Coupang, affiliates found to have committed 205 workplace safety violations

The government said Thursday it will take criminal enforcement action over safety violations at Coupang and its affiliates, after inspections uncovered suspected cover-ups of workplace accidents and inadequate safeguards at logistics facilities.

The Ministry of Employment and Labor found 205 violations of the Occupational Safety and Health Act across 105 logistics centers and delivery camps. It said 61 violations would be subject to criminal enforcement action, while the remaining 144 would draw administrative fines totaling about 1.96 billion won ($1.48 million).

Separate labor inspections also found that Coupang had failed to include key provisions of its performance improvement program (PIP) in its employment rules, in violation of the Labor Standards Act. The ministry said it will issue a corrective order and impose a fine.

“Covering up workplace accidents or failing to report them not only prevents workers from receiving proper treatment and compensation, but also hinders efforts to determine their causes and identify and address hazards, making further accidents more likely,” Labor Minister Kim Young-hoon said.

“Coupang must use these inspection results as an opportunity to take thorough measures to prevent further legal violations. It must also take seriously the risks of overwork, night shifts and excessive workloads that can accompany fast delivery and more efficient logistics, and earn public trust by adopting management policies that respect workers’ lives and health,” he added.

The findings followed inspections of Coupang, a U.S.-based e-commerce giant, as well as Coupang Fulfillment Services, its warehousing and packaging arm, and Coupang Logistics Services, its delivery arm. The fact-finding effort was launched early this year in response to allegations raised by liberal lawmakers and media reports.

Safety inspectors identified two cases of suspected concealment of workplace accidents and opened criminal investigations, the ministry said.

In one case, a worker was induced to withdraw an application for workers’ compensation medical benefits through measures including a settlement payment. In another, a worker withdrew a similar application following a meeting with management, while the required workplace accident report was not submitted, according to the ministry.

Inspectors also uncovered 25 cases of missing or late accident reports, which are expected to draw about 170 million won in fines. Employers must submit a report within one month when a workplace injury or illness requires at least three days off.

Other violations included failures to install conveyor safeguards, such as emergency stop devices and covers, and to implement measures to prevent workers from being struck by forklifts. Inspectors also found failures to provide mandatory special health examinations for night workers, as well as deficiencies in the installation and management of rest facilities.

After a labor inspection in 2024, the ministry recommended measures to protect workers’ health. Coupang affiliates implemented some, including separating vehicle and pedestrian routes and automating sorting, but others remained unfulfilled, according to the ministry. Officials said they will again press the companies to improve sorting and loading conditions and revise delivery arrangements to reduce workloads and work hours.

The ministry’s labor inspections found no cases of workers being dismissed solely for failing Coupang’s PIP. It will also recommend clearer standards for selecting participants, setting targets and allowing employees to challenge decisions.

Cover-up allegations were raised over the death of a worker surnamed Jang at Coupang Fulfillment Services’ Daegu center in October 2020. Investigators found that Coupang’s then-chief executive told employees to “make sure there is no record that he worked hard.”

Company staff analyzed surveillance footage to log the time the worker spent drinking water, using the bathroom, waiting and talking, while the firm disputed reports linking his death to overwork. His death was subsequently recognized as work-related in February 2021.

The ministry will refer the case to prosecutors with a recommendation against indictment because the statute of limitations has expired. Officials also said it would be difficult to establish a criminal concealment offense, noting that the death had been reported and investigators had not confirmed interference with the compensation approval process.