The Labor Ministry has conducted a comprehensive inspection of Coupang and its affiliates, uncovering a total of 206 legal violations and imposing fines amounting to approximately 19.6 billion won ($19.6 million). The investigation also confirmed that the CEO instructed employees not to document overtime records following the death of a worker at a Coupang logistics center in 2020, although criminal liability appears unlikely.
On October 22, the Ministry of Employment and Labor announced the results of its oversight of Coupang, Coupang Fulfillment Services (CFS), and Coupang Logistics Services (CLS).
In the area of industrial safety, inspections conducted from March 16 at 105 locations, including logistics centers and delivery camps, identified 205 violations of the Industrial Safety and Health Act. Of these, 61 cases are being processed for legal action, while fines totaling approximately 19.6 billion won will be imposed on 144 cases. Coupang CFS accounted for the largest share of fines at about 12.9 billion won, followed by Coupang CLS at around 6.3 billion won and Coupang at approximately 300 million won. This amount exceeds the 1.79 billion won fine imposed during the special labor inspection of Arisell in 2024.
Notably, two new instances of concealing workplace accidents were confirmed during the inspection. In one case, a worker was persuaded to withdraw their application for industrial accident benefits through a settlement payment, while in another, a manager facilitated the withdrawal of a claim and failed to submit the industrial accident investigation report. The Labor Ministry has classified these incidents as criminal and has initiated investigations.
Additionally, 25 cases were identified where industrial accident investigation reports were either not submitted or submitted late. Violations of safety measures, including the failure to install emergency stop devices on conveyors and the lack of measures to prevent forklift collisions, were noted in 59 cases, which will also be investigated as potential crimes. Fines will be imposed for 119 cases related to the failure to conduct special health examinations for night workers and inadequate management of rest facilities.
Regarding the October 2020 death of a worker at Coupang Fulfillment's Daegu center, it was confirmed that inappropriate instructions were given by the CEO at the time. According to the Labor Ministry, the CEO directed via messenger to ensure that 'there is no record of him working hard.' Subsequently, Coupang officials analyzed CCTV footage to categorize the deceased's times for drinking water or using the restroom.
During the investigation into industrial accident compensation, it was found that the initial CCTV footage submitted by Coupang did not show the deceased, and a company representative provided inaccurate descriptions of the working environment. The worker was later recognized as having suffered a work-related injury due to night shifts and high work intensity in February 2021.
However, the Labor Ministry stated that it would be difficult to prosecute the actions at the time under the Industrial Safety and Health Act for concealing workplace accidents. The statute of limitations for such offenses is five years, which expired last October, although complaints were filed in December and January.
The legal criteria for establishing concealment of workplace accidents are also in question. The Labor Ministry explained that for such a charge to be valid, there must be active efforts to prevent the reporting of the accident. In this case, the occurrence of a serious accident had already been reported, and no actions obstructing the approval process for the accident were identified.
Oh Young-min, head of the Labor Ministry's Safety and Health Inspection Bureau, stated, 'While Coupang engaged in inappropriate conduct, it is not easy to classify it as concealment of workplace accidents under the Industrial Safety and Health Act.' He noted that although the statute of limitations has expired, the actions were deemed inappropriate.
The limitations of the investigation process were also revealed. The Labor Ministry reported difficulties in contacting some victims and securing testimonies due to confidentiality clauses in settlement agreements. Although a search warrant was requested to obtain relevant materials, it was denied by the court. The Labor Ministry has referred the case to prosecutors with a recommendation for non-prosecution and will continue to investigate additional allegations of concealment of workplace accidents that arose during the inquiry.
No major legal violations were confirmed regarding allegations of illegal dispatch, blacklisting, or programs for dismissing low performers. While it was confirmed that Coupang had previously created a list of some former employees for use in hiring processes, there was no evidence that this information was shared externally to hinder employment at other companies, thus not constituting a violation of labor standards.
Although it was confirmed that a Performance Improvement Program (PIP) was operated with selected participants, no cases of termination through this program were found. However, the failure to include the program's details in the employment regulations was deemed a violation, resulting in a fine of 700,000 won. Coupang and CLS also denied allegations of illegal dispatch, citing that they directed and commanded their respective workers and that delivery items were categorized separately.
The Labor Ministry plans to reiterate guidance on improving working conditions for sorting and loading tasks and enhancing the three-shift delivery system, which were recommended during the 2024 inspection but have yet to be implemented. Additionally, the Ministry anticipates similar issues may arise at other logistics centers and plans to include oversight of logistics centers in next year's inspection agenda.
Labor Minister Kim Young-hoon emphasized, 'Coupang must seriously recognize the issues of overwork, night labor, and excessive work intensity that can accompany rapid delivery and logistics efficiency.' He urged the company to establish management policies that respect the lives and health of workers.
In response, Coupang stated, 'We will actively address the areas needing improvement as identified by the Labor Ministry's inspection results and will thoroughly clarify necessary matters.' The company added, 'We will continue to invest and strive to create a safe and healthy working environment.' Furthermore, Coupang expressed condolences to the bereaved families involved in the matter, stating, 'However, we regret that the unilateral claims of a former executive, who was dismissed for misconduct and lost in litigation, were presented as if the inappropriate instructions were confirmed as facts, despite not being substantiated in the related investigation.'
* This article has been translated by AI.
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