Mar 17 • 09:25 UTC 🇰🇷 Korea Hankyoreh (KR)

[Exclusive] DL Construction Fired Employees and Filed Criminal Charges Due to Unsold Properties

DL Construction has reportedly laid off multiple employees and pressed criminal charges against them following significant losses from unsold properties in various construction projects.

DL Construction, a leading construction company in Korea, faced substantial financial losses due to unsold properties from several projects in regions such as Busan, Gyeongnam, and Incheon. To address the fallout from these losses, the company dismissed seven employees from its development and housing business teams in early 2022 as part of a disciplinary action. The layoffs were attributed to allegations of inadequate verification of project acquisition prices and entering into false service contracts with project implementation companies, leading to significant business losses. However, the dismissed employees argued that they acted according to company protocols by reporting their actions to various departments before proceeding. According to statements from the labor commission, six of the seven fired employees received rulings of 'unfair dismissal,' with the labor bodies concluding that while some minor mistakes were made, they did not warrant termination. The commission emphasized that the approval process for business initiatives involved multiple meetings and that decision-making was not solely the responsibility of the employees. In an escalation of the situation, DL Construction has pursued criminal charges against four of the dismissed employees for breach of duty, embezzlement, fraud, and obstruction of business. The allegations involve failing to fulfill the company's verification obligations while estimating project acquisition prices and entering into fraudulent agreements. As the construction industry continues to struggle with economic challenges, this case highlights the ongoing tensions over accountability within the sector, especially given the broader context of recent downturns in the local real estate market.

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