Invest1 publisherNot yet confirmed elsewhere2 min readPublished
Three at the table, four in the rules: Seoul court voids trade secret dismissals
The Seoul Administrative Court held that a missing committee member and a skipped secret ballot void the dismissals of three R&D staff, whatever the strength of the leak allegations.
The Investor · Invest desk

What happened
- The Seoul Administrative Court's 12th Administrative Division ruled in June against Company A, which had sued to overturn a labour commission finding of unfair dismissal.
- Company A had dismissed three research and development staff for using company technology and assets to pursue a business in the same industry and for leaking trade secrets.
- The absent member later joined the other three to listen to a recording of the meeting before the discipline and its severity were decided.
Compiled by The InvestorSomething wrong?How this is made
Why it matters
- constraint Evidence of serious misconduct no longer buys an employer anything once the committee that decided it was improperly constituted, because the voiding rule operates independently of whether the...
- exposure Any Korean employer with HR procedure documents sitting in a shared regulations folder is now exposed to having them enforced against it, even where they were never announced or registered.
- decision A committee facing an absent member has to adjourn and reconvene rather than patch the gap with a proxy or a playback, because both fixes were tested here and both failed.
- precedent The next employer pleading that the misconduct was too grave for a missing ballot to matter has to get past a published rejection of that argument, resting on nothing more than the chance the vote...
The two repairs Company A attempted are the instructive part of the record. Having held the meeting with three members where its own rules set the quorum at four, one seat short [14], the company played the recording of the proceedings to the absent member afterwards, then had all four decide on the discipline and its severity [5]. The court treated that as a different act from attending: a disciplinary committee exists to give the person facing discipline a chance to present their case, and a member who listens to a tape cannot be said to have sufficiently guaranteed the right to defend oneself [11]. The second repair was a lawyer said to be exercising the absent member's delegated authority. The court found insufficient evidence of the delegation, and added that even if it existed, the rules could not readily be read to allow attendance to be handed to a third party [12].
The secret ballot reasoning is where the decision does its real work. The rules required an anonymous vote and none was taken [6]. The court's ground was counterfactual rather than substantive: without secrecy, members' freedom in decision-making was constrained, and the possibility that they might have decided differently cannot be ruled out [13]. Nothing in that test requires showing the outcome was wrong. It only requires that the outcome was not securely arrived at, which is why the company's argument that misconduct this serious made the missing ballot immaterial had nowhere to land [10], and why the reported principle is that serious procedural defects void a dismissal whether or not the grounds are established [2].
The finding that will travel furthest inside Korean HR departments is the quieter one. Company A argued its disciplinary management rules were not employment rules at all, because they had never been formally announced or registered [8]. The court held they were, on the basis that they had been posted in a company-wide regulations folder and were in effect, and that skipping a procedure for hearing employees' views does not by itself invalidate employment rules [9]. A manual written to organise management discretion became the yardstick management was measured against.
Count the forums: the Seoul Regional Labor Relations Commission rejected the employees' claim, the National Labor Relations Commission found the dismissals unfair [7], and the court in June refused to disturb that [1]. One result out of three went the employer's way [15]. And on the allegations that started it, the use of company technology and assets to run a competing business and the leaking of trade secrets [3], the reported decision records no judicial finding either way [16].
What to watch
- Whether Company A appeals, and whether an appellate bench reads the post-meeting recording playback more generously than the 12th Administrative Division did.
- Whether the three employees are reinstated or paid out, and whether Company A reconvenes a properly constituted committee on the same allegations.
- Whether Korean employers begin formally announcing or registering internal disciplinary manuals now that a shared-folder posting was enough to bind one.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence54
- Adoption
- Insufficient
- Hype gap+14
- Incentives
- Insufficient
- Confidence48
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
According to the legal community on the 23rd, the 12th Administrative Division of the Seoul Administrative Court, presided over by Chief Judge Kang Jae-won, ruled in June against the plaintiff in a suit filed by Company A against the chairman of the National Labor Relations Commission seeking to overturn a reexamination ruling on unfair dismissal relief.
- [2]
The ruling holds that, in principle, serious procedural flaws render a dismissal void regardless of whether the grounds for discipline are established.
- [3]
Company A approved the disciplinary dismissal of three employees on its research and development team, citing violations of its employment rules: using company technology and assets to pursue a business in the same industry, and leaking trade secrets.
- [4]
Under Company A's disciplinary management rules, a quorum for a disciplinary committee meeting requires at least four members; in practice only three attended, and the proceedings were recorded.
- [5]
Afterward, four committee members, including the one who had been absent, gathered separately to listen to the recording before deciding on the discipline and its severity.
- [6]
The anonymous secret ballot specified in the company's rules was not conducted.
- [7]
The dismissed employees filed for unfair dismissal relief; the Seoul Regional Labor Relations Commission rejected the claim, while the National Labor Relations Commission recognised flaws in the disciplinary process and found the dismissals unfair.
- [8]
Company A argued that its disciplinary management rules could not be considered employment rules because they had never been formally announced or registered as internal regulations.
- [9]
The court found the disciplinary management rules did constitute employment rules, explaining that they had been posted in a company-wide regulations folder and were in effect, and that failing to go through a procedure for hearing employees' opinions does not by itself invalidate employment rules.
- [10]
Company A stressed that it had recorded the meeting with the dismissed employees' consent, and that given the severity of the misconduct, the failure to hold an anonymous secret ballot alone could not render the dismissals void.
- [11]
The court said a disciplinary committee is a procedure that gives those facing discipline an opportunity to present their case, and that the mere fact the absent member listened to the recording cannot be seen as sufficiently guaranteeing the employees' right to defend themselves.
- [12]
Company A argued a lawyer delegated the authority of the absent committee member had attended; the court found insufficient evidence of the delegation and held that even if it existed, it was difficult to conclude the rules allowed authority to attend the committee to be delegated to a third party.
- [13]
The court ruled that the purpose of the secret ballot is to guarantee the secrecy of the vote so members can express their views freely, and that by failing to observe it the members' freedom in decision-making was inevitably constrained, with the possibility that their decisions might have differed not ruled out.
- [14]
The disciplinary committee meeting was one member short of the quorum set by the company's own rules.
- [15]
Across the three bodies that reviewed the dismissals, only one, the Seoul Regional Labor Relations Commission, decided in the employer's favour.
- [16]
The reported decision contains findings only on process and no judicial determination of whether the alleged trade secret leakage occurred, so the outcome does not depend on the allegations being substantiated.
Sources
1 independent publisher whose own reporting we read for this story.
- en.sedaily.comCourt Voids Dismissals Over Flawed Disciplinary Process
1 article · August 22, 2026
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