South Korean Court Upholds Dismissal of Bank Employee for Crypto Gaming
A recent ruling from a South Korean court has validated a bank’s decision to terminate a long-time employee over allegations of habitual participation in cryptocurrency games. The Seoul Administrative Court sided with the bank in a lawsuit regarding the employee’s dismissal, which took place in 2022.
Background on the Dismissal
Details surrounding the case have emerged while keeping the identities of both the bank and the employee confidential. The former bank worker, who began their career in 1997, eventually rose to the position of head of lending at one of the institution’s branches. However, in 2022, the bank initiated an investigation that ultimately led to the employee’s termination.
Findings of the Internal Audit
The bank’s internal audit uncovered that the employee was involved in “inappropriate private money lending” to the bank’s clients. Additionally, the bank accused the employee of being a “habitual gambler” engaged in online gambling games that utilized cryptocurrency as an in-game currency. Such activities are classified as illegal under South Korean law; nonetheless, many citizens circumvent this law by utilizing foreign online platforms and servers.
Appeals and Legal Proceedings
After being dismissed, the former employee sought to contest the decision, first by appealing to the bank’s central human resources board, which rejected their claims. Following this, the individual approached the Seoul Regional Labor Relations Commission, seeking a resolution on the grounds of unfair dismissal. This sequence of appeals eventually led to a lawsuit being filed by the former employee against the bank.
The Employee’s Defense
During the court proceedings, the ex-staffer argued, “I only played one kind of PC game, and I did so after work hours. Furthermore, I did not convert the game’s crypto assets into fiat. So what I did cannot be considered habitual gambling.” The individual also asserted that they had never profited unjustly or provided any preferential treatment in their financial dealings with clients.
Court’s Rationale and Decision
Despite the defenses put forth by the former employee, the court upheld the bank’s decision to terminate their employment. Justice Kang Jae-won, presiding over the case, stated, “All grounds for disciplinary action against the plaintiff are acknowledged, and the disciplinary action does not seem excessive considering the degree of misconduct.”
Moreover, the court emphasized that the gambling activities of bank employees, even if conducted outside of work hours, are deemed “undignified.” The ruling highlighted the moral implications of gambling, with the court declaring, “Gambling is immoral and should be condemned in itself.”
Conclusion and Broader Implications
The court’s decision concluded that the employee’s engagement in gambling had led to significant financial losses, potentially affecting their work performance. It further noted the elevated risks within the financial sector, where employees may resort to criminal activities, such as embezzlement, in an attempt to recover gambling losses. Overall, this case serves as a stern reminder of the expectations and moral standards placed on employees within the banking industry in South Korea.