Paikdabang Owner Who Sued Part-Timer for "Three Drinks Embezzlement" Booked for Wage Theft and Splitting Business Operations

Ministry of Employment and Labor Conducts Special Inspection of Cheongju Businesses
Unpaid Wages of 3 Million Won Owed to 49 Workers Uncovered
Illegal Clauses in Employment Contracts Lead to Criminal Charges

The owner of the franchise cafe 'Paikdabang' in Cheongju, North Chungcheong Province, who sparked controversy after filing an embezzlement complaint against a cafe part-timer for allegedly taking three drinks, has been booked by the police. It was revealed that the owner split the business into separate entities to evade labor laws, withheld wages, and included illegal compensation clauses in employment contracts.

According to Yonhap News on June 8, the Ministry of Employment and Labor announced the results of a special two-month inspection of 33 cafe and restaurant franchise locations in Cheongju, where the incident occurred.

A row of domestic low-price coffee brand stores.

The owner, referred to as Mr. A, who triggered this inspection, was found to have registered two separate businesses for a coffee shop and a dessert store, operating them as if they were independent entities. Previously, in March, Mr. A filed an embezzlement complaint, claiming that a cafe part-timer had taken three leftover drinks worth 12,800 won. As controversy spread online, Mr. A later withdrew the complaint.

The Ministry of Employment and Labor identified approximately 3 million won in unpaid wages owed to 49 employees, including unpaid extra pay for overtime, night, and holiday work, which had not been provided under the pretense of operating businesses with fewer than five employees. Mr. A exploited the current Labor Standards Act, which exempts some provisions—such as extra pay for overtime, night, and holiday work—from applying to businesses with fewer than five employees, by treating what was essentially a single workplace as if it were two separate businesses.

A violation of the Labor Standards Act's prohibition on penalty clauses was also found. Mr. A's employment contracts required employees to compensate for estimated sales losses in the event of a contract breach and included a clause stating that only 90% of salary would be paid if an employee resigned within three months. As a result, the Ministry of Employment and Labor referred Mr. A for criminal investigation.

Following this incident, the ministry expanded its inspection to other cafe and restaurant franchises in the Cheongju area. The inspection found numerous cases of poor basic labor management, such as failure to prepare or retain employment contracts and wage statements, and non-compliance with break times. The ministry imposed fines and corrective orders for missing documentation and issued corrective orders for wage arrears and break time violations.

The Ministry of Employment and Labor stated that, prompted by this case, it has prepared and is implementing measures to protect the rights and interests of young part-time workers. In addition, in the event of similar incidents, the ministry will conduct comprehensive investigations rather than simply processing complaints.

Minister of Employment and Labor Kim Young-hoon emphasized, "We will continue to respond strictly to illegal acts that violate the legitimate rights and interests of young workers through inspections and enforcement," adding, "At the same time, we will strengthen education and public awareness activities to ensure that business owners do not unknowingly violate the law."

This content was produced with the assistance of AI translation services.