A South Korean court has upheld a bank’s decision to dismiss an employee for repeatedly engaging in crypto gambling, marking a significant legal stance on workplace conduct related to digital currency-based games.
According to Fn News, the Seoul Administrative Court ruled in favor of the bank in a lawsuit over the 2022 firing of an employee. The court’s decision followed an investigation into the worker’s conduct, which included accusations of playing crypto gambling games during work hours.
Employee Fired for “Habitual” Crypto Gambling
The identity of the bank and the employee involved in the case have not been disclosed. The former employee had worked at the bank since 1997 and had risen to the position of head of lending at one of its branches. However, an internal audit launched in 2022 uncovered the employee’s involvement in “habitual gambling” through online games that use cryptocurrency as in-game currency.
Although crypto gambling games are illegal in South Korea, many players use overseas servers or foreign platforms to bypass local restrictions. In addition to the gambling activity, the bank’s investigation also found that the employee had engaged in “inappropriate private money lending” with the bank’s loan clients.
The employee initially challenged the dismissal decision, appealing to the bank’s central HR board, which rejected the case. The former staff member then escalated the matter to the Seoul Regional Labor Relations Commission, claiming the dismissal was unfair.
Former Employee Denies Gambling Allegations
In response, the ex-employee insisted that their actions did not warrant dismissal. In court, the individual argued that they had only played a single PC game outside of working hours and had not converted the in-game cryptocurrency into real money. “I am not a habitual gambler,” the ex-employee told the court, adding that they had not gained any unfair profits from personal financial transactions with the bank’s clients.
Despite these arguments, the court sided with the bank, agreeing that the dismissal was justified. Justice Kang Jae-won, who presided over the case, stated that the grounds for disciplinary action against the employee were valid, and the decision to terminate employment was not “excessive” given the severity of the misconduct.
Court Cites Immorality of Gambling and Its Impact on Work Efficiency
The Seoul Administrative Court also noted that while the employee’s gambling did not directly interfere with their work, it was still deemed “undignified” for a bank employee to engage in crypto gambling. The court emphasized that gambling is inherently immoral and should be condemned.
Furthermore, the court expressed concern that the employee’s significant financial losses from gambling could have negatively impacted their professional performance. The ruling highlighted the potential risks in the financial sector, noting that employees who gamble may be more likely to engage in unethical practices, such as embezzlement, in an attempt to recover their losses.
Legal Implications for Crypto Gambling in South Korea
This case underscores South Korea’s strict stance on crypto gambling, despite its growing popularity among online users who seek to circumvent local regulations. The court’s decision also reinforces the expectation that employees in the financial industry uphold a high standard of conduct, both inside and outside of the workplace.
As the use of cryptocurrency continues to rise, this ruling may set a precedent for how future cases involving crypto gambling or other digital asset-related misconduct are handled in the country’s legal system.
