"President Lee: 'Outdated management practices by foreign firms will not be tolerated in Korea'", 10 July 2026

President Lee Jae-myung said of IKEA Korea — which is suspected of demoting an employee who returned from parental leave and pressuring them into resignation — that "such outdated management practices, if they occur, cannot be tolerated." …

(…)

The President also said, "just as our own companies must not engage in anti-labour, unreasonable conduct overseas, foreign companies must not do so within Korea either," adding, "if a thorough investigation confirms this to be true, we will take strict action in line with international standards."

According to reports, allegations have been raised that the global furniture company IKEA Korea demoted an employee who had returned from parental leave and pressured them to resign, and the Ministry of Employment and Labour is now investigating. The ministry's Anyang branch office has been investigating IKEA Korea CEO Isabel Puchi since April on suspicion of violating the Act on Equal Employment and Support for Work-Family Reconciliation.