Popular bakery chain slapped with over 800 million won in fines for labor violations

By Kim Seong-seo Posted : February 13, 2026, 16:03 Updated : February 13, 2026, 16:03
Courtesy of LBM
Courtesy of London Bagel Museum
SEOUL, February 13 (AJP) - LBM, the operator of popular bakery chain London Bagel Museum, was slapped with a fine of 810 million Korean won (about US$580,000) over widespread labor law violations, the Ministry of Employment and Labor said on Friday.

The bakery was found to have committed multiple violations of labor laws and relevant regulations, including 564 million won in unpaid wages for overtime and night-time and holiday shifts, and was ordered to take corrective action.

Revelations emerged in July last year after a worker in their 20s in Incheon was found dead. The family sought compensation, alleging the worker faced heavy workloads of up to 80 hours a week while preparing to open the bakery's new store and handling operations.

The family later withdrew after reaching a settlement with London Bagel Museum, but the ministry conducted a three-month investigation from late October, raiding all branches and interviewing employees to check compliance with labor laws and identify any violations.

The investigation uncovered some 61 violations including workplace harassment, unpaid overtime, pay-related irregularities, workplace safety issues, restrictions on annual leave and rest time, and other breaches.

Under relevant regulations in South Korea, companies with more than 50 employees must hire a person to take care of workplace safety and also provide medical checkups, but the company failed to comply.

Other violations included humiliating practices such as demanding that employees write formal apologies for workplace mistakes and read them aloud to coworkers, as well as deducting pay for arriving late in the morning.

The ministry requested that the company submit a plan with corrective measures and vowed to oversee its implementation.

Labor Minister Kim Young-hoon said, "I feel a heavy sense of responsibility that the company's rapid growth came at the expense of long hours and unpaid labor by young workers."

He added that the ministry will expand inspections to ensure companies do not focus solely on growth while failing to protect workers' basic rights.

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