Ikea Korea vows responsible response to parental leave demotion allegations as president warns of action

Ikea Korea, facing allegations that it penalized employees who returned from parental leave, reiterated Friday that it is taking the matter seriously.

In a statement released Friday, the company said "we are taking the recently raised allegations regarding parental leave and the resulting public concern very seriously," adding that it was sorry for the worry caused to customers who care about and support Ikea.

The company also said it "recognizes that it must comply with relevant Korean laws and regulations, and that legally guaranteed rights — including those related to pregnancy, childbirth and parental leave — must be respected without any disadvantage." It added that "a probe by the relevant authorities is currently underway, and we are cooperating fully by providing the necessary materials and explanations so that the objective facts can be confirmed."

The company pledged to "respond responsibly based on the results of the investigation," and said it would continue striving, as a people-centered company, to repay customers' trust and pursue its vision of providing a better lifestyle for more people.

Earlier, a media outlet reported that the Ministry of Employment and Labor was investigating Ikea Korea CEO Isabel Puig on charges of demoting employees who returned from parental leave and pressuring them to resign.

President Lee Jae-myung warned Friday that the government would "conduct a thorough investigation and, if the allegations are confirmed, take strict action in line with international standards." He added: "There have been cases where a global company once considered exemplary in other countries engaged in anti-labor and opaque management practices in particular in our country, drawing criticism. Just as Korean companies must not engage in anti-labor or unreasonable conduct abroad, foreign companies must not do so here either."

According to Ikea, 118 of its approximately 2,000 employees took parental leave over the past year, and 110 of them — or 93 percent — have since returned to work.

In a statement Thursday, Ikea Korea rebuffed the allegations, saying "no disadvantageous measures of any kind have been taken against the employee mentioned in the report," and that "the employee remains with the company in the same position and role, and the employment relationship is unchanged."

On the recent organizational restructuring, the company said it "was carried out with a focus on the organization and roles, not targeting any specific individual."

In a subsequent statement, the company said it was concerned that "unverified claims are being repeatedly reported as fact, causing unnecessary misunderstanding and harm to our employees and the company." It added that it "respects the laws and regulations of the Republic of Korea and ensures that all employees can use legally guaranteed rights — including those related to pregnancy, childbirth and parental leave — with peace of mind."