According to latest reports, JWT AdVenture Co in South Korea, part of J. Walter Thompson, has confirmed that its managing director Junghwan Kim resigned in February in connection with an investigation by the Prosecutor's Office for ‘alleged embezzlement’.
The report by The Korea Times last week left the agency and name of the executive anonymous but J. Walter Thompson has since released a statement confirming his resignation and the suspension of the finance director. The article alleged that JWT AdVenture Co had a contract with “the nation's largest tobacco and ginseng product manufacturer, over allegations he created slush funds”.
J. Walter Thompson in a statement said, “On February 23, J. Walter Thompson Asia Pacific’s senior management team accepted the resignation of the managing director of JWT AdVenture Co., Ltd, in connection with an investigation by the Prosecutor’s Office. We have also suspended the finance director, pending the outcome of the investigation. We are cooperating fully with the Korean authorities on this matter. We have also appointed external auditors and are undergoing a thorough internal investigation as well. J. Walter Thompson Asia Pacific is committed to the highest ethical standards and expects all its employees to abide by these standards.”
Recently, J. Walter Thompson’s Chief Communications Officer Erin Johnson had filed a lawsuit against Gustavo Martinez, Global CEO, JWT, in the New York Federal Court for sexual harassment and racist slurs.