A South Korean company in HCM City has suddenly halted operations after its director disappeared, leaving the firm owing salaries and social insurance totalling USD809,523 to more than 1,000 workers.
Workers of Keo Hwa Vina Company
The Keo Hwa Vina Company was already unpopular for paying its workers late or a smaller proportion of their salaries than agreed in the period leading up to the closure, with the management claiming it was due to financial difficulties.
Vo Phuoc, who has worked at the company for five years, said, “The company promised to pay the remaining salaries of VND4 billion by September 25, however, it stopped operations on September 12. We’ve heard that the director Koo Sun Heau has run away to South Korea; so how could we be paid?”
Nguyen Van Giao, Director of Hoc Mon District’s Social Insurance, said that since 2014, the company has continuously delayed its social insurance payments which have reached VND13 billion.
The local Department of Labour, Invalids and Social Affairs won its case against the Keo Hwa Vina Company to retrieve the debt, but the firm apparently only has VND34 million in its account.
According to a department representative, Keo Hwa Vina Company started operations in 2007. The South Korean firm apparently suffered difficulties and was forced to sell off part of its production facilities to another company for VND13 billion. So far only VND5 billion of the agreed payment was paid.
“The two sides completed all procedures but the director of Keo Hwa Vina has disappeared, so management agencies have no reason to demand the remaining VND8 billion”, he added.
Hoc Mon District has urged local police to closely supervise the company to prevent fixed assets from being moved abroad, although a local sale would probably be a more likely occurrence.