Coupang, the South Korean e-commerce giant, is grappling with its most significant crisis to date, facing a barrage of accusations ranging from ethical lapses to a full-blown tax investigation. The company’s troubles extend to declining user numbers and even a looming joint hearing, creating a multifaceted challenge for leadership.
A search and seizure of Coupang’s Gangnam office initiated an investigation into alleged non-payment of severance and potential prosecution. Simultaneously, the National Tax Service is conducting a comprehensive tax audit of Coupang’s operations, extending to its U.S. headquarters. Adding to the pressure, a courier union has accused Kim Beom-seok, a key figure within the company, of concealing information related to a worker’s death by overwork.
Internal communications reveal a concerning pattern of behavior. During several meetings, Kim Beom-seok reportedly appeared unaware of critical situations unfolding within the Korean operations. An email sent to management allegedly instructed staff to “intentionally amplify profanity and conflict.” Furthermore, following the death of a subcontractor, Kim Beom-seok is said to have ordered a change in the contracting party. One employee recounted being reprimanded for using the name “Bom” in an email, referencing the novel *The Invisible Man*.
The fallout is already impacting Coupang’s bottom line. Payments on the platform have decreased by 4% over a two-week period, fueling concerns about user confidence—a phenomenon dubbed “Talpang.” American shareholders have also entered the fray, initiating a class action lawsuit against the company.
A representative of a local Coupang corporation abruptly resigned, with reports indicating Kim Beom-seok’s potential relocation to Taiwan. The possibility of extradition looms as a significant threat. Kim Beom-seok’s primary leverage appears to be the support of major U.S. shareholders. However, some observers suggest that neither Kim Beom-seok nor Yoo Seung-jun can rely on their home country for assistance in navigating this crisis.
Separately, Park Na-rae, a prominent figure, is facing a police investigation regarding allegations of abuse of power and illegal medical treatment. She has filed a countersuit against former managers, alleging embezzlement. A legal battle is intensifying, with former managers suggesting the embezzlement claims followed an attempt at blackmail. A 5 billion won mortgage is reportedly at the center of the dispute, with managers facing provisional seizure.
The National Health Insurance Corporation is investigating the plastic surgery practices of Park Na-rae’s “aunt” who allegedly provided injections. The identity of the celebrity connected to the “Aunt Injection” scandal remains a subject of intense speculation. Jeon Hyun-moo, also accused, has responded by disclosing his medical records, while concerns are growing about a potential “celebrity witch hunt” surrounding the case.
