[2025 Audit] Coupang CFS CEO: "Severance Pay Criteria for Daily Workers to Be Restored to Original Policy"

Jung Jongchul Apologizes for Causing Confusion
Controversy Sparked by Introduction of "Reset Clause"
Circumstances Behind Prosecution's Non-Indictment Under Scrutiny

Coupang Fulfillment Service (CFS) has decided to revert to its original severance pay policy for daily workers, following recent controversy over the changes.

On October 15, Jung Jongchul, CEO of CFS, announced at the National Assembly audit of the Ministry of Employment and Labor by the Climate, Energy, Environment, and Employment Committee, "We have decided to restore the previous policy to improve the treatment of daily workers." He added, "Although our intention was to clarify the severance pay criteria, I apologize for causing misunderstanding and confusion. We will promptly proceed with the necessary procedures and take measures to ensure there is no harm."

In May 2023, CFS revised its employment rules to introduce the so-called "reset clause." Under this rule, even if an employee worked for more than one year, if there was even one week in which their average weekly working hours over four weeks fell below 15 hours, their continuous service period would be reset.

Jung Jongchul, CEO of Coupang Fulfillment Service (CFS), is responding to a lawmaker's question during the National Assembly audit of the Ministry of Employment and Labor on climate, energy, environment, and employment held on the 15th in Yeouido, Seoul. Photo by Yonhap News.

The Bucheon branch of the Ministry of Labor determined this to be unfair withholding of severance pay and referred the CFS human resources director to the prosecution in February. However, in April, the prosecution decided not to indict.

In relation to this, Democratic Party lawmaker Kim Jooyoung questioned prosecutor Moon Jiseok, who was in charge of the investigation at the time of the non-indictment, about the circumstances behind the decision during the audit. When Assemblyman Kim asked, "Did you agree with the prosecution's decision not to indict in April?" Moon, who appeared as a witness, replied, "I did not agree." He further stated, "Based on the evidence and Supreme Court precedents, I believed there was sufficient grounds for indictment." Nevertheless, the case was closed with no charges filed despite Moon's assessment. According to a petition submitted by Moon at the time, there were allegations that the leadership of the Bucheon branch of the Incheon District Prosecutors' Office ordered a non-indictment and omitted key evidence.

Additionally, during the audit, questions were raised about CFS's working conditions and industrial accidents.

CEO Jung explained, "We have invested more than 100 billion won in cooling, ventilation facilities, and automation equipment," and stated that the company plans to continue investing to improve working conditions. Regarding the employment restriction blacklist, he said, "We have abolished the Standard Operating Procedure (SOP)," and also promised to expand the hiring of regular employees.

Minister of Labor Kim Younghoon stated, "We will establish concrete measures such as strengthening unannounced inspections for workplaces with repeated industrial accidents, including Coupang."