How Should Foreign Companies Handle Employee Misconduct in Korea?

Short Answer

Foreign companies should handle employee misconduct in Korea through a careful, evidence-based, and procedure-sensitive process.

In Korea, disciplinary action, including warning, suspension, salary-related sanctions, demotion, or dismissal, generally requires a justifiable reason.

If the company decides to dismiss the employee, the dismissal must also satisfy strict legal requirements, including proper written notice of the dismissal reason and effective date.

For certain misconduct issues, such as workplace harassment or sexual harassment, employers may also have specific duties to investigate, protect the complainant, prevent retaliation, and take appropriate corrective measures.

The safest approach is to investigate first, preserve evidence lawfully, follow company rules, protect affected employees, and decide discipline only after reviewing proportionality and procedure.

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What Counts as Employee Misconduct?

Employee misconduct may include many different types of conduct, such as:

• theft or misuse of company property;
• fraud or false reporting;
• harassment or workplace bullying;
• sexual harassment;
• conflicts of interest;
• unauthorized disclosure of confidential information;
• trade secret misappropriation;
• serious insubordination;
• repeated attendance issues;
• violation of IT or data protection policies;
• workplace violence or threats;
• compliance or ethics violations.

The appropriate response depends on the seriousness of the misconduct, the employee’s role, the evidence, the company’s rules, and the impact on the workplace.

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Should the Company Investigate Before Taking Disciplinary Action?

Generally, yes.

Before imposing discipline, the company should usually confirm the facts through a reasonable investigation.

A proper investigation may involve:

• identifying the allegation;
• preserving relevant evidence;
• interviewing witnesses;
• reviewing documents and system records;
• giving the accused employee an opportunity to respond where appropriate;
• maintaining confidentiality; and
• documenting the process.

A rushed disciplinary decision based on incomplete facts may be difficult to defend later.

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How Should the Investigation Be Conducted?

The investigation should be purpose-based, limited, and documented.

Employers should define:

• what misconduct is being investigated;
• who is involved;
• what evidence is relevant;
• what period is being reviewed;
• who may access investigation materials;
• how personal information will be protected; and
• who will make the final decision.

If the investigation involves emails, messenger logs, CCTV, access records, or device data, the company should also consider Korean privacy and personal information laws.

The company should avoid unnecessary or overly broad collection of employee information.

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Are Workplace Harassment and Sexual Harassment Different?

Yes.

Workplace harassment and sexual harassment require special care.

When an employer receives a complaint or becomes aware of potential workplace harassment, the employer should take steps to confirm the facts, protect the complainant where necessary, and take appropriate measures based on the investigation results.

Sexual harassment complaints also require careful handling, including protection against retaliation, confidentiality, and appropriate action against the offender where misconduct is confirmed.

In these cases, failing to investigate or allowing secondary harm may create additional legal risk for the company.

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Can We Immediately Dismiss an Employee for Misconduct?

Sometimes, but immediate dismissal should be approached cautiously.

Even where misconduct is serious, the employer should consider:

• the nature and seriousness of the misconduct;
• the employee’s position and responsibilities;
• the degree of harm to the company or others;
• whether the employee acted intentionally;
• whether company rules were clearly violated;
• whether similar cases were handled consistently;
• whether lesser discipline would be sufficient; and
• whether required procedures were followed.

In Korea, dismissal is generally reviewed under a strict standard. The employer should be able to show that continued employment became difficult under the circumstances.

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What Procedures Should the Company Follow?

The company should first review its own employment documents.

Important documents may include:

• employment contract;
• work rules;
• disciplinary rules;
• code of conduct;
• anti-harassment policy;
• IT and data protection policies;
• whistleblowing policy;
• investigation protocol;
• collective bargaining agreement, if any.

If company rules require a disciplinary committee, hearing, written notice, or opportunity to respond, the company should follow those procedures carefully.

Failure to follow mandatory internal procedures may weaken or invalidate the disciplinary action.

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What Evidence Is Important?

Useful evidence may include:

• complaint records;
• investigation reports;
• witness interview notes;
• emails and messages;
• CCTV or access logs, where lawfully collected;
• attendance records;
• IT system records;
• financial records;
• prior warnings;
• policy acknowledgements;
• disciplinary committee minutes; and
• written communications with the employee.

Evidence created at the time of the incident or investigation is usually more persuasive than documents created later.

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How Should Discipline Be Decided?

Discipline should be proportionate.

The company should consider:

• whether misconduct actually occurred;
• whether the evidence is reliable;
• whether the employee violated a known rule;
• whether the employee had an opportunity to explain;
• whether similar misconduct was treated similarly;
• whether the sanction is proportionate; and
• whether dismissal is truly necessary.

For serious misconduct, dismissal may be possible. For less serious misconduct, warning, suspension, transfer, training, or other measures may be more appropriate.

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What If the Employee Challenges the Discipline?

An employee may challenge dismissal or other serious disciplinary action before the Labor Relations Commission or through court proceedings.

If the dispute proceeds, the company should be prepared to show:

• the factual basis for the misconduct;
• the investigation process;
• the applicable company rules;
• the reason for the disciplinary decision;
• procedural compliance;
• proportionality of the sanction; and
• consistency with past practice.

A well-documented process is often the strongest defense.

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Practical Checklist for Foreign Companies

When handling employee misconduct in Korea, employers should ask:

• What specific misconduct is alleged?
• Is immediate action needed to protect employees or evidence?
• What company rules apply?
• Is a formal investigation required?
• Has relevant evidence been preserved lawfully?
• Are privacy and personal information issues controlled?
• Has the employee been given an opportunity to respond where appropriate?
• Are workplace harassment or sexual harassment duties involved?
• Is the proposed discipline proportionate?
• Were similar cases treated consistently?
• Has the decision been properly documented?
• Does dismissal require written notice and advance notice or payment in lieu?

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Practical Takeaway

Employee misconduct should not be handled informally or emotionally.

Foreign companies should use a structured process: investigate, protect affected employees, preserve evidence, follow internal rules, evaluate proportionality, and document the decision.

This approach reduces the risk of unfair dismissal claims, retaliation claims, privacy disputes, and challenges to disciplinary action.

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Conclusion

Employee misconduct in Korea should be handled through a legally careful and procedurally fair process.

Employers should avoid rushing to dismissal without confirming the facts, reviewing company rules, and assessing whether the sanction is proportionate.

For foreign companies, the most defensible approach is to combine a fair investigation, lawful evidence collection, careful documentation, and consistent disciplinary decision-making.

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