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Lee calls out IKEA Korea over alleged anti-labor practices
IKEA Korea President and Chief Sustainability Officer Isabel Puig, center, speaks during a press conference in Seoul, April 20. Courtesy of IKEA Korea
By Ko Dong-hwan
President Lee Jae Myung said Friday that the government will thoroughly investigate allegations that IKEA Korea demoted an employee and pressured the worker to resign after returning from parental leave, vowing strict action if the allegations are confirmed.
"If the allegations are found to be true after a thorough investigation, we will take stern measures in line with international standards," Lee wrote on X, formerly Twitter, as he shared a news report on the case.
Lee said some multinational companies regarded as exemplary employers abroad had drawn criticism for adopting opaque management and anti-labor practices only in Korea.
"That was during a time when the Korean government pursued anti-labor policies and was tainted by corruption," Lee wrote. "Now that Korea is becoming a model society with a government that leads by example, such outdated management practices cannot be tolerated."
He added that just as Korean companies should not engage in anti-labor practices overseas, foreign companies should not do so in Korea.
The report alleged that IKEA Korea demoted an executive returning from parental leave to a staff-level position and pressured the employee to resign.
According to the report, the Anyang branch of the Ministry of Employment and Labor has been investigating IKEA Korea CEO Isabel Puig since April for alleged violations of the Equal Employment Opportunity and Work-Family Balance Assistance Act.
In response, IKEA Korea said it could not comment on matters related to employee privacy, internal documents or individual personnel decisions.
"The relevant procedures are being carried out in accordance with legal requirements and our internal policies," the company said.
In response to the report, IKEA Korea said in a statement that the organizational restructuring was part of a global reorganization, not a measure limited to its Korean operations. The changes affected IKEA organizations worldwide, including Korea, and were based on organizational and job functions rather than targeting any specific individual.
The company added that it is fully cooperating with the Ministry of Employment and Labor's investigation and expects the probe to establish the objective facts of the case.