“We will not eat blood-soaked bread.” Incited by the death of a young female employee at a factory of Paris Baguette this October, the national outrage towards SPC Group, a South Korean food company with prominent subsidiaries such as Paris Baguette, Baskin Robbins Korea, Samlip, and Dunkin Donuts Korea, tested how efficacious the coalesced force of consumer action may be in impacting the behaviors of corporations. The 23-year-old perished in tragically avertible circumstances; her death, caused by a flyaway piece of clothing being caught in a sauce mixer, could have been easily prevented if the factory had abided by safety regulations. Revelations that SPC had sent a pile of Paris Baguette bread to the worker’s funeral for condolences further animated public indignation, with consumers vowing to cease consumption of all related products until they see significant progress.

SPC harnesses all but a monopoly in the South Korean bakery market. A 2022 report by the Korea Agro-Fisheries and Food Trade Corporation confirms that SPC subsidiaries contributed a combined 83.4 percent of the nation’s annual sales of bakery manufacturers, with Paris Baguette alone contributing nearly 40 percent. Such ubiquity had paradoxically triggered widespread anger at the corporation’s actions, with consumers making online compilations of SPC subsidiaries to avoid and spreading a list of alternative corporations to consume instead. The SPC incident encapsulates a pivotal piece of the fallacies of South Korea’s relationship with labor, consumption, and business, encompassing the most piercing controversies of the generation.

The Shortfall of Legal Labor Protection

The foremost cause of death of the late worker was due to accumulated fatigue, as reported by her anonymous colleague in an interview with the British Broadcasting Corporation (BBC). “The sandwich line in which the worker was operating in was notorious for taxing working conditions, with workers alternating between day and night shifts every two weeks,” said the colleague. The factory additionally failed to abide by safety regulations that require two workers are always present at the scene of machinery operation. “If another worker had been there without being forced to finish leftover work, the late worker would’ve been saved,” they lamented.

The biggest legal liability of the corporation is the absence of automatic safety devices in the sauce mixer which the worker fell into, which violates the Occupational Safety and Health Act and enables SPC to potentially face persecution by the Serious Accidents Punishment Act. The immediate actions of both the Ministry of Employment and Labor (MOEL) and SPC, however, did not accordingly address the graveness of the situation. The MOEL allowed the operation of all other machinery with safety devices within the factory, and SPC group continued to produce commodities immediately after the incident without vacating the area or allowing temporary leave for traumatized colleagues.

Such lukewarm attitudes towards worker welfare and obedience to safety regulations may highlight how corporations have exploited legal blind spots for financial incentives. “The lack of proper execution of labor laws makes it possible that laws and reality are alienated,” commented Professor Lee Byoung-Hoon (Chung-Ang University, Department of Sociology), “South Korean law showcases a big discrepancy between what is written in laws and what happens in actuality.” Beyond inefficiencies in execution, moreover, South Korea’s current labor laws fail to offer structural protection to multitudes of workers, particularly those who work in non-traditional environments. “Workers who work in facilities in five or less, foreign workers, and freelancers are not protected by either the Labor Standards Act nor the Serious Accidents Punishment Act, ” said Professor Lee.

Persisting Relevance

The repercussions of the SPC boycotts have showcased unpredicted vigor in inflicting economic damage on subsidiary companies. As of November, the coalition of Paris Baguette franchisees reported that their cumulative sales have dropped by more than 20 percent. Sales of ‘Pokémon Bread,’ a product of Samlip, have taken a critical hit when compared to its fervent popularity upon release. “Consumers used to line up in stores at opening hours and ask all day if the bread was available. They’re all gone now,” said an anonymous insider in an interview with Kyunghyang Shinmun. The industry is cautiously eyeing the progression of the boycotts, as December is the month when bakery-related sales — SPC’s forte — is at their annual peak.

SPC may reference Namyang Dairy Products, a similar South Korean food company that faced widespread consumer backlash for maltreatment of workers. Though the initial boycotts commenced in 2013, Namyang’s failure to expeditiously respond to consumer demands has indefinitely prolonged the boycott; the company has operated on a straight deficit for 11 quarters straight. “It may be inferred that SPC has looked at the precedent of Namyang to learn that it is wise to quickly respond to consumer anger,” said Professor Lee.

SPC has accordingly reflected consumers’ sentiment in public relations. The company has vowed to invest 100 billion Korean Won (KRW) for advanced safety in business administration, establishing an independent internal committee dedicated to the cause. In relation to labor, the corporation reached a compromise with its union under requisites of improved adherence to regulations, marking a precedent in the history of the company. Additionally, SPC privately contacted the bereaved family and provided adequate compensation and condolences, formally bringing an end to the case.

Lesson Earned

Even when the SPC incident fades out of immediate public relevance, the status quo of labor laws must not shift out of public attention. Consumers, as one of the main stakeholders in capitalism, must remember that their power holds the utmost import regarding companies’ decision-making. “Consumers may utilize their purchasing power to sway decisions of companies by choosing to support companies that value labor laws and refrain from buying from companies that do not,” said Professor Lee. Though it is easy to feel powerless in struggles involving big corporations, it must be reminded that consumers have the right to utilize their purchasing power to support those that align with their preferences.

On the national scale, there must be continuous, heightened national attention on the status of labor workers, as the surveillance of citizens best levy pressure on lawmakers to better rectify labor laws. New labor regulations must include in their scope of protection those who exist in the blind spots of current labor laws and expand their executive power to better control individual corporations.

Though the full impacts of the SPC tragedy and the social movement initiated by it cannot be entirely assessed in this period, it can be inferred that SPC has showcased a willingness to stay receptive towards consumer demands, opening ways for positive development. Increased national attentiveness towards labor laws and holding malfeasant corporations accountable, moreover, proves to be the fundamental significance of the incident. Whenever citizens walk into a convenience store, a bakery, or other plainly reachable locations with SPC products on full display, it is now ingrained that one may utilize their capital wisely to instigate the social change they desire to see.