[English Translations for Global Clients - Success Case]

1. Case Overview

The client company discovered that its former CEO (the defendant) had transferred tens of millions of won from the company’s corporate account into his personal account for private use.

Following this discovery, the company filed a criminal complaint for occupational embezzlement, resulting in a final conviction in criminal court.

Based on that judgment, the company — represented by Taelim Law Firm — filed a civil lawsuit seeking damages for unlawful conduct (tort).

2. Taelim’s Assistance

Taelim’s legal team meticulously built the civil damages case on the basis of the criminal conviction.

By analyzing the financial transaction records and accounting data in detail, the attorneys proved that the defendant had transferred company funds to his personal account approximately 18 times and spent them for personal consumption unrelated to business activities.

They also demonstrated that the defendant had not repaid any portion of the misappropriated amount and that the company’s total financial loss amounted to approximately 100 million KRW.

Further, Taelim argued that as CEO, the defendant had severely breached his fiduciary duty as a “good manager,” emphasizing that even apart from the criminal conviction, he bore independent civil liability for damages under tort principles.

3. Case Outcome

The court fully accepted Taelim’s arguments, ruling that the defendant had intentionally committed an unlawful act and therefore was liable to compensate the plaintiff company for the resulting financial damage.

4. Significance of the Judgment

This case clearly established that a criminal act of occupational embezzlement by a former executive also constitutes a civil tort, giving the company the right to recover its losses through a damages claim.

Through Taelim Law Firm’s precise legal analysis and advocacy, the plaintiff company secured a firm legal basis to recover corporate assets lost due to the misconduct of former management.

The ruling underscores that corporate officers and CEOs who breach their duties and cause financial harm to the company can face personal liability, thereby reinforcing corporate accountability and protecting both the company’s assets and the authority of new management.

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If you’re facing a similar situation,

don’t hesitate to reach out to Taelim Law Firm for legal assistance.