Lee calls out IKEA Korea over alleged anti-labor practices

President Lee Jae Myung said Friday that the government will 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 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 "Now that Korea is becoming a model society with a government that leads by example, such outdated management practices cannot be tolerated."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.

Following the president's remarks, IKEA Korea issued a second statement Friday, a day after saying the organizational restructuring was part of a global reorganization, rather than a measure targeting only its Korean operations. The company said it is taking the concerns seriously.

IKEA Korea said it complies with domestic laws and regulations and operates its programs to ensure employees can use legally protected rights, including those related to pregnancy, childbirth and parental leave, with confidence. According to the company, 118 employees out of its approximately 2,000 workers took parental leave over the past year, and 110 of them have since returned to work.

It added that procedures by relevant authorities are currently underway and that it will provide the necessary materials and explanations to help verify the facts objectively.

Also on Friday, IKEA Korea's labor union issued a statement urging the company to suspend the restructuring and withdraw what it called forced job transfers, saying the measures were being pursued in the name of improving management efficiency.