A South Korean appeals court sentenced Park Young-woo, former chairman of Dayou Winia Group, to four years in prison over large-scale unpaid wages and retirement benefits, taking him into custody immediately after the ruling. Park had been released on bail before the end of his earlier detention period while the proceedings continued.

Sentence
Four years in prison
Workers affected
670 employees
Unpaid compensation
About 50 billion won
Period covered
2020 through 2024

The Suwon High Court’s Criminal Division 2 found Park responsible in cases involving about 50 billion won owed to 670 employees of Winia Electronics, Winia and other group affiliates. The unpaid compensation accumulated between 2020 and 2024, according to the evidence presented in the case.

Two wage arrears cases that had proceeded separately at trial were combined for the appeal. Park had received four years in prison in one first-instance case and six months in the other. The appellate court set a single four-year sentence after merging the proceedings, rather than treating the earlier sentences as directly additive.

Court points to management responsibility

The court cited the scale of the arrears and the harm suffered by workers. It said Park, as the person effectively responsible for operating the businesses, had not made sufficient efforts to prevent the nonpayment. The judges also viewed his attempts to avoid responsibility during the proceedings as an aggravating factor because his management decisions had contributed to the arrears.

The sentencing decision also accounted for circumstances favorable to Park. The court noted that business conditions had deteriorated amid the Covid-19 pandemic and the war in Ukraine, that part of the overdue compensation had been paid, and that some workers did not seek punishment. The available evidence does not specify how much was repaid or how many workers withdrew their requests for punishment.

Four current or former chief executives of group affiliates who were prosecuted with Park received suspended prison sentences, with fines imposed on some of them. In a separate allegation, prosecutors accused company officials of transferring 1 billion won in corporate funds to Park’s personal account without a board resolution shortly before an application for corporate rehabilitation. The appeals court upheld the earlier not-guilty finding on that charge.