Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Bodyfriend faces bumpy road to IPO
Bodyfriend CEO Park Sang-hyun
By Park Jae-hyuk
IPO plan could be derailed by alleged worker abuse
By Park Jae-hyuk
Bodyfriend, Korea's largest massage chair maker, has been facing growing criticism for alleged worker abuse, which could adversely affect its plan to go public later this year, according to industry analysts, Wednesday.
Given a company's credibility and morality are regarded as the two most important factors to pass the preliminary approval for a planned initial public offering (IPO), Bodyfriend may struggle to qualify due to the company's tarnished reputation and public criticism of CEO Park Sang-hyun.
The analysts said the firm has been in the hot seat over allegations that it recently took retaliatory measures against whistleblowers.
The Seoul-based company reportedly disciplined 11 employees for “tarnishing” the image of the company.
Earlier this month, Park also sent an e-mail to all employees, which reads, “Those who distorted facts and leaked our precious internal documents to the press have caused damage to our brand image that has been built over the past 11 years.”
In the e-mail, the chief executive also said, “Several thoughtless employees have damaged our company by insulting diligent workers, belittling our products and even spreading false rumors that some employees have sexually harassed the others habitually.”
Bodyfriend's disciplinary action and the CEO's e-mail, have raised concerns that the company may have punished the employees who informed the press of the worker abuse earlier this year.
In June, Bodyfriend was reported to have forced its employees to sign an unfair contract regarding their participation in the company's wellness program conducted under its medical research and development center. Back then, some employees claimed that the management had banned overweight workers from using elevators and excessively paid attention to their health.
Bodyfriend has denied the relationship between the recent punishment and the previous reports, saying, “The employees subject to the disciplinary action were those who spoke ill of their colleagues, the company and its products on social media.”
However, it has failed to convince the public, who believe that the company is still cracking down on whistleblowers.
Civic groups also said Bodyfriend's behavior may prevent workers from revealing the company's misconduct.
“Whistleblowers are usually subordinate to bullies,” an official at the People's Solidarity for Participatory Democracy said. “If the company did not prioritize punishment of the bullies, it may have disciplined the whistleblowers, as most Korean companies do.”
The official added the chief executive's warning may also lead employees to refrain from whistle blowing.
In addition to the allegation, Bodyfriend has faced several other negative issues.
In particular, the company is reportedly under the scrutiny of the Korea Institute of Certified Public Accountants.
Although it plans to request the Korea Exchange for preliminary approval for its planned IPO as soon as the surveillance ends, the deadline is indefinite, so the schedule for approval is uncertain.