BUCHEON, South Korea, May 29, 2020 — Coupang, a leading Korean e-commerce company, faced scrutiny after failing to promptly notify workers of COVID-19 cases at its Bucheon logistics center in 2020, a lapse that contributed to a significant outbreak and, ultimately, worker deaths. This incident has sparked debate about the company’s priorities and its responsibility to its workforce, particularly as it continues to emphasize the Korean market to investors.
A Pattern of Prioritizing Profit Over People?
Critics allege Coupang prioritized business growth over worker safety during the pandemic, a claim underscored by the company’s public statements and internal actions.
- In May 2020, 152 workers at Coupang’s Bucheon Logistics Center contracted COVID-19 after the company allegedly delayed informing employees of confirmed cases.
- Two employees who revealed the delayed notification faced contract non-renewal and initiated legal action.
- Despite workplace incidents, Chairman Kim Beom-seok consistently highlighted the company’s growth and the strength of the Korean market when addressing investors.
- The National Assembly’s Oversight and Defense Committee has reported Chairman Kim and two former representatives to the prosecution for failing to appear at a hearing.
The Coupang Bucheon Logistics Center became a focal point of the pandemic in 2020, with a total of 152 individuals testing positive for COVID-19. Reports indicate that Coupang allegedly continued to require workers to attend afternoon shifts without disclosing the infections, potentially exacerbating the spread of the virus. Two employees who brought this issue to light reportedly had their contracts terminated, leading to a legal dispute.
At the time, Chairman Kim Beom-seok focused on the company’s positive performance during the pandemic. “Last year, the number of orders surged due to the COVID-19 outbreak that began in Korea at the end of January. Despite the difficulties, we maintained a high on-time delivery rate,” Kim stated in May 2021.
Silence Amidst Tragedy
Following the outbreak at the Bucheon center, further incidents occurred at Coupang, including the death of a delivery worker and a fire at a logistics center. However, Chairman Kim reportedly remained silent on these issues publicly.
Instead, he consistently emphasized the importance of the Korean market when communicating with investors. “This quarter’s results show that the Korean market remains a market with very solid growth potential,” Kim said in April of this year. In August, he added, “Coupang’s FLC business is acting as an essential driving force in revitalizing the economy of underprivileged regions throughout Korea.”
Coupang has not issued a separate statement clarifying the intent behind Chairman Kim’s repeated emphasis on the Korean market.
What is Coupang’s responsibility to its workers in Korea, and how does that align with its messaging to investors? This question remains central to the ongoing debate surrounding the company’s practices.
The National Assembly’s Oversight and Defense Committee recently reported Chairman Kim, along with former representatives Park Dae-joon and Kang Han-seung, to the prosecution for failing to attend a hearing.
