Labor Ministry Finds 205 Violations at 105 Coupang Logistics Sites... Launches Probe into Industrial Accident Cover-Up

The Ministry of Employment and Labor inspected logistics centers and delivery camps operated by Coupang affiliates and found 205 violations of the Occupational Safety and Health Act. It also found evidence that workers had been induced to withdraw applications for workers' compensation medical care through compensation payments or meetings with managers, and has launched an investigation. During an investigation into allegations that Coupang concealed the industrial accident in which a worker died at a Coupang logistics center in 2020, officials also uncovered inappropriate instructions from Coupang's CEO at the time.

On October 22, the ministry announced the results of its inspections of industrial safety and labor standards at Coupang affiliates, including Coupang, Coupang Fulfillment Services, and Coupang Logistics Services. In the industrial safety inspection, it examined 105 logistics centers and delivery camps and found 205 violations. Of those, 61 cases will be referred for criminal proceedings, while fines totaling more than 1.96 billion won will be imposed for the remaining 144.

Coupang Inc. posted its largest operating loss since going public in 2021, amid fallout from a fine over a personal data breach. The company, which is listed on the New York Stock Exchange, disclosed on the 4th (local time) that it swung to an operating loss of 835 billion won ($556 million) in the second quarter of this year, compared with a profit in the same period last year. Photo taken outside Coupang in Gwangjin-gu, Seoul, on the 5th. Yonhap News.

Major violations included inadequate safety measures for conveyors, failure to prevent contact between forklifts and workers, failure to provide special health examinations for night work and other conditions, and poor management of rest facilities. In particular, investigators plan to pursue criminal investigations into 59 cases, including failures to install emergency stop devices and covers on conveyors, and failures to prevent contact between workers and vehicles in vehicle work zones.

Investigators also found cases in which industrial accidents were concealed or not reported. The ministry found cases in which workers were induced to withdraw workers' compensation applications in exchange for compensation payments, as well as cases in which workers were persuaded to withdraw their applications during meetings with managers and industrial accident investigation forms were not submitted. It has launched investigations into these cases after identifying them as suspected crimes. The ministry plans to impose fines totaling about 170 million won for 25 cases in which industrial accident investigation forms were not submitted or were submitted late, despite injuries or illnesses requiring at least three days away from work.

The ministry also pointed out that recommendations to improve working conditions to protect workers' health had not been properly implemented. Coupang affiliates had followed some recommendations, including separating vehicle and worker routes, introducing automated item-sorting equipment, and running psychological counseling programs. However, further action was needed to improve conditions for small-item sorting and loading, replace Fresh Bags, and improve the current three-round delivery system. The ministry plans to urge the company to promptly develop measures to reduce work intensity and working hours.

In the labor standards inspection, the ministry examined the operation of the Performance Improvement Program (PIP), the compilation of lists of former employees, and allegations of illegal worker dispatch. It confirmed that Coupang had selected employees for and operated the PIP, but found no cases in which workers were dismissed through the program. However, the company had not specified or reported key details of the PIP, including eligibility criteria, training content, and duration, in its rules of employment, making it subject to corrective orders and fines. The ministry plans to instruct the company to clarify the criteria for selecting participants, their goals, and the program's duration, and to establish a step-by-step appeals process.

The ministry also confirmed that lists of former employees had been used as reference materials in hiring. However, it found no evidence that the lists had been shared with other companies to obstruct former employees from finding work, and therefore did not find a violation of the Labor Standards Act. The allegations of illegal worker dispatch were also not substantiated, given that Coupang and Coupang Logistics Services each directed their own workers on route assignments and work allocation, and that the products delivered by each company were also separated.

Coupang, Coupang Eats and Coupang Play apps experienced access errors starting around midnight on the 9th, causing inconvenience for users. The Coupang headquarters in Gwangjin-gu, Seoul, on the same day. Yonhap News Agency.

Former CEO instructed staff, 'Do not leave a record that he worked hard'... Probe into alleged concealment of industrial accident

An investigation into allegations that Coupang concealed the industrial accident involving the late Mr. Jang, a worker who died at the Daegu Center operated by Coupang Fulfillment in October 2020, uncovered inappropriate instructions from Coupang's CEO at the time. According to the ministry, the then-CEO sent a message via messenger about the deceased to the effect of, "Make sure no record is left showing that he worked hard." Investigators found that Coupang officials and others analyzed closed-circuit television (CCTV) footage and categorized and compiled the time the deceased spent drinking water, using the restroom, waiting, and talking.

Investigators also confirmed that after media outlets reported the worker's death as an overwork-related death, Coupang posted a rebuttal on its newsroom website stating that the work was not particularly demanding. During an investigation by the Korea Workers' Compensation and Welfare Service in connection with the family's application for survivor benefits, Coupang initially submitted CCTV footage that did not show the deceased, then later submitted additional footage in which the deceased could be seen. It also emerged that an official gave an account of the working conditions that differed from what was shown in the CCTV footage.

However, the ministry determined that criminal liability could not be pursued, taking into account factors including the expiration of the statute of limitations, and plans to refer the case to prosecutors with a recommendation not to indict. It will continue investigating additional allegations of concealing industrial accidents that emerged during the probe. Employment and Labor Minister Kim Young-hoon said that concealing or failing to report industrial accidents prevents workers from receiving treatment and compensation, and makes it difficult to analyze the causes of accidents and address risk factors. He urged Coupang to prevent a recurrence and establish management policies that respect workers' lives and health.

This content was produced with the assistance of AI translation services.