Coupang faces 61 criminal referrals, W1.96b in fines as labor ministry finds 206 violations

The Ministry of Employment and Labor inspected 105 logistics centers and delivery camps operated by Coupang Inc. affiliates and found 205 violations of the Occupational Safety and Health Act. Of those, 61 cases will be referred for criminal prosecution and 144 will result in fines totaling 1.96 billion won ($1.48 million). Adding one violation in the labor standards category brings the total to 206 cases.

The ministry announced the findings Thursday, releasing the results of a planned inspection of Coupang Inc., Coupang Fulfillment Services and Coupang Logistics, along with the outcome of a separate investigation into the death of the late Jang Deok-jun, who died in October 2020.

During the inspection, authorities identified two suspected cases of industrial accident concealment and launched criminal investigations into both. In one case, a settlement payment was used to persuade a worker to withdraw a workers' compensation claim; in the other, a manager conducted an interview that led to a claim withdrawal, and the required industrial accident report was never filed. The ministry did not disclose which worksites were involved.

Safety violations were also widespread. Some 59 cases — including failures to install conveyor guards and forklift contact-prevention measures — will be referred for criminal prosecution. Fines of about 170 million won ($128,000) will be imposed for 25 cases of late or missing industrial accident report submissions, while about 1.78 billion won in fines will cover 119 other violations, including 10 cases of failing to conduct special health examinations and six cases of inadequate rest facilities.

The ministry also found that three recommendations issued following a 2024 inspection of Coupang Logistics had not been implemented. It said it would again direct the company to improve its triple-delivery-run system, upgrade working conditions for sorting and loading operations, and replace its fresh-bag packaging.

The investigation into Jang's death confirmed that the then-chief executive of Coupang gave inappropriate instructions related to allegations of industrial accident concealment. The ministry said it obtained relevant documents directly and secured statements from those involved. Kim Beom-seok, who was chief executive at the time, was found to have sent a message instructing staff to "make sure no record remains showing that he worked hard."

Criminal liability cannot be pursued, however. The statute of limitations for industrial accident concealment is five years, and it expired in October 2025 based on the date of Jang's death. The complaints were filed in December 2025 and January 2026. The ministry plans to send the case to prosecutors with a recommendation not to indict.

Oh Young-min, director general of the ministry's occupational safety and health inspection bureau, said applying the concealment offense under the Occupational Safety and Health Act would be difficult even setting aside the statute of limitations. The offense requires both a failure to report the incident and an active effort to prevent outside disclosure. In Jang's case, the ministry said a serious accident report was filed and no obstruction of the workers' compensation approval process was confirmed.

The ministry said it had confirmed the allegations raised by the media were true but that prosecuting them as concealment was not legally possible. Coupang disputed the characterization, saying the claims came from "a former executive who was dismissed for misconduct and lost in court." The company said it was "regrettable that instructions described as inappropriate were presented as confirmed fact, even though they were not established as such in the relevant investigation."

On labor standards, the ministry determined that no employees had been dismissed through the performance improvement program, or PIP, and found no violation on that count.

However, Coupang will be fined 700,000 won ($528) for failing to include key PIP provisions in its work rules, in violation of Article 93 of the Labor Standards Act. The ministry confirmed that a list of departing employees — referred to internally as a "deliberation consideration list" — was used as a reference in hiring decisions, but found no violation of the prohibition on interference with employment under Article 30 of the act, as the list was not shared externally to block workers from finding jobs elsewhere.

The ministry also investigated allegations that Coupang exercised effective command and control over delivery workers employed by Coupang Logistics, constituting an illegal dispatch arrangement. It concluded, however, that no illegal dispatch had occurred, citing the fact that each company separately assigns routes and work duties to its own employees and that the products handled by each are distinct.

The ministry said the presence of non-disclosure clauses in settlement agreements, combined with difficulty reaching many of the affected workers, made it hard to confirm concealment through inspection alone. It said it had applied for a search and seizure warrant to obtain the agreements but that the court rejected the application. Officials apologized for the seven-month delay between the start of the safety inspection and Thursday's announcement, saying the time was needed to review complex legal issues.

Employment and Labor Minister Kim Young-hoon said concealing or failing to report industrial accidents "not only blocks appropriate treatment and compensation but also cuts off the process of analyzing the causes of accidents and identifying and correcting hazards, raising the likelihood of similar accidents recurring." He said the ministry would take thorough action to prevent the numerous violations uncovered in this inspection from happening again.

Coupang said it "will actively take measures on matters requiring improvement in accordance with the ministry's labor inspection findings" and that it "will faithfully provide explanations on necessary issues."

Meanwhile, the ministry plans to include logistics centers broadly in next year's inspection schedule and will work toward establishing guidelines for completing industrial accident investigation forms and introducing a system to notify workers of the reasons behind workers' compensation approval decisions by 2027.