Coupang Units Face 1.96 Billion Won in Fines Over Workplace Violations

South Korea’s labor ministry plans to impose a combined 1.96 billion won, or about $1.5 million, in fines on e-commerce company Coupang and two of its logistics subsidiaries after an inspection uncovered 206 labor and workplace safety violations.

The inspection covered Coupang, Coupang Fulfillment Services, Coupang Logistics Services and the companies’ logistics centers. The ministry said it would pursue legal action over 61 of the violations and levy administrative fines for the remainder.

The findings include an absence of required safety measures around conveyor belts, according to the ministry. Inspectors also identified failures or delays in reporting industrial accidents to local labor authorities. Other violations cited by the government involved special health examinations for employees working night shifts and the management or installation of worker rest facilities.

The scale of the findings places renewed attention on working conditions in South Korea’s fast-growing e-commerce logistics sector, where overnight shifts, rapid parcel handling and automated equipment can create overlapping health and safety risks. The ministry’s response separates alleged breaches that may warrant prosecution from administrative violations subject to financial penalties.

The inspection followed allegations that Coupang had concealed industrial accidents after the 2020 death of logistics center worker Jang Deok-jun. Jang died of acute myocardial infarction after working an overnight shift.

A ministry investigation found that Coupang founder Kim Bom-suk had instructed a company official not to retain records indicating that Jang had worked hard. However, the ministry said it could not take legal action over that finding because the applicable five-year statute of limitations had expired.

The planned penalties therefore center on violations identified in the recent inspection rather than prosecution tied to the 2020 case. The ministry did not say in its announcement when the fines would be finalized or provide details on possible legal proceedings for each of the 61 cases.

Coupang has become one of South Korea’s most prominent online retailers, supported by a nationwide fulfillment and delivery network. The latest enforcement action highlights continuing regulatory scrutiny of whether that network’s speed and scale are matched by adequate protections for logistics workers. It also signals that reporting obligations, occupational health checks and basic safeguards around automated equipment remain central elements of government oversight.