Fresh concerns have emerged over the use of low-paid interns by South Korean companies, including LG Electronics, whose parent company LG Group was recently caught attempting to use “illegal” labour at a US battery plant.

An investigation by ChannelNews has uncovered that third-party organisations are being used to mask payments to individuals employed as “interns” at LG Electronics Australia, where some are reportedly earning just $1,000 a month.

Outsourcing Payments

According to sources, LG has previously used Sydney-based Jobwire – with offices in Bella Vista and Coffs Harbour – to facilitate payments to South Korean nationals working at the company’s Australian headquarters.

Documents also show how South Korean government-backed programs help funnel cheap labour into subsidiaries of firms like LG Electronics, as well as into health care companies. These schemes operate “off the books” in countries including Australia.

At the centre of the practice is the Human Resources Development Service of Korea (HRDS), a state body under the Ministry of Employment and Labor. Its WorldJob+ website advertises overseas placements at companies including LG subsidiaries, often under “internship” programs that bypass local employment protections.

Allegations of Exploitation

Sources allege South Korean students are flown into Australia and paid stipends as low as $1,000 a month – well below Australia’s minimum wage – while working full-time hours.

A former LG Electronics Australia executive told ChannelNews:

“At any one time we had up to eight interns working full-time. We didn’t have to pay them anything beyond the $1,000 allowance, yet they were doing revenue-generating work.”

The Australian program is facilitated by International Mentor Groupe (IMG), which describes the scheme as a legitimate university placement initiative. Senior Director Gloria Lee insists the stipend is “a legal allowance, not a wage.”

However, critics argue the system is exploitative. In South Korea, unpaid internships are tightly restricted and must include partial wage payments. Overseas, these safeguards are often ignored – creating what observers call a “double standard” that undermines young workers’ rights.

Internal Turmoil at LG Australia

The issue comes as LG Electronics Australia faces its own workplace controversy. Former HR Director Amanda Jackson is suing the company and Managing Director Dan (Sang Moo) Lim, alleging harassment, bullying, and discriminatory practices favouring Korean staff over Australian employees.

Managing Director Dan (Sang Moo) Lim, right centre seen entertaining low paid interns in Australia.

In her Federal Court statement of claim, Jackson alleges Lim failed to act when she raised concerns about misconduct by Air Conditioning Division head Eun Sung Cha, who allegedly issued unauthorised reference letters on LG letterhead to support  visa applications to the Federal Department of Home Affairs.

Jackson says Lim blocked her from conducting a full investigation, telling her not to “make a big noise of it,” which she claims prevented her from fulfilling her HR responsibilities.

Wider Concerns in Australia

While LG insists its intern program is linked to university partnerships, the company has not disclosed which institutions it works with, nor explained how interns can be paid well below legal wage standards.

ChannelNews has also identified other Australian businesses advertising through the South Korean WorldJob platform – including Smile On Clinics, Spine Ortho Clinic, Spice Temple Melbourne, and Ello Group – with many postings requiring full-time duties despite some being labelled “unpaid.”

Amanda Jackson the former Director Of Human Resources has taken action against LG Electronics Australia and <anaging DirectorDan Lim.

Labour experts warn the practice not only exploits South Korean students but also risks undercutting Australian workers and driving down local wage standards.

A senior LG insider in Seoul told ChannelNews:

“This is a government-backed system that looks the other way overseas. Korean youth are losing their labour rights, and Australian companies are gaining cheap labour at the expense of fairness.”

In a recent US raid, more than 300 South Korean nationals were detained, including 46 LG Energy Solution employees.

ChannelNews and 4Square Media emphasise there is currently no evidence that LG Electronics is operating illegally in Australia, or that Dan Lim is guilty of the allegations made against him in the Federal Court.