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Kim Jung-rae, KNOC CEO |
The head of the Korea National Oil Corp. (KNOC) is facing mounting pressure to resign amid a scandal over alleged recruitment irregularities.
Union members at the state-run enterprise have been demanding CEO Kim Jung-rae quit for forcing subordinates to hire his acquaintances as senior managers early this year. The company has been reeling from snowballing losses following a number of failed oil exploration projects abroad.
The union began stepping up the pressure after the Board of Audit and Inspection (BAI) found earlier this week that Kim exerted undue influence to have his two associates hired.
But the CEO is refusing to step down, arguing he did nothing wrong.
"In order to add his acquaintances to the KNOC payroll, Kim forced company officials to fabricate their recruitment documents," a union official said. "He had insisted there was nothing wrong with the way his two associates were hired by the company. But the BAI's audit proves he has been lying all along."
After collecting signatures from 750 KNOC workers, the union filed a complaint with the BAI to investigate the company's hiring practices.
"This is not the only irregular activity Kim has orchestrated. More will be brought to light when the labor ministry completes its investigation into his unfair treatment of KNOC workers," the official said. "The government should fire Kim immediately."
On Tuesday, the BAI said Kim gave resumes of his two associates to the head of the firm's HR department in 2016, ordering him to hire the two as senior officials.
"During the recruiting process, the CEO was found to have pressured HR managers to make sure the two were hired. The two eventually got the jobs without having to undergo due processes," the agency said.
It also said Kim failed to uphold his managerial duty as head of a state-run organization, recommending the Ministry of Strategy and Finance and the Ministry of Trade, Industry and Energy to take the necessary steps concerning his position.
However, the former CEO of Hyundai Heavy Industries dismissed the BAI's findings, claiming the company did nothing wrong regarding how it employed his two acquaintances.
"I don't think there was anything wrong with the way they were recruited," he said. "They were hired to facilitate KNOC's efforts to restructure its business portfolio and organizational structure. I never told anyone to break the rules."
Since Kim became the CEO in February 2016, he has always been at odds with the union as he unilaterally pushed to introduce a performance-based pay system and other programs designed to slash employee welfare, according to the union. His three-year term will end in January 2019.