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Kum Yang |
[Alpha Biz= Kim Jisun] South Korean battery manufacturer Kum Yang Co., Ltd. is facing deepening financial distress, with ₩5.8 billion (≈ US$ 4.2 million) in unpaid wages and its CEO Ryu Kwang-ji under investigation for alleged labor law violations.
According to exclusive data obtained by the Digital Times from lawmaker Kim Wi-sang and the Busan Regional Employment and Labor Office, Kum Yang’s total wage arrears this year reached ₩6.98 billion, but only ₩1.18 billion (17%) has been cleared, including partial payments made through government relief funds.
As of October 2, 275 employees remain unpaid, most of them owed ₩5.44 billion in wages and ₩357 million in severance pay. Despite multiple administrative directives, the company failed to comply, leading labor inspectors to book CEO Ryu as a suspect on September 9. He was interrogated on October 15–16, and further legal action, including search warrants, is being considered.
The firm’s liquidity crisis has worsened due to four postponements of a planned ₩405 billion rights issue, now rescheduled for November 28, prolonging uncertainty over capital infusion and employee compensation.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
