the Severance Pay Security Act.
During the appeals process, the prosecution modified some charges, leading the court to overturn the original ruling but maintain the same sentence.
The court noted that Yoo had failed to pay a total of 6.5 billion won in wages and severance, affecting a significant number of workers.
"Wages are essential for the livelihood of workers and their families, while severance pay is crucial for post-retirement stability," the court stated, emphasizing the dual nature of these payments as both property rights and survival rights.
The court also pointed out that a considerable amount of time had passed since the crime, yet most workers had not seen any recovery of their losses. It concluded that Yoo had not made serious efforts to devise a concrete repayment plan to address the damages.
Yoo had pleaded for leniency, claiming he would sell the factory to pay the overdue wages. However, the court found that he failed to present a viable repayment plan, responding only that he was "trying" when asked about recovery efforts after the conclusion of the trial.
The company, located in Wanju County, has faced management difficulties, including unpaid electricity and gas bills, leading to repeated shutdowns and restarts of operations since 2024. By December of that year, all production lines had ceased, leaving over 200 workers without their wages and severance.
The first trial had deemed Yoo's actions serious, given the unpaid amounts and the number of affected workers, resulting in the same 2.5-year prison sentence and immediate incarceration.
Both Yoo and the prosecution appealed the verdict, with the prosecution seeking a 4.5-year sentence during the appeal.
Following the ruling, the Jeonbuk branch of the National Metal Workers' Union held a press conference outside the Jeonju District Court, criticizing the decision. The union claims the total amount of wage theft has reached 10 billion won.
The union stated, "Hundreds of affected workers are still without relief, yet the court has once again given a pass to the employer's excuses and evasion. Wage theft is not merely a failure to pay debts; it is a crime that undermines the survival rights of workers and their families."
* This article has been translated by AI.
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