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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] A former vice president of Shinhan Card has been given a suspended prison sentence in a first-instance ruling for manipulating the company’s recruitment process to unfairly hire the daughter of an affiliate executive.
According to a report by Yonhap News Agency on April 5, the Seoul Central District Court sentenced the former executive, identified only as A, to six months in prison, suspended for two years, on charges of obstruction of business.
The defendant was indicted in April 2022 for intervening in Shinhan Card’s 2016 entry-level hiring process at the request of an affiliate company president. Prosecutors said A instructed HR personnel to give the applicant an additional opportunity after learning she had ranked near the bottom in the first-round interview.
At the time, Shinhan Card’s recruitment process consisted of document screening, a first-round practical interview, a second-round executive interview, an internship, and a final interview.
Following A’s directive, recruitment staff altered evaluation records, changing the applicant’s ranking from 8th out of 9 candidates to 4th, enabling her to pass the next stage and ultimately secure a position.
The court found the defendant guilty, stating that hiring irregularities undermine fairness in society by depriving qualified candidates of opportunities and eroding trust in merit-based systems.
“Such practices inflict a sense of loss and defeat on young job seekers striving to succeed through their own efforts and abilities,” the court said, adding that a strict penalty was warranted given the defendant’s senior position at a major financial institution.
However, the court also considered mitigating factors, including the defendant’s lack of prior criminal record, age, and motive, in issuing a suspended sentence.
The defendant has appealed the ruling.
The broader investigation into hiring irregularities at Shinhan Financial Group affiliates began in 2018 after the Financial Supervisory Service uncovered suspected preferential hiring practices at several units, including Shinhan Bank, Shinhan Card, Shinhan Capital, and Shinhan Life Insurance.
In a related case, former Shinhan Card CEO Wi Sung-ho was sentenced in August last year to 10 months in prison, suspended for two years. Meanwhile, former Shinhan Financial Group Chairman Cho Yong-byeong was acquitted by the Supreme Court of Korea in June 2022.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
