"The victim is a business owner, not a worker under the Labor Standards Act"
Ministry of Employment and Labor closes case, stating the Act does not apply
The controversy over the "drinking interview" at Theborn Korea, operated by CEO Baek Jongwon, has been concluded as not constituting workplace harassment. The reason is that the alleged victim does not qualify as a worker under the Labor Standards Act, so the relevant law cannot be applied.
According to the Ministry of Employment and Labor on May 30, the Cheonan Branch of the Ministry recently closed the workplace harassment case involving an executive, identified as A, at Theborn Korea without taking any action. The Ministry explained, "The parties involved applied to become shop owners during Theborn Korea's project to revitalize Yesan Market," and added, "Since they actually operated stores as individual business owners, they do not qualify as workers under the Labor Standards Act."
Under current law, "workplace harassment" refers to acts in which an employer or employee uses their position or relationship at work to inflict physical or psychological suffering or worsen the working environment for another employee, beyond what is considered reasonable. However, if the victim is not recognized as a worker, they are not eligible for protection.
This controversy arose when allegations surfaced that A had called a female applicant to a drinking gathering under the pretext of an interview during the recruitment process for shop owners at Yesan Permanent Market. The female applicant, identified as B, claimed that after having a formal interview and awaiting the results, she was contacted by A, who told her, "Think of this as a second interview," and she attended the drinking gathering as a result.
At the gathering, A reportedly showed a video featuring himself on Baek Jongwon's YouTube channel and made remarks that appeared to flaunt his influence. B also claimed that A made inappropriate comments such as, "Do you not have a boyfriend right now? You shouldn't have a boyfriend." Additionally, there were allegations that A attempted physical contact with B during a subsequent drinking gathering with the final selected shop owners.
After the controversy emerged, Theborn Korea stated, "The employee in question was immediately removed from duty. We view this matter with utmost seriousness," and added, "We will conduct a thorough investigation through an external agency to determine whether any illegal acts occurred and will take strict action." It is reported that A has since resigned from Theborn Korea.
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