Where the labor contract relationship has already been terminated at the time of demand for distribution, the scope of wage claims recognized as preferential under the former Labor Standards Act.

The scope of wage claims subject to the protection of the right to preferential reimbursement under Article 37(2)1 of the former Labor Standards Act (amended by Act No. 8372 of Apr. 11, 2007) refers to the unpaid wage out of the wages for which grounds for payment arose retroactively from the termination of the labor contract where the labor contract relationship between the employee and the employer has already terminated at the time of demanding a distribution of wage claims.

Article 37(2)1 of the former Labor Standards Act (amended by Act No. 8372 of Apr. 11, 2007) (see current Article 38(2)1 of the former Labor Standards Act)

Supreme Court Decision 98Da47412 delivered on April 9, 1999

Korea Standards Bank, Inc., the Bank of Korea

Defendant

Busan District Court Decision 2005Na6652 delivered on November 25, 2005

The appeal is dismissed. The costs of appeal are assessed against the Defendant (Appointed Party).

The grounds of appeal are examined.

The scope of wage claims protected by the special right to preferential reimbursement under Article 37(2)1 of the former Labor Standards Act (amended by Act No. 8372 of Apr. 11, 2007; hereinafter the same) refers to the unpaid wage out of the wages for which the cause for payment occurred between three months retroactively from the termination of the contract where the labor contract relationship with the employee and the employer was already terminated at the time of demanding a distribution of the pertinent wage claims (see Supreme Court Decision 98Da47412, Apr. 9, 199).

In light of the above legal principles and the records, the court below's adopted evidence found that the plaintiff was the first-class mortgagee on the real estate of this case owned by the non-party corporation, that the plaintiff paid dividends of 2,635,59,975 won on January 21, 2005 due to the plaintiff's exercise of the above right to collateral security, that 23 workers, including the defendant (appointed party; hereinafter "the appointed party") and the appointed parties, worked for the non-party corporation, were terminated at around October 203, and that there was no error in the misapprehension of legal principles as to 80,52,84 won on the total amount from May 203 to 10, 2003, 300, 300, 300,000 won, 30,000,000 won, 30,000 won, 10,0000 won, 30,000,000 won, 10,003,06,00.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Park Si-hwan (Presiding Justice)