[Exclusive] Patriotic Company 'Shinsung Tongsang' Employees in Tears... Controversy Over Verbal Abuse and Forced Sales

Workplace Bullying Rampant 'Swearing Controversy'... Sinsung Tongsang "Fact Check"
Frequent Layoffs Even Before COVID-19 Dismissals... "Implemented Voluntary Resignation"

Sinsung Tongsang logo.

[Asia Economy Reporter Lee Seon-ae] Shinseong Tongsang, which operates the fashion brand Topten and has built an image as a "patriotic company" through "patriotic marketing" aligned with the Japanese boycott movement, continues to face controversies. Amid recent disputes over the notification of layoffs to dozens of employees due to the impact of the novel coronavirus disease (COVID-19), there have been ongoing reports of habitual dismissals, verbal abuse, sexual harassment, and forced product purchases.

According to multiple reports from current and former employees of Shinseong Tongsang on the 20th, Team Leader A, who is in charge of the fashion brand, was confirmed to have frequently used abusive language in KakaoTalk chat rooms. KakaoTalk screenshots submitted by current and former employees show expressions such as "byeongshin-gati" (idiot), "deungshin-iya" (fool), and "beldo eopda" (worthless) used by Mr. A towards employees. In addition to verbal abuse, there were demands to come to work on weekends and instructions not to use annual leave. Employees reportedly suffered severe stress from such verbal abuse. One informant claimed, "He used foul language in the chat room because sales were not coming in and forced weekend work," adding, "There was even a time when weekend work was forced, and the National Human Rights Commission took action."

CEO of Shinsung Tongsang. Homepage capture.

Similar content appears on the anonymous workplace app Blind. On Blind, there are posts stating that abusive language was used via KakaoTalk and weekend work was forced. In response, a comment mentioned that when a mass infection occurred centered on Shincheonji Church members in Daegu, store managers were only made to pretend to self-quarantine (by submitting annual leave plans) but were actually made to come to work normally.

A Shinseong Tongsang official stated, "We plan to internally verify the facts regarding Mr. A's workplace power abuse and take action," emphasizing, "When COVID-19 spread, we told employees in the Daegu area not to come to work. If they did not come, we had to pay leave benefits, but since it was only 70% of the monthly fixed salary, we only accepted annual leave submissions administratively and did not treat it as used annual leave," suggesting that the issue likely arose from misunderstandings with employees.

Shinseong Tongsang recently sparked controversy by notifying 55 employees of layoffs due to the impact of COVID-19. However, after media attention focused on Shinseong Tongsang, the scale was reduced. A company representative explained, "It is true that we requested voluntary resignation interviews due to the difficult situation caused by COVID-19, and 25 people negotiated on this matter," adding, "Among them, 7 were reassigned to affiliate companies and resumed work."

Shinsung Tongsang brand TopTen.

The problem is that layoffs were frequent even before COVID-19. There were also numerous reports that employees on parental leave were forced to take voluntary resignation. In October 2015, posts on Blind confirmed that Topten was reducing staff under the chairman's orders. User Ra* mentioned, "Three people out as of today," while Pa* wrote, "More layoffs on Friday. I was also let go," and Jeon* said, "I was one of those laid off today and can no longer join here. I was notified by the team leader at 9 a.m. and told to come up at 11 a.m., where I was asked to write a resignation letter. I packed my things after lunch and left." It was also confirmed that restructuring took place in April 2017.

A Shinseong Tongsang official stated, "We avoid layoffs," explaining, "We proceeded with voluntary resignations through agreements with the parties involved following proper procedures after consulting with employees," and added, "In the case of parental leave, some employees requested involuntary unemployment to receive unemployment benefits because they could not adapt to their duties upon return, and we processed this, but the company did not interfere at all."

There is also controversy over forced product purchases. On Blind, user Dol* wrote, "Forced to buy products three times a year; if you fail to meet the target, you have to buy with your own money, but many clothes are unsellable," and Yeon* replied, "That's right, it's really stressful." Regarding forced purchases, Shinseong Tongsang emphasized, "There used to be sales competition by brand, but currently, in-house sales are only online, and there is no forced purchase at all," adding, "While some departments may be ambitious, there is no company-wide forced purchase."

Fashion brands owned by Shinsung Tongsang. Homepage capture.

Shinseong Tongsang has also been embroiled in sexual harassment controversies. One informant claimed, "Executive Director B made sexual harassment remarks at a drinking party, mentioning a subordinate's boyfriend, and made discriminatory comments such as it being difficult to hire female employees of older age during new recruitment." Shinseong Tongsang responded, "There have been no employee reports regarding sexual harassment by Executive Director B; rather, he is known to be careful with his language, so such reports are surprising," suggesting that the recent controversies surrounding the company might involve slander.

Finally, regarding the many controversies, a Shinseong Tongsang official said, "We have never conducted unilateral layoffs but have done voluntary resignations," and requested, "Please view us in a positive light."