English translation of the original Korean report. Images and source documents may contain Korean text.

The union stated that automobile parts manufacturer Uchang Connecta transferred 55 units of its key production equipment to Mobase Electronics, a KOSDAQ-listed company, ahead of filing for bankruptcy. On the day the court declared bankruptcy, approximately 80 workers were notified of their dismissal.

According to the Korean Confederation of Trade Unions on the 10th, the dismissed workers began an indefinite occupation protest at the local office of Kim Min-seok, a Democratic Party of Korea representative, in Yeongdeungpo-gu, Seoul, appealing to Representative Kim to directly intervene in resolving the mass dismissal situation.

The Korean Confederation of Trade Unions claimed it was a ‘planned bankruptcy,’ stating that prior to the bankruptcy filing on December 29 last year, production equipment was transferred to Mobase Electronics and 79 sets of molds to an affiliate. They allege that key production assets were moved first, and then workers were dismissed along with the bankruptcy declaration on January 22 this year.

An internal Mobase Electronics document dated December 9 last year, disclosed by Representative Jung Hye-kyung’s office, states that the selection of a transfer company and the production of lines and inspection equipment are underway, and that production is scheduled to be completed by December 15.

As a result of comparing Mobase Electronics’ business report and semi-annual report, the tangible assets acquired from Uchang Connecta last year amounted to 511,013,644 won annually, with 71,775,440 won acquired in the first half.

Excluding the first-half amount, 439,238,204 won was acquired in the second half, when the bankruptcy application was filed, meaning approximately 86% of the annual acquisition amount was concentrated during this period.

■ Acquisition Amount Recorded in Disclosure: What Was the Equipment Transaction Price?

The disclosure only shows the total acquisition amounts for the half-year and full year; therefore, the individual transaction prices, acquisition dates, or current usage locations in which factory for the 55 units of equipment identified by the union could not be confirmed.

As of the end of June this year, the largest shareholder of Mobase Electronics is Mobase, a KOSDAQ-listed company, holding a 46.45% stake. Son Byeong-jun, CEO and Chairman of Mobase, is the largest shareholder of Mobase, with a 31.92% stake.

Mobase Electronics previously explained to Gyeongin Ilbo that it lost substantial control as Uchang Connecta changed from a subsidiary to an associate company.

Mobase Electronics directly held a 20% stake in Uchang Connecta at the end of last year, and judging that it also lost significant influence after the bankruptcy declaration, it disclosed that it excluded Uchang Connecta from its associate company investments during the first half of this year.

The Korean Confederation of Trade Unions demanded that the government and investigative agencies investigate the circumstances of asset transfers prior to bankruptcy, and that Mobase engage in dialogue to resolve the issues of the dismissed workers.