South Korean Court Backs Bank’s Firing of Employee for Playing Crypto Games

A South Korean court has ruled in favor of a bank’s decision to terminate an employee who was found to be “habitually” playing crypto-based games. The Seoul Administrative Court’s decision reinforces the bank’s stance on conduct deemed unacceptable within its workforce, particularly regarding employees engaging in activities involving cryptocurrencies.

Bank’s Investigation Reveals Crypto Games and Private Lending

The case involves an unnamed bank and former employee who had been with the institution since 1997, ultimately advancing to a managerial position as head of lending at one of the bank’s branches. The employee’s career, however, came under scrutiny in 2022 when the bank initiated an internal investigation.

The bank’s audit revealed two main concerns: first, that the employee had engaged in private money-lending activities with some of the bank’s loan clients, and second, that they were a “habitual gambler” using crypto games as a form of gambling. While South Korea has stringent laws against online gambling, many citizens access such games through foreign platforms where cryptocurrencies are used as in-game currency.

Legal Proceedings: Former Employee Denies Claims of Habitual Gambling

After the bank dismissed the employee, the individual took steps to challenge the decision, appealing first to the bank’s central HR board and then to the Seoul Regional Labor Relations Commission. Both bodies rejected the appeal, leading the former manager to escalate the matter to the Seoul Administrative Court.

The ex-staffer argued that they were not a habitual gambler, clarifying to the court that they played “only one kind of PC game” and did so exclusively outside of working hours. Furthermore, they stated that they had not converted any crypto assets earned within the game into fiat currency, aiming to underscore that their actions did not equate to gambling. Additionally, the employee insisted that their private financial transactions with the bank’s clients were above-board and did not involve any unfair practices or preferential treatment.

South Korean Court Upholds Bank’s Dismissal Decision

After reviewing the case, the Seoul Administrative Court sided with the bank, affirming that the dismissal was valid. While detailed reasoning from the court has not been fully disclosed, the verdict suggests a strong stance against behaviors perceived as ethically compromising within the banking industry. In particular, the court’s ruling highlights the sensitive nature of cryptocurrency-related activities in South Korea, where authorities remain cautious about crypto’s potential for misuse in financial settings.

This case also emphasizes the country’s broader regulatory perspective, which frowns upon crypto-related gambling and requires banking institutions to maintain rigorous standards around employee conduct, especially when client trust is involved.

Broader Implications for Financial Sector Employees in South Korea

The court’s decision may have broader implications for South Korea’s financial industry, especially concerning the handling of employees involved in crypto-related activities. While the court’s judgment centered on gaming and private financial transactions, it also hints at the growing pressure on financial institutions to monitor staff behavior amid concerns about cryptocurrency’s potential risks.

In South Korea, where cryptocurrency regulations continue to evolve, this case serves as a reminder for bank employees and others in the financial sector to exercise caution. Institutions may face more scrutiny, and employees engaging in side activities that involve cryptocurrency, even recreationally, might find themselves subject to internal investigations or disciplinary actions.