South Korea's labour ministry announced on Thursday, 22 October that it plans to levy a combined fine of 1.96 billion won ($1.5 million) on e-commerce giant Coupang and its subsidiaries following a sweeping inspection that uncovered 206 labour and workplace safety violations across its operations. The penalties target Coupang, its logistics arms — Coupang Fulfillment Services and Coupang Logistics Services — and several logistics centres.

Scale of Violations

Of the 206 violations identified, the ministry decided to pursue legal action for 61 of them. These include the absence of safety measures for conveyor belts and other serious infractions. The remaining violations were addressed through fines and include failures or delays in submitting industrial accident reports to local labour authorities, inadequate conduct of special health checkups for night shift workers, and improper management or installation of break facilities.

The Death That Triggered the Probe

The inspection was launched in the wake of the 2020 death of Jang Deok-jun, a Coupang logistics centre worker who died of acute myocardial infarction following an overnight shift. Allegations subsequently emerged that the company had sought to suppress evidence of the incident. A ministry investigation reportedly found that Coupang founder Kim Bom-suk had instructed a company official to avoid keeping records that reflected how hard Jang had worked prior to his death. However, the ministry said it could not pursue legal action on this specific matter, as the five-year statute of limitations had expired.

Separate FTC Action Over Subcontractor Dealings

In a separate regulatory development, South Korea's fair trade watchdog — the Fair Trade Commission (FTC) — approved voluntary corrective measures worth 3 billion won ($1.94 million) proposed by Coupang Corp. and its private-label affiliate, Coupang Private Label Brands (CPLB). The two companies sought a consent decree to resolve the case without further legal proceedings. According to the FTC, the companies had provided 314 subcontractors with contracts that omitted legally required information, and had lowered supply prices for 94 subcontractors through discount promotions not stipulated in their agreements — practices carried out since 2022.

What This Means for Coupang

The twin regulatory actions represent a significant escalation in scrutiny of Coupang, which is listed on the New York Stock Exchange and has positioned itself as South Korea's dominant e-commerce and logistics platform. Critics argue that the violations — spanning worker safety, accident reporting, and subcontractor dealings — point to systemic governance gaps rather than isolated incidents. The combined financial exposure from both cases exceeds $3.4 million, though analysts note the reputational risk may outweigh the monetary penalties. The outcome of the 61 cases referred for legal action, and any potential criminal proceedings, will be closely watched in the months ahead.