The Ministry of Employment and Labor said it found indications that Coupang sought to cover up the death from overwork of a worker surnamed Jang at one of its facilities. The company will escape criminal punishment, however, because the statute of limitations has expired. The ministry also concluded that allegations the company kept a so-called blacklist to block former employees from finding work, and that it illegally dispatched workers between affiliates, did not constitute violations of the law.
According to the results of the ministry's inspection of Coupang released on the 22nd, 205 violations of the Occupational Safety and Health Act were found at 105 sites, including fulfillment centers and delivery camps. The ministry referred 61 of those cases for criminal action and imposed fines totaling 1.96 billion won ($1.4 million) in the remaining 144 cases. It levied 170 million won in fines over 25 cases of failing to submit industrial accident investigation reports, and 1.79 billion won over 119 cases including failure to provide special health checkups for night workers. The ministry opened investigations into two suspected cover-up cases in which workers were induced to withdraw industrial accident claims through settlement payments.
In its investigation into the 2020 death of Jang, the ministry confirmed that management had ordered a cover-up. The chief executive at the time issued a series of instructions over the company's internal messenger, including to ensure that no record remained showing the worker had worked hard, and that the company was not paying based on performance. The company pieced together and analyzed the deceased worker's movements. The ministry established that such improper instructions had been given, but referred the case to the prosecution service with a recommendation against indictment, as Coupang had reported the occurrence of the industrial accident and the statute of limitations had run out.
Allegations that the company managed a list of former employees to block them from finding work also turned up no violation of the law. The ministry found no evidence that Coupang had leaked or shared with outside companies the employee list it referred to in hiring. Under the current Labor Standards Act, the offense of obstructing employment covers interference with employment at other companies, making it difficult to apply the charge, the ministry said. Allegations of illegal worker dispatch between Coupang and Coupang Logistics Services (CLS) were also not upheld. The ministry found that the two companies each directed the work of their own employees, meaning the workers were not effectively incorporated into the operations of the contracting firm. Allegations of unfair dismissal through a performance improvement program were also found not to violate the law.
A search and seizure of Coupang sought by Jang's family fell through after the court declined to issue a warrant. Labor Minister Kim Young-hoon said Coupang must take thorough measures, using this inspection as an opportunity, to ensure that its many violations of the law are not repeated. Coupang said it would take active steps on matters requiring improvement.