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'Repeated concerns': Workers say Korea's top security firm delayed wages and screwed up taxes

Published: 17 Aug. 2025, 17:47

Korea Information Technology Research Institute President Yoo Joon-sang declares his candidacy for president of the Korean Sport & Olympic Committee in western Seoul on Dec. 28, 2020. [NEWS1]

The Seoul Gwanak District Office of Employment and Labor has launched an investigation into Yoo Joon-sang, president of the Korea Information Technology Research Institute (Kitri), related to repeated payment delays and failure to provide severance to a long-serving member.

Kitri, an institute under the Ministry of Trade, Industry and Energy, is widely regarded as one of Korea’s leading cybersecurity training organizations. It has produced many elite white-hat hackers — hackers who defend computer networks — with its members having competed in the Next-Generation Security Training Program, better known as BoB (Best of the Best).

An industry source said on Friday that the Gwanak office began reviewing claims last month that Kitri repeatedly failed to pay employees on time. The complaint, submitted by current and former members, alleges that from last year through this year, the institute delayed wages six times for 11 employees and failed to pay more than 100 million won ($72,000) in severance to a longtime employee who resigned this year.

The office also plans to examine whether Kitri mishandled year-end tax refunds, which were distributed nearly two months behind schedule both in 2024 and this year.

Despite Kitri's prominence in the security sector, internal disputes have mounted over unpaid salaries and deteriorating work conditions.

A Russian hacking underground newsletter [REUTERS/YONHAP]

Employees received their May and June 2024 salaries several days late. In January of this year, wages were not paid at all until the following month, forcing at least one employee to take out an emergency loan to cover rent.

In April, salaries were delayed again, prompting workers to file a formal petition with the labor office. But wage payments continued to be delayed by more than a week through June.

A total of 11 employees — nearly a third of Kitri’s members — experienced delays. All of them worked on education and training programs.

One former employee, who served for more than a decade and left the institute earlier this year, has still reportedly not received their severance pay more than two months after leaving. Under the Retirement Allowances Act, severance must be paid within two weeks of an employee’s departure.

Industry insiders point to Kitri’s financial struggles as the root cause. As a self-supporting nonprofit, Kitri must generate most of its revenue through government-contracted projects rather than direct subsidies.

Although the Ministry of Science and ICT allocated 9 billion won to Kitri this year, those funds are restricted to program expenses and cannot be used for staff salaries or operations who are unrelated to the programs.

“We feel deeply sorry for our employees,” a Kitri spokesperson said. “But as a nonprofit research institute focused on education, it is difficult for us to generate profit on our own.

“To keep our programs running, we desperately need operational funding from the government. We’ve been looking for a breakthrough for several years. Until government funding becomes available in March, we must rely solely on project income to cover all expenses, which causes severe shortfalls in the first quarter. January, in particular, is the hardest month.”

Still, criticism has mounted regarding Yoo's leadership.

“There have been repeated concerns that President Yoo, a former four-term lawmaker, appointed unqualified acquaintances and relatives to key posts, which damaged the institute’s operations,” one Kitri insider said on the condition of anonymity.

Kitri denied those claims.

“The allegations of parachute appointments are groundless,” a Kitri representative said. “We will fully cooperate with the investigation and provide all relevant facts regarding the wage-related complaint.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY OH SO-YEONG [[email protected]]