Daewoong Chairman to step down for insulting employees

Lee Han-soo  Published 2018.08.27  17:58  Updated 2018.08.27 17:58


Daewoong Pharmaceutical Chairman Yoon Jae-seung officially stepped down from his position after YTN, a local news outlet, released a recording of Yoon insulting employees with verbal threats during meetings.

According to the report, President Yoon cursed at the staff using phrases such as “psycho,” “crazy,” SOBs and other swear words.

After the report became public, Daewoong immediately released a statement, which contained Yoon’s apology.

“First of all, I sincerely apologize to everyone for my comments on YTN,” Yoon said in his apology letter. “I take full blame for my actions and have hurt company employees who presented themselves or attended meetings, with my rash words.”

Yoon noted that he would be leaving the management post immediately and take time to repent his actions.

“I sincerely apologize to the employees of Daewoong who have faith in me,” he added.

However, former and current employees of Daewoong did not seem surprised by the news report.

“Such insults happened on a regular basis at official meetings, and there were many employees stressed out because of it,” said a retiree of the company to Korea Biomedical Review, asking to remain anonymous. “Employees who gave reports in the CEO’s office had to endure insults, and did so in daily meetings, too.”

Another employee pointed out that Yoon removing himself from his management position was meaningless as Yoon holds executive positions at Daewoong’s subsidiaries. Currently, Yoon is one of the largest shareholders at Daewoong with 11.61 percent shares, 34.61 percent shares for Dien Company, 20.99 percent for Insung Info Corp. and 53.08 percent share for Blue Net.

As some of these companies own shares in Daewoong Pharmaceutical, some employees are stating that Yoon’s statement to step down from management is only a temporary measure to calm the controversy.

"Yoon said he would step down from the management. However, employees are wondering about the extent of his removal,” said an employee also demanding to remain anonymous. “This is because it is meaningless if he is merely talking about Daewoong Pharmaceutical.”

As Yoon announced his removal from management, Daewoong will now be run by two professional CEOs -- Jeon Seung-ho and Yun Jae-chun.

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