[비즈한국] Global furniture retailer IKEA Korea is mired in allegations that it subjected an employee returning from parental leave to unfair personnel treatment. With President Lee Jae-myung personally stepping in to order a thorough investigation, the controversy surrounding IKEA, long known for its family-friendly management, appears to be spreading.
IKEA parental leave controversy even mentioned by President Lee Jae-myung
The Anyang branch of the Ministry of Employment and Labor is reportedly investigating IKEA Korea CEO Isabel Pucci for alleged violations of the Equal Employment Opportunity and Work-Family Balance Assistance Act. This follows a complaint filed by an IKEA Korea employee, identified as A, who claimed to have received disadvantageous personnel treatment upon returning from parental leave.
Employee A claims that although they were told before their return that they could resume their previous role, they were effectively demoted from a team leader position to a team member role after returning, with the company citing organizational restructuring as the reason. A further claims that when they protested the move, the company encouraged them to resign and mentioned the possibility of being reassigned to a field-based position if they did not comply.
The controversy escalated further after President Lee Jae-myung addressed it directly. On the 10th, President Lee shared a news report about the IKEA Korea parental leave controversy on his X (formerly Twitter) account, stating, "There have been instances where global companies, considered exemplary in other countries, have drawn criticism for anti-labor and opaque management practices only within our country."
"Just as our companies should not engage in anti-labor and irrational behavior overseas, foreign companies must not do so here either," he emphasized. "We will conduct a thorough investigation, and if the allegations are proven true, we will take strict measures in accordance with international standards."
IKEA Korea has completely denied the allegations. The company stated, "The recent organizational restructuring was part of global changes in organizational operations," and added, "No disadvantageous measures have been taken against the employee mentioned in the report. The employee is currently still employed by the company in the same position and role, and their employment relationship remains unchanged."
The company further explained, "Procedures by the relevant authorities are currently underway, and IKEA Korea is faithfully cooperating with the investigation. We will provide all necessary data and explanations to ensure that the objective facts can be verified during the process."
IKEA's emphasis on family-friendly management: Will it hit the company's image?
As the dispute over the personnel treatment of the returning employee gains momentum, labor-management tensions are also rising. Using this issue as a catalyst, the union has raised concerns regarding restructuring, job transfers, and working conditions.
The IKEA Korea branch of the Service & Distribution Workers' Union issued a statement on the 10th, claiming, "'Human-centered management' and 'Swedish-style welfare' are IKEA’s signature slogans. However, recent events demonstrate how illusory those slogans are," adding, "IKEA is pushing ahead with broad workforce reductions and restructuring."
The union views the current controversy over the returning employee not as an isolated incident, but as an extension of problems arising from the company's recent restructuring and personnel operations. The union claims that "there is an rampant trend within IKEA of forcing employees who have long served and dedicated themselves to the company to take resignation packages, regardless of their rank or career." They allege that if employees refuse, they face unilateral job transfers without consent and pressure to accept wage cuts.
In response, IKEA Korea countered, "All organizational operations and personnel decisions are carried out in accordance with domestic laws and internal procedures. The claims that we forced employees to resign or pressured them with non-consensual job transfers or wage cuts are not true."
IKEA Korea has been experiencing declining profitability. For the 2025 fiscal year (September 2024 to August 2025), IKEA Korea's revenue was 639.3 billion KRW, a 2.2% increase from the previous year, but operating profit fell by 41.6% to 10.9 billion KRW. Net profit for the same period also dropped by 40% to 3.3 billion KRW.
IKEA has been recognized as a model for ESG management, promoting gender equality, diversity, and family-friendly work environments as its core corporate values. The company has frequently been cited as a leading global firm in social responsibility, including environmental policies, achieving gender balance among staff, supporting work-life balance, and fostering an inclusive organizational culture. In the '2025 World's Top Companies for Women' list published by global economic media outlet Forbes, IKEA ranked 5th out of 400 companies worldwide.
Observers suggest that the spread of this controversy could burden the family-friendly and human rights-conscious image IKEA has built over the years. Some point out that if the labor-management conflict surrounding personnel issues for those returning from parental leave and restructuring continues, it could damage the credibility of the ESG management that IKEA has long emphasized.
IKEA Korea stated, "We respect the relevant laws and regulations of the Republic of Korea and ensure that all co-workers can safely use rights guaranteed by law, including pregnancy, childbirth, and parental leave," adding, "We will continue to strive to create an environment where all members are respected and can work fairly, regardless of their family situation."