[Exclusive] Arrest warrant for Kumyang CEO rejected as unpaid wages swell to 12 billion won

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[Financial News] The Busan Regional Employment and Labor Office sought an arrest warrant for Ryu Kwang-ji, CEO of the Busan battery maker Kumyang, after the company’s unpaid wages climbed to about 12 billion won amid a looming delisting risk. The request was rejected because there was no concern that he would flee or destroy evidence. The labor office plans to decide on its next investigative steps after internal discussions.
The Busan Northern District Office of the Ministry of Employment and Labor said on the 4th that it had applied for the warrant in mid-last month, but the court turned it down. The court is understood to have made the decision because the labor office had secured evidence of unpaid wages and Kumyang was still carrying on with its business.
According to the labor office, Kumyang’s unresolved unpaid wages stood at 11.9 billion won as of February. A total of 313 current and former employees had not been paid. According to People Power Party lawmaker Kim Wi-sang, the unpaid wage amount was 6.9 billion won as of October last year, meaning it increased by more than 5 billion won in just four months.
The labor office booked Ryu last September. He was then summoned as a suspect and questioned. Under its procedures, the labor office normally sends a case to prosecutors within two months after booking, but it has extended the deadline several times for additional investigation and has not yet referred the case.
“If the arrest warrant had been issued, the case would have had to be sent to prosecutors within 10 days, so the investigation seems to be nearing its final stage,” a Busan Regional Employment and Labor Office official said. “A reapplication for the warrant appears unlikely. For the court to issue it again, new facts or evidence would have to be found that could overturn the previous ruling.”
huni@fnnews.com Baek Chang-hoon Reporter