Amid claims from a member of the K-pop group NewJeans that she faced workplace harassment within the entertainment company HYBE, the Ministry of Employment and Labor in South Korea has stated that it is difficult to consider her an employee under the country’s labor laws.
On Wednesday, the Ministry of Employment and Labor announced that the Seoul Western District Labor Office had concluded an investigation into a complaint filed by NewJeans fans, alleging that member Hanni had been bullied at work. The office stated, “We have closed the case as it is difficult to consider her an employee under the Labor Standards Act.”
The key point is that Hanni does not qualify as a worker or employee under labor law. She is a sole proprietor who earned 5.2 billion won (approximately $3.7 million) in 2023, which excludes her from the typical employee category. The Western District Office, which investigated the matter, explained that “given the nature and content of the management contract Hanni signed, it is difficult to categorize her as a worker under the Labor Standards Act, as she does not provide labor for wages in a subordinate relationship.” They added that “the relationship is merely one where both parties fulfill their contractual obligations as equals, making it difficult to argue that the company exercised control or supervision over her.”
Additionally, the Seoul Western District Labor Office cited several factors in its conclusion, including “the absence of company rules, regulations, or systems typically applied to regular employees,” “the lack of set working hours or a designated workplace, and the inability to determine fixed commuting hours,” and “the shared financial responsibility for entertainment-related expenses between the company and Hanni.”
The office also referenced a Supreme Court ruling from September 2019, which classified the nature of exclusive contracts for entertainers as akin to civil law delegation contracts. This ruling stated that:
– The payments made are of a profit-sharing nature and do not represent compensation for labor itself.
– Both parties bear their own taxes and pay business income tax rather than income tax.
– They assume the risks associated with generating profits and potential losses from entertainment activities.
Meanwhile, in a YouTube live broadcast in September, Hanni claimed that while waiting in a hallway at HYBE’s headquarters, she greeted another entertainer and their manager. Still, the manager responded by saying, “Ignore her.” Following this, NewJeans fans raised concerns about alleged mistreatment within. They filed a complaint with the Ministry of Employment and Labor, demanding that the truth behind the allegations be investigated. Hanni also appeared as a reference witness during a National Assembly audit.