South Korean President Lee Jae Myung has ordered a thorough government investigation into allegations involving IKEA Korea, including claims that an employee was demoted after returning from parental leave and later pressured to resign. Lee says that if the allegations are confirmed, the government will take strict measures consistent with international standards, and he argues that foreign companies operating in Korea should not adopt workplace practices that would not be acceptable for Korean firms abroad. Lee also criticizes multinational companies that are viewed as exemplary employers internationally but are accused of using opaque management or anti-labor approaches in specific markets.

According to reports, the case centers on a senior executive who reportedly moved to a staff-level position following parental leave and was later urged to resign. The investigation is being handled by South Korea’s Ministry of Employment and Labor, including attention to possible violations of laws related to equal employment opportunities and work-family balance protections. IKEA Korea denies targeting any individual employee and says related organizational changes stem from a global restructuring and apply across multiple entities, not a local effort aimed at one person. The company says it is cooperating with the probe.