Since early April 2010, some bosses of South Korean firms in HCM City have run away, leaving big debts and thousands of unpaid workers.

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The closed office of Shin Cap Co., Ltd. in HCM City.

The latest case happed at Jing Sang Vietnam Co., Ltd., a wholly-Korean invested jewelry processing company, on April 13. Employees went to work as usual and saw the factory was closed. They immediately reported this to authorities, who discovered that the Korean director ran away four days ago with some assets, leaving 67 workers without salaries for March 2010, totaling around 135 million dong ($7100).

This phenomenon has happened at other Korean firms in Vietnam. “Many Korean investors don’t have capital and stable orders. They rent factories and equipment and recruit workers in a short-lived manner. It is not strange when they lose money and then run away. Only Vietnamese workers suffer!” exclaimed Nguyen Van Trung, chair of the Labour Federation in District 12.

Another Korean firm, Shin Cap Co., Ltd. which produces hats in Binh Chanh district, has had 2-3 strikes annually because of salary and social insurance debts, though this firm began operating in 2005. Recently the director, Lee Seong Ho, ran away and the firm’s assets were seized. At that time, workers knew that their boss was burdened with debts to foreign partners.

“We don’t receive wages or bonuses, but the company assets were seized. We are penniless,” complained worker Nguyen Van Phuc.

Shin Cap still owes 113 million dong in salaries to 122 workers, plus 50 percent of the Tet bonus to 348 workers, worth over 172 million dong, and an additional 852 million dong of social insurance to the HCM City Social Insurance Bureau.

Similarly, the boss of Viet Anh Sang Co., Ltd., a Korean garment firm in Cu Chi district, ran away, leaving over 200 million dong of debt.

After many similar cases in 2009, HCM City authorities worked with representatives of the Republic of Korea consulate to establish measures in these situations, but reached an impasse. Since these are civil cases, Interpol cannot intervene and extradition can’t be used.

Notably, Korean firms with runaway bosses were already blacklisted for labour-related problems, but authorities took no action to prevent their activities.

“The Department of Planning and Investment only grants investment licenses and pays no attention after that,” commented an official in charge of labor in one HCM City district.

Such loose management results in runaway bosses returning home and leaving their debts and problems for workers and authorities to resolve.

Truc Ngon