South Korean Court Upholds Dismissal of Senior Official Who Mined Crypto on Institute's Servers

A South Korean court has upheld the dismissal of a senior official at the Korea Food Research Institute who secretly installed GPU servers and used institute funds to mine approximately 71 million altcoins between February and September 2023. The operation also involved unauthorized use of the institute's budget for air-conditioning installation, network setup, and electrical work.

The former official was dismissed after an internal investigation revealed his covert activities. He claimed that the dismissal was a disciplinary action that had lost its validity under socially accepted standards, but the court rejected this argument, stating that the punishment was justified given the serious misuse of public resources.

The ruling highlights the strict liability public employees face when using institutional resources for personal benefit and underscores the importance of monitoring resource usage and enforcing disciplinary measures in public institutions. The decision also reflects the growing legal scrutiny of cryptocurrency-related activities, especially when they intersect with public trust and governance.