**Coupang Executives Called as Witnesses, ‘Unusual’**
**Environment and Labor Committee Chairman: Considering Additional Hearings and Legal Actions**
**Analysis: Setting an Example Before the Expansion of 7-Day Delivery**
On the 21st, the political sector in Korea is considering an additional parliamentary hearing concerning the overwork deaths of delivery drivers, targeting Kim Beom-seok, the chairman of Coupang Inc, who did not attend the initial hearing. The industry views this as pressure on Coupang to propose improvements for the working conditions of its delivery drivers, as the company sparked the 7-day delivery practice.
The National Assembly’s Environment and Labor Committee is holding a hearing titled “Hearing to Improve Working Conditions for Coupang Delivery Workers Including Night Labor” to review the current work conditions of Coupang delivery drivers, identify issues, and check responses from both the government and Coupang.
Previously, Kim Beom-seok, Coupang’s CEO Kang Han-sung, Coupang CLS CEO Hong Yong-jun, Coupang CFS CEO Jung Jong-chul, and Good Logistics CEO Son Min-soo were all called as witnesses. However, Kim and Son submitted reasons for their non-attendance to the National Assembly last week, citing Kim’s schedule to attend Donald Trump’s inauguration and Son’s personal reasons. Good Logistics is a delivery agency contracted by Coupang CLS.
It is unusual for four Coupang executives to be summoned as witnesses to a parliamentary committee hearing. Unlike general participants, witnesses are obligated to attend under the National Assembly Act. Failure to attend allows the committee to review the reasons and potentially take legal actions.
Despite the legitimacy of attending Trump’s inauguration, both ruling and opposition parties are insisting on a separate hearing for Kim Beom-seok. Ahn Ho-young, Environment and Labor Committee Chair, stated that they would discuss with fellow committee members whether to hold additional hearings or take legal steps against Kim. Kim Hyung-dong, a People Power Party member, emphasized the importance of Kim’s attendance and suggested summoning him again if he cannot attend.
The industry perceives the political focus on Coupang as an exemplary case amid the controversy surrounding the spread of ‘7-day delivery’ initiated by its ‘Rocket Delivery’ service. It is anticipated that if Coupang adjusts its nighttime delivery model or supports health check-ups in response to the hearings, other companies might follow suit.
An industry official commented, “If the government starts to regulate night work due to it being problematic, it could disrupt 7-day or early-morning deliveries. However, the government also cannot fully regulate or ignore the situation due to potential consumer backlash.” Another official mentioned, “It’s too late to halt early morning deliveries. We are considering measures like enhancing health check-ups or implementing mandatory rest for night workers.”
Coupang has not yet initiated any additional measures after the Ministry of Employment and Labor announced its comprehensive labor supervision results on Coupang CLS on the 14th. However, as CEO Hong is expected to attend the hearing in person, he may discuss direction for improvements.
This labor supervision is the first conducted concerning 24-hour delivery operations. The Ministry has determined that Coupang’s delivery personnel, called “Quick Flexers,” are not employees under the Labor Standards Act. In the industrial safety and health vision inspections conducted at 82 locations including Coupang CLS’s main office, sub-hubs, delivery camps, and agency offices, 41 locations were found violating industrial safety and health regulations.
At three of Coupang CLS’s subcontractors, employment contracts were not established, and four Coupang CLS subcontractors and two CJ Logistics centers were found to have reported 360 daily workers as business income earners. The Ministry of Employment and Labor has requested Coupang CLS to propose measures for protecting the health of workers and delivery drivers and improving their work environment.