Winia Electronics files for corporate restructuring, CEO detained for delayed salary payments, etc. - South Korea

On the 20th, Winia Electronics (formerly Winia Daewoo), a mid-sized Korean consumer electronics manufacturer, applied for corporate restructuring procedures. Plans to find a buyer for the company through mergers and acquisitions (M&A) before the procedure is approved
is. After Daewoo Group went bankrupt due to the Asian currency crisis, the company passed through Dongbu Group and was acquired by Daewoo Winia Group in 2018. However, there was a delay in responding to the increasingly high-end home appliance market, and competition
I lost my competitiveness. Due to the expiration of the trademark rights agreement, the company removed the "Daewoo" sign from its name and entered the overseas market, and was struggling, but overseas factories were closed due to the spread of the COVID-19 virus. The company's management is said to be paralyzed.
cormorant. Furthermore, on the 20th, the Suwon District Court ruled against the company's CEO Park Hyung-cheol, who is suspected of violating the Labor Standards Act, saying, ``He is suspected of destroying evidence, and as a U.S. citizen, there are concerns that he may flee.''
The detention was extended. The company did not pay severance pay to retired employees due to financial difficulties, and payments to current employees have been delayed since September last year. The amount of damage caused by delayed payment is based on wages and other means.
The salary will be 13.3 billion won (approximately 1,475.53 million yen) and the retirement allowance will be approximately 16.9 billion won (approximately 1,875.22 million yen), for a total of 30.2 billion won (approximately 3,351.71 million yen).
In talks with the labor union in June, Park agreed to pay the unpaid four months' salary until July, but the deadline has not been met.
He had broken his promise several times.