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The Fair Economy

2026.11.03. 06:47

Coupang inspection finds 206 violations; workplace accident cover-up and illegal dispatch cleared

Fines of 1.96 billion won, 61 cases referred for prosecution

On March 11, 2021 (local time), Kim Beom-seok, chairman of Coupang's board, poses in front of the New York Stock Exchange (NYSE) ahead of the company's listing. /Coupang
On March 11, 2021 (local time), Kim Beom-seok, chairman of Coupang's board, poses in front of the New York Stock Exchange (NYSE) ahead of the company's listing. /Coupang

2026.10.24. The Fair Economy — The Ministry of Employment and Labor announced the results of its targeted inspection of Coupang, Coupang Fulfillment Services, and Coupang Logistics Services, uncovering 206 violations of industrial safety and labor standards, referring 61 cases for prosecution, and imposing fines totaling 1.96 billion won (about $1.42 million). Allegations of concealing industrial accidents, illegal dispatch, and blacklisting were concluded as not subject to prosecution or not violations of the law.

The ministry announced the results on the 22nd, covering 105 logistics centers and delivery camps of Coupang affiliates, as well as the headquarters and seven delivery camps.

In the industrial safety category, the ministry found 205 violations of the Industrial Safety and Health Act (ISHL) and referred 61 cases for criminal investigation, imposing fines in 144 cases. The average fine per inspected site was about 18 million won, bringing the total to roughly 1.96 billion won (about $1.37 million).

Investigations have begun in two cases where evidence showed that facts of workplace accidents were concealed. In one instance, workers were made to withdraw their claims for accident treatment after receiving settlement payments; in another, managers persuaded workers to withdraw their claims through interviews, and the required industrial accident investigation forms were not submitted.

For 25 cases of failing to submit or delaying the submission of industrial accident investigation reports, which are required within one month when an injury or illness necessitates more than three days of leave, fines of approximately 170 million won (about $123,000) will be imposed.

Plans are in place to investigate 59 cases after recognizing them as crimes, including failures to implement protective measures for conveyors and to prevent contact with forklifts. Fines totaling about 1.78 billion won (about $1.3 million) are expected for 119 other violations, such as 10 cases of failing to conduct special health examinations for night work and six cases of improper installation or management of rest facilities.

In the labor standards category, the ministry confirmed that Coupang selected and ran a Performance Improvement Program (PIP) but found no violation of the law, as no employee was found to have been dismissed through the program. However, since the PIP applies to all employees but was not included in the company's work rules as required, the ministry cited a violation of Article 93 of the Labor Standards Act and ordered corrective action along with a fine.

The ministry confirmed that a blacklist had been compiled, but determined it did not constitute interference with employment under Article 40 of the Labor Standards Act, since there was no evidence it had been shared outside the company. Allegations of illegal dispatch were also dismissed, as the ministry concluded, based on Supreme Court criteria, that Coupang could not be seen as having been substantially incorporated into Coupang Logistics Services' operations.

In the investigation into the accusation case of the late Jang Mo-ssi, a worker at Coupang Fulfillment Services' Daegu center who died in October 2020, inappropriate instructions by the then CEO of Coupang were confirmed, but the statute of limitations had expired, so the case will be sent to the prosecution with a recommendation for no indictment. Additional allegations of concealing industrial accidents raised during the investigation will continue to be examined.

The ministry also found cases in which causes of accidents were described too broadly in industrial accident report forms, or in which measures to prevent recurrence were inadequately specified, and instructed the company to make improvements. The ministry plans to draw up guidelines for completing industrial accident report forms and introduce a system for notifying the reasons behind workers' compensation approvals. Coupang said it would actively act on the areas for improvement and respond fully to the findings.

Coupang has faced a string of sanctions, including a fine of 624.68 billion won (about $437 million) imposed in July by the Personal Information Protection Commission over a massive leak of personal data. That same July, a major fire broke out at Coupang's No. 32 logistics center in Seohae-gu, Incheon, and was not brought under initial control for 61 hours. During the firefighting effort, the center's "mezzanine structure" was identified as a factor that made it difficult to extinguish the blaze, reigniting controversy over the company's lax safety management.

This is not the first time Coupang has faced industrial safety problems. One firefighter died in the line of duty during a June 2021 fire at the Deokpyeong logistics center in Icheon, Gyeonggi Province, and Coupang disclosed losses amounting to hundreds of billions of won. During the investigation into the July fire in Incheon, police also referred to the Deokpyeong center fire case, and it emerged that disaster-control room staff had turned off the fire alarm six times, resulting in charges for violating fire-safety laws.

As of July, 33 of Coupang's 51 large logistics centers (64.7%) were operated with mezzanine structures. These structures are known to pack flammable goods and conveyor belts closely together, making fires harder to extinguish and raising the risk of collapse. Experts have pointed out the need to improve sprinkler installation standards.

Regarding suspicions that Coupang created a blacklist, the ministry said it confirmed that lists of some former employees were created and used as reference material for rehiring. However, it ruled that this did not violate Article 40 of the Labor Standards Act because there was no evidence the lists were shared externally with the purpose of hindering employment at other companies.

© 2026 The Fair Economy. All rights reserved.

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