Ministry of Employment: "Naver Caught for Workplace Harassment and Wage Arrears... Referral to Prosecutors and Fines" (Comprehensive)

Executive's continuous verbal abuse and intentional work exclusion of deceased employee
Company's 'Workplace Harassment Reporting Channel' not functioning
8.67 billion KRW wage arrears uncovered... "Prosecutor referral and fine imposed"
Government: "Active labor supervision until workplace harassment is eradicated"

[Sejong=Asia Economy Reporter Moon Chaeseok] The government announced that the claim of 'workplace harassment' occurring within Naver (NAVER) was confirmed to be true following a special labor inspection. Numerous violations of labor laws were also uncovered, including unpaid wages amounting to approximately 8.67 billion KRW.

On the 27th, the Ministry of Employment and Labor released the results of the special inspection on Naver. Previously, starting from the 9th of last month, the ministry began the special labor inspection after an employee, Mr. A, left a note expressing workplace stress and harassment and subsequently took an extreme action.

Workplace Harassment Confirmed Including Verbal Abuse by Executive

The claim that Executive B verbally abused Mr. A was confirmed to be true. The Ministry of Employment and Labor explained, "Mr. A was continuously subjected to verbal abuse and insulting behavior by his direct superior (Executive B), was deliberately excluded from decision-making processes, and suffered from excessive work pressure. Such actions are judged to constitute 'workplace harassment' prohibited under the Labor Standards Act."

Under the Labor Standards Act, employers must take immediate measures to verify facts upon recognizing workplace harassment, but Naver failed to do so. Since multiple employees, including Mr. A, directly raised issues about workplace harassment by Executive B, it is presumed that the employer was aware of the situation. The ministry stated, "In Naver's case, despite prior knowledge of workplace harassment involving the deceased worker, the employer did not conduct an investigation to verify the facts, thus failing to fulfill the 'employer's duty to act.'"

Internal 'Workplace Harassment' Reporting Channel Not Functioning

The ministry revealed that Naver's 'workplace harassment reporting channel' was not functioning properly. Naver dismissed clear cases of workplace harassment such as insulting behavior by superiors, excessive workload, and forced work during holidays as 'unrecognized.' After inadequate investigations, they concluded these did not constitute workplace harassment.

In a survey of Naver employees, many reported experiencing workplace harassment. Among 1,982 employees excluding executives, more than half (52.7%) responded that they had experienced workplace harassment at least once in the past six months. Among those who experienced harassment, 44.1% said they mostly endured it alone, while only 6.9% reported it to their superiors or company counseling departments.

The ministry stated, "We will separately guide employees on how to report verbal abuse, assault, and workplace sexual harassment revealed in this survey, and if additional specific reports are received after the special inspection, we plan to conduct separate investigations."

Unpaid Wages Also Caught... Nonpayment of Overtime, Night, and Holiday Work Allowances

Naver was also caught for 'unpaid wages,' a key focus of the labor inspection. It was found that over the past three years, Naver failed to properly pay approximately 8.67 billion KRW in overtime, night, and holiday work allowances to current and former employees.

In the past three years, 12 pregnant female workers were made to work overtime. Other violations included exceeding limits on overtime work, failure to provide written terms of employment to fixed-term workers, lack of workplace sexual harassment prevention education, and omissions in wage ledger entries, all violating labor laws.

Ministry of Employment and Labor: "Referral to Prosecution and Imposition of Fines"

The ministry announced that all cases of workplace harassment and unpaid wages violations at Naver will be referred to the prosecution and fines will be imposed. The ministry aims to eradicate inappropriate labor cultures, including long working hours, not only at Naver but across the IT industry.

Naver will be actively guided to develop and submit improvement plans for organizational culture and measures to prevent recurrence of workplace harassment. The ministry plans to support IT companies, including Naver, in complying with working hours by utilizing flexible work systems such as flexible, selective, and discretionary labor systems in R&D fields. Additionally, joint meetings with key IT companies will be held by related ministries to encourage improvements in corporate culture.

Kim Minseok, Director of Labor Policy at the Ministry of Employment and Labor, emphasized, "Although Naver is a leading IT company in Korea and a preferred employer among many young people, the special inspection revealed numerous areas needing improvement related to workplace harassment. We hope that both management and labor will actively cooperate to create a more rational and horizontal organizational culture that employees desire and meet public expectations."

Director Kim added, "To eradicate workplace harassment, active commitment from management and government efforts are essential. We will strengthen active guidance, investigations, and labor inspections to ensure workplace harassment is eliminated."