The Labor Ministry says Paris Baguette, South Korea's largest bakery chain, has been cutting corners on labor costs by illegally using employees hired by its subcontractors.

The ministry concluded on Thursday that five-thousand-378 bakers and baristas working at three-thousand-396 Paris Baguette franchise-based stores across the country are working under the direct orders of the company, despite being brought on by subcontractors.

The ministry said it ordered Paris Baguette to directly hire all the bakers and baristas as employees or face judicial action or heavy penalties.