The Supreme Court has ruled that employees who accept bribes while sharing business risks with their employer cannot escape liability for damages caused to the company. Even if the employee experienced the same anxieties as the victim over performance, the court emphasized that the company’s harm remains significant and unignorable.
Details of the Bribery Case
In a decision from the court’s first division, a construction firm paid approximately 78 million won in bribes to an employee, identified as A, at a public procurement equipment firm known as Kis A. The bribes secured favorable bid evaluations and positioned the construction company as the preferred contractor.
A, who joined the public firm in March 2018, exploited company resources during a Busan Haewoon mega project executive meeting to assist another construction executive, B. This involvement led to A receiving illicit gains, including a high-ranking position and special treatment.
Court’s Analysis on Liability
The construction company later clarified its construction authority to A after the payments. Under Article 87-1 of the damage compensation law, companies can designate bribe recipients as third parties and pursue the victim’s claims for compensation. However, the justices determined A qualified as neither a mere bystander nor a true third party.
Examination of incidents, executive changes, and the victim’s claims revealed A’s deep involvement. The court noted that A handled operations intertwined with the victim’s responsibilities and shared the same fate regarding business outcomes.
The Supreme Court judge stated, “A does not fall under a third party in damage compensation law cases, and the company lacks authority to exercise the victim’s compensation claims on those grounds.”
Precedent and Broader Context
This ruling echoes a prior decision from the previous January, reinforcing that shared worries over the same business period do not constitute major damage exemptions for the company. Sources confirm the verdict underscores accountability for insiders in bribery schemes, regardless of aligned interests.
