What is the key to preparing a legal response regarding the deletion of data by a departing employee?

Article posted in 2024-12-05 15:08:37 | VEAT

Law firm Veat received a request from small-to-medium enterprise A (hereinafter "the client") regarding legal measures against a departing employee.

​If an employee deletes data on a company-provided laptop after leaving, this goes beyond simple data deletion and can potentially cause serious loss to the company’s interests. Law firm Veat explored suitable legal measures for the client in this situation, conducting a multi-faceted review from both criminal and civil perspectives.

  • Review of charges including destruction of electronic records and obstruction of business

"Criminal Code"

Article 314 (Obstruction of Business) ① Anyone who obstructs another’s business by means or force as stipulated in Article 313 shall be sentenced to imprisonment for not more than five years or a fine of not more than 15 million won.

② Whoever destroys computer information processing devices or electronic records and special media records, enters false information or improper commands into an information processing device, or causes other impairments to information processing, thereby obstructing another's business, shall be subject to the penalty stipulated in paragraph 1.

Article 366 (Destruction of Property, etc.) Whoever destroys, conceals, or otherwise renders useless the property, documents, or electronic records and special media records of another shall be sentenced to imprisonment for not more than three years or a fine of not more than 7 million won.

First, we reviewed the possibility that the departing employee’s actions constituted the crime of destruction of electronic records as a representative legal measure available from a criminal perspective. The crime of destruction of electronic records is a provision that punishes actions that harm the interests of others by damaging, modifying, or deleting data stored on an information and communication network or electronic recording medium.

​In the client’s case, the departing executive deleted all data stored on the laptop while initializing it, which clearly had the potential to violate this provision. Furthermore, if key company data disappeared, causing disruption to business operations, it could also be linked to the charge of obstruction of business. The obstruction of business is stipulated in Article 314 of the Criminal Code, which punishes acts that obstruct another’s business. Therefore, the client considered whether it could hold the departing employee legally responsible through these criminal measures.

  • Review of liability for damages based on unlawful acts under the Civil Code

In addition to criminal measures, we also reviewed civil remedies. If the departing employee’s data deletion caused the company to suffer monetary or non-monetary losses, it could serve as a basis for holding them liable for damages based on unlawful acts under the Civil Code.

Based on this possibility, Law firm Veat reviewed with the client whether to file a civil claim for damages and provided detailed guidance on the requirements for practically implementing it.

Law firm Veat reviewed the purpose of the departing employee's data deletion and whether actual damage occurred as a result. In particular, if the departing executive had verbally promised not to delete or externally leak the company's key data through a shareholder agreement or similar internal contract, we reviewed the possibility of additional measures based on the breach of that contract. Accordingly, we checked the obligations stipulated in the pre-existing employment contracts, confidentiality agreements, shareholder agreements, etc., related to the client’s case, and checked whether there were any clauses that would serve as a basis for a breach of contract.

We also researched and provided key court precedents recognizing civil and criminal liability in similar cases as a basis for developing a response strategy.

The legal requirements and regulations in the modern business environment are becoming increasingly complex. In particular, innovative industries, including IT and startups, require professional legal advice to keep pace with technological advancements and changes in the global market. Law firm Veat has established itself as a leader in the corporate advisory sector, proving its value in this environment.

Law firm Veat provides a wide range of legal services, including corporate law, investment, M&A, and intellectual property protection, to various clients ranging from startups to global corporations. It has a strength in providing optimized legal support tailored to each company’s growth stage and industry characteristics through specialized advice for the IT and startup sectors.

Furthermore, Law firm Veat provides regular legal advisory services to small-to-medium enterprises so that they can effectively respond to rapidly changing legal environments, helping them identify legal risks in advance and operate their businesses safely.

Through this expertise and effort, Law firm Veat has established itself as a trusted legal partner in various fields.

Within the startup ecosystem, we support the growth of countless companies, from early-stage startups to unicorn companies, and, based on our accumulated experience, we design the future together and establish a stable legal foundation.

If you require regular legal subscription services or corporate legal advisory services, please contact Law firm Veat.

Thank you.

Law firm Veat