労働 Wage Claim Won Against Operators Using Corporate Name Changes to Avoid Payment

Law Firm Taelim success case | Successful wage claim

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The client was hired by an academy and worked diligently for a long period. However, the director and assistant director, who were spouses, engaged in irregular operations by splitting employment contracts under the pretext of tax issues and frequently changing corporate names. They repeatedly made corporations intentionally insolvent to avoid compulsory execution and then established new corporations to succeed the business. As a result, the client suffered damage by not receiving approximately KRW 60,000,000 in wages and severance pay by the time of resignation.

The attorneys at Law Firm Taelim went beyond merely claiming unpaid wages and provided strategic assistance to neutralize the opposing parties?? subtle abuse of corporate personality. Taelim logically proved that the defendant company was merely nominal and that the director and assistant director operated it like a one-person company while misusing corporate assets.

Taelim organized, in chronological order, how the defendants abandoned insolvent corporations, established new corporations, and avoided responsibility, emphasizing that the defendant was the substantive entity that should succeed to the debts of the former corporation. Taelim submitted as evidence the results of the Ministry of Employment and Labor petition, records of referral with an opinion for indictment, the amount of unpaid wages confirmed by the investigative authority, and a written debt repayment memorandum personally prepared by the director, eliminating room for excuses.

Taelim also presented the director??s ongoing criminal trial to the civil court, strongly arguing that the defendants?? conduct was a typical case of unpaid wages and violation of the Labor Standards Act.

The court accepted all of Law Firm Taelim??s arguments and issued a judgment fully granting the client??s claims. The court clearly held that the defendant corporation and the actual operators were jointly and severally obligated to pay the full amount of unpaid wages and severance pay.

This case is significant because it held malicious employers strictly accountable for repeatedly changing corporate names to avoid paying wages, which are essential to workers?? livelihoods. By neutralizing the attempt to hide behind corporate personality through sharp legal response, Taelim opened a path for the client to receive rightful compensation for labor.

** If you are facing difficulties similar to the case above, please contact Law Firm Taelim at any time.