Defendant shall be punished by a fine of KRW 1,000,000.

The above fine shall not be paid by the defendant.

A. In light of the legal principles, the Defendant, a representative director, was declared bankrupt on February 3, 2016, and C lost his/her power to pay retirement allowances to the employees listed in the annexed list 1 through 5, 7, and 9 before 14 days from the date of occurrence of the grounds for payment of retirement allowances, etc., the Defendant did not constitute a violation of the Labor Standards Act and the Labor Standards Act and the Workers’ Retirement Security Act for the said employees.

Nevertheless, the court below found the defendant guilty of this part of the facts charged, which is erroneous in the misapprehension of legal principles.

B. The punishment sentenced by the lower court (six months of imprisonment) is too unreasonable.

2. Judgment on the misapprehension of legal principles

A. Article 36 of the Labor Standards Act provides that an employer shall pay wages, compensations, and other money or valuables within 14 days from the time when the cause for payment occurred if a worker dies or retires, compelling the employer to liquidate legal relations early in order to promote the stability of the livelihood of retired workers, while suspending the period required for such liquidation. Thus, a violation of Article 109(1) of the Labor Standards Act due to delayed payment of retirement allowances is established at the expiration of 14 days from the date when the cause for payment occurred. Therefore, if a business owner is a juristic person, the representative who has the authority to pay retirement allowances, etc. at the expiration of 14 days is liable for the crime due to delayed payment, and the representative who lost the said authority before the expiration of 14 days shall not be liable for such crime (see Supreme Court Decisions 94Do1477, Nov. 10, 195; 200Do1477, Nov. 26, 2002). 205