South Korea President Orders Probe Into IKEA Korea Over Alleged Parental Leave Demotion

South Korean President Lee Jae Myung has ordered a detailed investigation into allegations that IKEA Korea demoted an employee after returning from parental leave and pressured the worker to resign.

Lee said the government would take strict action if the allegations were proven during the investigation.

Sharing a news report about the case on X, formerly Twitter, the president said any confirmed violations would invite measures in line with international standards.

The South Korean leader criticised multinational companies that maintain a positive reputation globally but allegedly adopt unfair labour practices in specific markets.

He said companies operating in Korea must follow transparent management practices and respect workers’ rights.

Lee stated that foreign companies should not engage in labour practices in South Korea that Korean companies would not be allowed to pursue overseas.

He added that outdated workplace practices could not be accepted as the country moves towards stronger labour standards.

The allegations involve IKEA Korea, where a senior executive returning from parental leave was reportedly moved to a staff-level position and later pressured to resign.

The case is being investigated by the Anyang branch of South Korea’s Ministry of Employment and Labor.

The labour ministry has reportedly been examining IKEA Korea CEO Isabel Puig since April over possible violations of the Equal Employment Opportunity and Work-Family Balance Assistance Act.

IKEA Korea has denied targeting any individual employee and said it could not comment on matters involving personal information, internal documents or specific personnel decisions.

In a statement, the company said the organisational changes were part of a global restructuring process and were not limited to its Korean operations.

According to IKEA Korea, the changes affected multiple IKEA entities worldwide and were based on organisational requirements and job functions rather than aimed at any particular employee.

The company also said it was cooperating fully with the labour ministry’s investigation and expected the probe to establish the facts objectively.

The controversy comes amid growing scrutiny in South Korea over workplace equality, parental leave rights and employment practices. Authorities have been strengthening enforcement of labour protections as the country seeks to encourage greater participation of parents in the workforce while preventing discrimination linked to family responsibilities.

The outcome of the investigation will determine whether IKEA Korea violated labour laws and whether further action will be taken against the company.