LG Electronics Australia is under scrutiny amid claims it’s benefiting from the use of South Korean interns who reportedly work up to 8 hours a days for as little as $1,000 a month—an amount that doesn’t even cover rent in Sydney.

Insiders, including both former and current LG executives, say these interns—many of whom speak little or no English—are not listed on the company’s payroll.

Instead, the modest allowance is allegedly paid through a third-party company, IMG Worldwide, whose head office is based in New York.

IMG claims that the company partners with Gloria Lee at IMG Global to deliver “work experience programs” for LG Electronics. “These programs empower individuals to learn from LG’s teams and contribute to the business,” the site reads.

Ironically, IMG also hosts several publications discussing employee wage inequality.

According to sources, the internship program is effectively a source of “cheap labour” for LG’s local operations. There’s no mention of expected working hours for interns on public-facing material, nor any indication that the interns are enrolled in accredited training courses that would meet Australia’s legal requirements for unpaid vocational placements.

LG Australia & New Zealand Managing Director Dan (Sang Moo) Lim.

Notably, there are no Australian interns working at LG’s local office. A former senior executive remarked, “The only Australian culture these interns get is a morning tea with a packet of Tim Tams.”

Interns, it’s claimed, have replaced long-serving senior executives who were dismissed due to their high salaries. These roles have either been filled with lower-paid staff or left vacant altogether.

The company is also facing broader allegations of cultural exclusion and workplace discrimination. Former Human Resources Director Amanda Jackson has filed Federal Court claims alleging bullying and harassment by LG Australia & New Zealand Managing Director Dan (Sang Moo) Lim. She also claims the company discriminates against Australian employees in favour of Koreans, fostering a workplace culture that prioritises Korean values and hinders Australian staff from fulfilling their roles.

One internal meeting, convened by Jackson to address an LG staff member issuing an unauthorised employment reference on company letterhead to assist with a visa application, was allegedly shut down by Lim.

Questions remain unanswered about the company’s current profit performance and the scope of its intern program. LG has yet to explain how these South Korean nationals survive on such low allowances in one of the world’s most expensive cities.

A current LG executive claimed that Samsung was also employing interns locally, but when contacted, a Samsung spokesperson denied this, stating, “No interns are employed by Samsung in Australia.”

Globally, LG promotes structured internship programs such as a 9-week summer placement and a 3-month paid internship designed to give students hands-on experience and meaningful work.

However, under Australia’s Fair Work Act 2009, whether an intern is paid depends on whether the position qualifies as a “vocational placement” or if it constitutes an employment relationship. If interns are doing productive work outside of formal education or training, they must be paid minimum wage and be entitled to standard workplace protections.

At the time of publication, LG Electronics Australia’s Marketing Director Gemma Lemieux had not responded to multiple questions regarding the intern program, workplace discrimination claims, or the company’s current operational structure.