taking company supplies and embezzling are not just habits, they're theft and grounds for discipline. our top experts break down the legal boundaries and firing risks for even a $4 snack. avoid the risk of company equipment theft in the workplace.
when stealing company supplies is grounds for termination: a complete breakdown of legal risks
we've all been guilty of reaching for the coffee mix in the break room or the office supplies on our desk at some point in our careers. Taking company supplies home without permission, or "petty theft," is no longer just a workplace practice, but a serious legal risk that can lead to criminal penalties (theft, embezzlement) and serious disciplinary grounds under labor law.
even the most seemingly insignificant company items can be subject to legal penalties the moment they are taken without permission. this applies to all types of company property, from benefits to expensive office supplies.
table of contents
the "small stuff" trap: The legal implications of taking small company items without authorization
discipline beyond criminal penalties: the real risk of termination
worker rights and practical response strategies when suspected equipment theft occurs
readers' Questions and Answers (FAQ)
bottom line: before a debt of the heart becomes a debt of the law
1. the 'pocketbook' trap: A legal look at unauthorized removal of small company items
clearly define company property
even if your company provides snacks, coffee, stationery, and other items for your employees' benefit or to promote work efficiency, the company still owns these items. in principle, these assets must be used for "business purposes within the workplace." Therefore, unauthorized removal of these company supplies is considered an infringement of the company's ownership rights.
1-1. Why even a single snack is punishable: the requirements to commit theft
the Korean Penal Code stipulates that stealing another's property is punishable by imprisonment for up to 6 years or a fine of up to 10 million won. taking company equipment without permission can constitute theft. the key legal requirement here is the intentto steal.
intent to unlawfully take means the intent to use or dispose of another's property as if it were your own, to the exclusion of the rightful owner (the company). while the public may assume that a company has implied consent for a small amount of benefits, a court may disagree.
in a case where a security guard at a logistics company took snacks worth 1,000 won from a refrigerator and ate them, the court found him guilty and fined him 50,000 won. This example shows that even a 400-won chocolate pie can be punishable, and suggests that the law takes "taking something you know you are not authorized to dispose of " seriously, regardless of the amount of money involved. even an ordinary employee taking office supplies to take home (e.g., a ream of A4 paper, a set of quality ballpoint pens) is likely to be guilty of theft, as the intent to permanently deprive the company of its assets for personal gain (intent to misappropriate) is recognized.
1-2. Felony if you're a manager: the weight of "embezzlement in the course of business
if simply taking company equipment without authorization is a theft offense, the crime of embezzlementapplies if the same act is committed by a person who is responsible for managing the equipment in his or her job. embezzlement is when a person who has custody or control of another's property misappropriates it.
in particular, if a person who is in charge of managing (storing) company property misappropriates the property for personal use, the crime of business embezzlementis more severe than ordinary embezzlement (imprisonment for up to 5 years). business embezzlement is punishable by imprisonment for up to 10 years or a fine of up to 30 million won, and is almost twice as severe as ordinary embezzlement. This is because managers are more strongly required to fulfill their fiduciary duties to the company (breach of duty), so it is considered a grave betrayal of the company's order, not just stealing.
in the case of Mr. B, a manager of a real-life supermarket, who took out 730,000 won worth of goods 11 times over a period of about 8 months and adjusted the selling price arbitrarily, the court determined that this was embezzlement in the course of his duties.
comparison of penalties by type of liability
classificationgeneral theft (unauthorized removal of equipment)general embezzlement (failure to control equipment)business embezzlement (manager) legal basis article 329 of the Criminal Code article 355 of the Criminal Code article 356 of the Criminal Code maximum penalty imprisonment for up to 6 years or a fine of up to 10 million won imprisonment for up to 5 years or a fine of up to KRW 15 million imprisonment for up to 10 years or a fine of up to 30 million won core Requirements unauthorized possession of another's property custodian's personal use of another's property violation of professional duties and embezzlement
2. discipline Beyond Criminal Penalties: Real Risk of Termination
the dangers of stealing company property are not limited to criminal penalties. Even if you receive a deferred prosecution or acquittal in a criminal case, you can still be disciplined (suspended or fired) for violating the company's internal rules. theft in the workplace is a serious disciplinary offense for unauthorized use of company property and violation of corporate order.
2-1. A case where serious disciplinary action was justified for unauthorized removal of a small item of equipment
in order for a company to enforce disciplinary action, the employment rules or bylaws must contain a clause stating that 'unauthorized removal of company assets is punishable'. the justification for discipline is established by this explicit provision and the fact of the violation, and in particular, whether the severity of the discipline is not excessive is strictly examined by the Labor Commission.
repeated and cumulative behavior, even for low-value goods, is grounds for severe discipline. for example, a company's two-month suspension of an employee for repeatedly removing 100 pairs of low-value ($20,000 to $50,000) work gloves without authorization was deemed excessive by the Labor Commission, but was upheld as justifiedby the court.
this case shows that "loss of trust in job performance" and "repetitiveness" of theft of company supplies, regardless of the amount, are key reasons for termination. repeated acts, even small ones, are considered to undermine an employee's basic trust in the company's assets, which is a major negative reason for increasing the severity of discipline.
2-2. The dangers of "time theft" beyond physical assets
in the modern world, a company's assets are not limited to physical fixtures; the time that employees are paid, i.e., working hours, is alsoconsidered an intangible asset of the company. types of so-called "petty theft" include not only theft of office supplies, but also "time theft" - unnecessarily being away from the office or engaging in personal business during working hours - which is both dereliction of duty and a breach of contract.
repeated and intentional time theft, in particular, can lead to serious disciplinary grounds. court cases illustrate the dangers.
excessive personal smartphone use: This refusal to hire a probationary worker who frequently used his smartphone during working hours was upheld.
avoiding customer calls: A telephone agent's frequent dialing and hanging up on his personal cell phone from his work phone (averaging hundreds of calls per month) to avoid customer calls was deemed justified as grounds for dismissal.
frequent unauthorized departures: A salesperson's going home every day during business hours and staying for more than three hours was also deemed justified for termination.
this suggests that, like theft of physical company equipment, unauthorized use of an intangible asset, "time," is difficult to avoid severe discipline if the behavior is repeated and intentional.
3. worker rights and practical response strategies in the event of suspected equipment theft
when a company pursues disciplinary action against an employee for theft or unauthorized removal of equipment, the employee must be able to fully exercise his or her defense. this is because the legitimacy of the disciplinary action depends not only on the reason for discipline, the amount of discipline, but also on the legitimacy of the procedure.
3-1. Securing the legitimacy of the disciplinary process (employee's right of defense)
the most important legal issue when an employee disputes unfair discipline is whether the company followed the established procedures.
obligation to ensure opportunity to be heard: If the company's employment rules stipulate that the company must give the employee an opportunity to be heard (explain) in the event of discipline, it is very likely that the disciplinary action taken by the company without following this procedure will be invalid due to procedural defects. when you receive a disciplinary notice, you should check to see if you were given an opportunity to be heard.
notice of a DisciplinaryCommittee: In order to hold a disciplinary committee, the parties must generally be notified in writing at least three days before the meeting.
if the employee disagrees with the disciplinary decision, he or she may assert his or her rights through the company's internal appeals policy or by applying to the Labor Commission for relief from unfair discipline.
3-2. Factors Affecting Sentencing in Criminal Cases
if you face criminal penalties for theft of company equipment or embezzlement, regardless of the amount of damage, the court will consider a number of sentencing factors to determine your final sentence.
positive mitigating circumstances that may warrant leniency:
efforts to repair the harm (including restitution)
sincere remorse for the offense
no prior criminal history (first-time offender)
turning yourself in or blowing the whistle on internal misconduct
negative mitigating circumstances that may result in an enhanced sentence:
the offense was committed in a very poor manner
intentional concealment of proceeds of crime
you have a prior conviction for the same or a different offense
you are charged with multiple, repeat offenses
it's important to keep in mind that even small amounts of theft of company supplies can result in more than just a fine; if you have a history of theft, or if your theft is aggravated as a multiple offense, you may be recommended for jail time. Especially in the case of business embezzlement, even first-time offenders are often sentenced to jail time if the offense is deemed to be bad enough.
4. readers' FAQs for small businesses
Q1. Is it really punishable to take a few coffee mixes or an A4 sheet or two?
A. Legally, you may be guilty of "theft" - taking someone else's property. however, most companies will not tolerate or criminally penalize "small amounts of supplies" that are socially acceptable. The problem is when this is done repeatedly, for resale, or for bulk use, when the intent to illegally obtain becomes clear and can result in criminal penalties (theft) or severe disciplinary action (dismissal).
Q2. My company did not give me a chance to be heard in the disciplinary process. Is the discipline invalid?
A. If your company's employment rules, etc. specify that you will be given an opportunity to be heard in disciplinary proceedings, it is very likely that the disciplinary action without an opportunity to be heard will be invalid because it violates procedural due process. in order for a disciplinary action to be justified, the reason for the discipline, the remedy, and the procedure must all be justified.
Q3. Can I avoid embezzlement by claiming that I did not have "unlawful intent"?
A. Intent to defraud is a key element of embezzlement. if the defendant did not use the property for personal benefit, but disposed of it for the benefit of the owner (company), the intent to illegally benefit may not be recognized and the crime of embezzlement may not be established. However, if the defendant used the company's equipment for personal benefit or caused damage to the company, the intent to illegally benefit is generally recognized.
Q4. Can I be sentenced to prison if I am a first-time offender for theft of equipment?
A. First-time offenders for simple petty theft are usually given a fine or probation. However, there are cases where a first-time offender can be sentenced to imprisonment if the amount of damage is large, the method of the crime is poor, the requirements for aggravated punishment for multiple offenses are met, or the offense is deemed to be aggravated because the business embezzlement law applies.
5. bottom line: before a debt of the heart becomes a debt of the law
a single piece of company equipment that you take with the best of intentions can make or break your professional life - and your criminal record. in addition to the criminal liability of theft and embezzlement, stealing and unauthorized removal of company equipment carries a significant disciplinary risk of termination for violating workplace rules.
whether it's benefits or office supplies, company property should only be used "for business purposes." The law doesn't care about your petty habits or social conventions, and it strictly protects the company's ownership. the moment this boundary is crossed, your 'pilfering' becomes an irreversible offense.
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