[비즈한국] Global furniture retailer IKEA Korea is embroiled in allegations that it took retaliatory personnel actions against an employee returning from parental leave. With President Lee Jae-myung personally calling for a thorough investigation, the controversy surrounding IKEA, long known for its family-friendly management, appears to be widening.
President Lee Jae-myung speaks out on the IKEA parental leave controversy
It has been reported that the Anyang Branch of the Ministry of Employment and Labor is currently investigating IKEA Korea CEO Isabel Pucci for potential violations of the Equal Employment Opportunity and Work-Family Balance Assistance Act. The investigation follows a formal complaint filed by an IKEA Korea employee, identified as 'A', who claims to have suffered unfavorable personnel treatment upon returning from parental leave.
Employee A claims that while they were told before their leave that they would be able to return to their original position, they were effectively demoted from a team leader role to a team member position after returning, with the company citing organizational consolidation as the reason. A further claims that when they protested this reassignment, the company pressured them to resign and even hinted at the possibility of being transferred to a field-level position if they refused to comply.
This controversy has intensified following direct remarks from President Lee Jae-myung. On the 10th, the President shared a news report on the IKEA Korea parental leave issue on his X (formerly Twitter) account, stating, "There have been cases where global companies, which are considered exemplary in other countries, have drawn criticism for anti-labor and opaque management practices only when operating in our country."
He emphasized, "Just as our companies should not engage in anti-labor and unreasonable behavior overseas, foreign companies should not do so within our borders either. We will conduct a thorough investigation, and if the facts are confirmed, we will take strict measures in accordance with international standards."
IKEA Korea has categorically denied the allegations. The company stated, "The recent organizational restructuring was part of a global-level operational change. No disadvantageous measures have been taken against the employee mentioned in the reports. The employee in question remains with the company in the same position and job role, and their employment relationship remains unchanged."
The company added, "Procedural investigations by relevant authorities are currently underway, and IKEA Korea is cooperating fully. We will diligently provide all necessary data and explanations to ensure that objective facts are confirmed during the investigation process."
IKEA’s long-touted family-friendly management: Will the brand image take a hit?
As the controversy over the returning employee's personnel treatment gains traction, labor-management tensions are also on the rise. Using this incident as a catalyst, the labor union has begun raising broader issues regarding restructuring, job reassignments, and working conditions.
The IKEA Korea branch of the Mart Industry Workers Union issued a statement on the 10th, claiming, "'Human-centric management' and 'Swedish-style welfare' are IKEA’s signature slogans. However, the recent incident proves how illusory those slogans are. IKEA is pushing ahead with all-out workforce reductions and restructuring."
The union views this controversy not as an isolated incident involving one specific employee, but as an extension of problems stemming from the company's recent restructuring and personnel operations. The union claims, "Lately, it has become rampant within IKEA to force employees who have served the company for years and shown dedication to accept voluntary resignation packages, regardless of their position or career." They allege that those who refuse are subjected to unilateral job reassignments without consent and pressure to accept wage cuts.
IKEA Korea has been experiencing declining profitability recently. For the 2025 fiscal year (September 2024–August 2025), IKEA Korea's revenue was 639.3 billion won, a 2.2% increase from the previous year, but operating profit fell by 41.6% to 10.9 billion won. Net profit for the same period also dropped by 40% to 3.3 billion won.
IKEA has been touted as a model for ESG management, emphasizing gender equality, diversity, and family-friendly working environments as core values. The company has frequently been highlighted as a leading global firm in social responsibility, including eco-friendly policies, gender balance among employees, work-life balance, and the creation of an inclusive organizational culture. In the '2025 World’s Top Companies for Women' list released by Forbes, IKEA ranked 5th out of 400 global companies.
Observers suggest that as this controversy spreads, it could place a significant burden on the family-friendly and human rights-oriented image IKEA has built over the years. Some point out that if the labor-management conflict regarding personnel treatment for parental leave returnees and restructuring becomes prolonged, it could negatively impact the credibility of the ESG management practices IKEA has championed.
IKEA Korea responded by saying, "We respect the relevant laws and regulations of the Republic of Korea and ensure that all co-workers can safely exercise their legally guaranteed rights, including pregnancy, childbirth, and parental leave. We will continue to strive to create an environment where all members, regardless of their family situation, are treated with respect and can work fairly."