Cheongju Paik's Coffee franchise to close after owner sued part-timer over 3 drinks

A Paik's Coffee franchise owner in Cheongju who drew widespread criticism for filing criminal charges against a part-time worker over three leftover drinks will close the store.

The Born Korea, which operates the Paik's Coffee brand, notified the franchisee of contract termination for violating the Franchise Business Act, industry sources said Tuesday. The store will remain open only through July 13.

The controversy erupted in March after online communities learned that the owner had filed an embezzlement complaint against a part-time employee who drank three remaining beverages worth 12,800 won ($8). The owner eventually withdrew the complaint as the backlash grew.

The store was nonetheless suspended from operations for one month in March. A subsequent audit by the Ministry of Employment and Labor found violations of the Labor Standards Act, leading to termination of the franchise agreement. The owner, identified only by the surname A, had split operations across a coffee shop and a dessert store — two separate workplaces — and failed to properly pay 49 part-time workers a combined 3 million won in wages.

"After reviewing the results of the Ministry of Employment and Labor's labor inspection and relevant laws, we determined that the franchisee's conduct had seriously damaged the reputation and credibility of the Paik's Coffee brand and constituted a significant obstacle to franchise operations, and we therefore notified them of the closure," a Paik's Coffee official said. "We will work to establish a labor management process to protect the rights of both franchise owners and their employees so that a similar situation does not arise again."