[Exclusive] 2345 Industrial Accidents Last Year... The Shadow of Coupang

Surge After COVID-19 Crisis
Unions Demand Guaranteed Break Times
Mobile Phone Ban Remains
Ministry of Employment Warns "Potential Constitutional Violation"

Coupang recorded its highest annual performance last year, but it was revealed that more than 2,300 industrial accidents occurred. This is about four times higher compared to 2019, before the COVID-19 pandemic. Critics point out that behind Coupang's rapid growth lies intense work demands and poor labor conditions.

According to the 'Status of Industrial Accident Applications and Approvals by Company' submitted by the Korea Workers' Compensation and Welfare Service to the office of Lee Eun-ju, a member of the National Assembly's Environment and Labor Committee from the Justice Party, Coupang had 1,566 applications (1,464 approved), Coupang Fulfillment Service had 521 applications (471 approved), and Coupang Eats Service had 459 applications (410 approved) last year. The total number of industrial accident applications for the three companies reached 2,546, with 2,345 approvals. By type, accidents overwhelmingly outnumbered diseases. Coupang reported 1,422 accidents and 42 diseases, Coupang Fulfillment Service had 456 accidents and 15 diseases, and Coupang Eats Service reported 410 accidents.

Since the COVID-19 outbreak, the volume of logistics has surged, causing a sharp increase in industrial accidents at Coupang. Approved industrial accidents at Coupang were 193 in 2018, 334 in 2019, 758 in 2020, and 1,957 in 2021. Coupang Fulfillment Service recorded 148 in 2018, 181 in 2019, 224 in 2020, and 297 in 2021. Coupang maintains that the ratio of industrial accident applications relative to the number of employees is lower compared to other companies. A Coupang representative explained, "We invested 750 billion KRW last year alone in technology and logistics infrastructure to improve employees' work efficiency and reduce work intensity."

The Coupang labor union cites lack of break time as a major cause of industrial accidents. Work shifts at Coupang logistics centers are divided into day, night, and late-night shifts, each lasting 9 hours. Of this, break time, including meal time, is only one hour. Min Byung-jo, head of the National Logistics Center Branch of the Public Transport Union, said, "The logistics center is so large that it takes more than 10 minutes just to get to the break room. There should be a guaranteed 20 minutes of rest every 2 hours." He added, "The company first wants to discuss the procedures and methods of negotiations and then talk about other issues, so negotiations are at a standstill." The union demands include ▲guaranteed break times ▲wage increases ▲measures for heating and cooling ▲protection of union rights ▲and sincere negotiations.

A labor union banner is hung in front of the Coupang headquarters in Songpa-gu, Seoul.
[Photo by Im Chunhan]

The ban on bringing mobile phones into Coupang logistics centers remains uncorrected. Last year, the National Human Rights Commission expressed an opinion urging Coupang to improve related guidelines. According to the decision document, even private companies must have legal grounds and reasonable reasons to restrict the constitutional basic right of freedom of communication. It also pointed out that banning mobile phones in the workplace solely based on assumptions that safety accidents and business secret leaks might increase is an excessive measure.

In particular, the ban on carrying mobile phones makes immediate response practically impossible in emergencies such as illness, fire, or isolation, given the nature of the logistics center environment. Temporary workers, unfamiliar with the logistics center layout, inevitably have reduced ability to respond in emergencies. Coupang claims that employees can contact the outside through emergency phones installed, but voices say it is difficult to achieve the same effect as carrying mobile phones. Kang Min-jung, secretary-general of the National Logistics Center Branch of the Public Transport Union, criticized, "At Coupang logistics centers, mobile phones must be placed in lockers and can only be taken out during meal times. Even if injured on site, evidence cannot be immediately collected."

Coupang maintains its position that the measure is to prevent safety accidents. A Coupang representative stated, "We prioritize employees' safety above all, so mobile phone use in the workspace is restricted," adding, "This aligns with policies of major domestic and international companies." However, currently, competitors such as SSG.com, Kurly, and Oasis allow mobile phone entry.

The government has acknowledged that Coupang's actions may violate the constitution but has not imposed sanctions or measures. A Ministry of Employment and Labor official explained, "Uniformly restricting mobile phone use may violate constitutional freedom of communication," but added, "There is currently no practical legal basis or means to take action."

Assembly member Lee said, "Coupang promised during the recent national audit to devise a plan for mobile phone use to prepare for disasters and emergencies. Worker safety is as important as work discipline and corporate secrets, so measures must be quickly devised." She emphasized, "We will request improvements from the Ministry of Employment and Labor and guarantee workers' basic rights through legislation."