Coupang to fully compensate sellers for losses from Incheon warehouse fire

Coupang Fulfillment Services (CFS) said Wednesday it will fully compensate sellers on its Rocket Growth logistics service for inventory losses caused by the fire at its Incheon Seoknam-dong warehouse.

The move is intended to ease the business concerns of sellers whose stored inventory was destroyed or whose operations were disrupted by the fire, and to help them resume normal operations as quickly as possible.

CFS also said it will fully compensate sellers for inventory stored in areas of the warehouse not reached by the fire. The decision is a preemptive measure to prevent secondary damage, including delays in retrieving remaining stock and contamination from smoke and dust.

Coupang Inc said it will proceed with compensation under its own responsibility even before the fire investigation and insurance settlement process are complete.

The company cited the time required to assess burned inventory and estimate losses through damage adjustment, as well as the burden sellers would face if required to prove their own losses.

Starting in mid-August, Coupang Inc plans to notify each seller individually of the total compensation amount, the scheduled payment date and the minimum procedures required, as soon as it finishes tallying each seller's inventory.

The company said it will draw on its internal systems to compile inventory data and will not require sellers to submit complex supporting documents such as invoices or packaging footage, keeping the process as straightforward as possible.

Coupang Inc also plans to operate a dedicated one-on-one counseling channel for Rocket Growth sellers to address their specific questions and concerns in a timely manner.

A Coupang Inc official said the company is "sincerely sorry to the sellers for the concern caused by this unexpected accident," adding that it will "take responsibility and do its utmost to ensure that our valued seller partners do not face business difficulties as a result of this incident, while also doing everything possible to manage the situation on the ground and support local residents."

Meanwhile, CFS coordinated with the Incheon Metropolitan Office of Education on Monday to deliver 13,500 masks for students and staff at eight elementary schools near the warehouse. The company is also sending nurses from its Coupang Care Center to two temporary evacuation shelters in Seohaegu to support the health of local residents. It plans to operate shuttle buses to hospitals for residents requiring medical care and will cover transportation and medical expenses.