Je-wan Jeon CEO “The Cyworld is normalizing… Acquisition decision in February”

Je-wan Jeon, CEO of Cyworld, who overdue wages for its employees due to business difficulties, is heading to the court to attend a sentencing hearing held at the Seoul Eastern District Court in Songpa-gu on November 12 last year. yunhap news

Je-wan Jeon, CEO of Cyworld, who was an absolute powerhouse in domestic social network services in the 2000s and then went into the mobile era, said on the 21st, “It is expected that the acquisition will be decided in February.” At 10:30 am on the 21st, at the second trial on the charges of overdue wages (violation of the Labor Standards Act) held at the Seoul Eastern District Law. He also argued that Cyworld could be normalized.

CEO Jeon, who attended the trial on that day, suggested that there is a company that has announced its intention to take over Cyworld, saying, “It is likely that the funds will be executed in early March after the board of directors at the acquisition company finished.”

The former CEO is being tried on charges of not paying about 890 million won, including the wages and severance pay of 29 employees. Previously, after being sentenced to one year and six months in prison at the first trial on charges of overpaying the wages of 27 people, another employee was charged with arrears.

On that day, the former CEO explained that after the trial was over, “the situation has been concluded with an oral contract with a domestic company.” According to Jeon, the company that announced its intention to take over was discussing plans for financing and normalization of services. The former CEO’s plan is to hire a new employee, rebuild the server, and start service.

CEO Jeon said, “This is the stage in which the partner company is preparing funds for the acquisition. After raising funds, we will hold a general shareholders’ meeting next month to decide on the acquisition,” he said. He also said, “We plan to give priority to restoring the Cyworld server.” The company that negotiated the acquisition with the former CEO is known as a listed company related to IT.

On November 12, last year, when he was sentenced to 1 year and 6 months in prison, former CEO said, “I will give all of my shares to the acquirer for free, and give up about 3 billion won of personal funds lent to the company to save Cyworld.” At that time, domestic and foreign companies were considering the acquisition.

The first screen of the Korean SNS’Cyworld’. [싸이월드 캡처]

At the time, the court sentenced him to imprisonment, but did not imprison him, as the former representative said, “I will pay all the unpaid wages if the acquisition is decided.” If the takeover of Cyworld, promoted by the former CEO, is unsuccessful, arrests are inevitable due to imprisonment for overdue wages.

Reporter Jeong Jin-ho [email protected]