Paik's Coffee Franchise Terminates Store After Employee Drink Theft Case and Labor Violations
Creatrip Team
24 days ago
A Paik's Coffee (Baekdabang) franchise owner in Cheongju who sued a part-timer for allegedly drinking store beverages and accepted a 5.5 million won settlement has had the franchise agreement terminated. The franchisor, Theborn Korea, ordered the store to close by July 13 after a Ministry of Employment and Labor inspection found the owner had split the business into two sub-5-employee operations (business splitting) and failed to pay about 3 million won in wages. The owner initially accused the worker of stealing 3 leftover drinks (worth 12,800 won) and later claimed 350,000 won in alleged theft, receiving the settlement; the case surfaced online and the owner returned the money and withdrew the charge. Following labor investigations, Theborn Korea first imposed a one-month suspension and then decided contract termination, citing serious damage to the brand and harm to other franchisees. The franchisor said it will strengthen labor inspections, provide labor expert training, and set up a labor counseling center to protect both owners and employees and prevent similar incidents.
