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🇰🇷 South Korea /Crime & Justice

Coupang Accused of Evading Responsibility for Unpaid Retirement Benefits

From Hankyoreh · (34m ago) Korean Critical tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • Coupang Fulfillment Services (CFS) is accused of evading legal responsibility for unpaid retirement benefits by offering settlements and obtaining "non-punishment" statements from affected workers.
  • The company allegedly paid 300,000 to 500,000 won to around 30 of the 40 affected workers after the first court hearing in exchange for statements that they do not wish Coupang to be punished and will not file civil or criminal lawsuits.
  • Labor groups criticize this practice as a way to circumvent legal accountability, particularly given that the non-punishment clause applies to offenses where the victim does not wish to pursue punishment.

Coupang Fulfillment Services (CFS) finds itself embroiled in controversy again, this time for allegedly using its financial leverage to sidestep legal repercussions for unpaid retirement benefits. The company is accused of offering settlements of several hundred thousand won to affected workers in exchange for statements that they do not wish Coupang to be punished. This tactic, critics argue, exploits a legal loophole related to offenses where the victim's non-punishment is a condition for prosecution.

Coupang Fulfillment Services (CFS) is confirmed to have given settlement money worth several hundred thousand won to workers who were not paid retirement benefits, and received 'non-punishment' statements.

— Article SummaryThis quote encapsulates the core accusation against Coupang.

Reports indicate that following the initial court hearing on May 6, CFS offered between 300,000 and 500,000 won to approximately 30 of the 40 workers who were allegedly denied their rightful retirement pay. In return, these workers were asked to sign documents stating they do not wish Coupang to face punishment and will refrain from filing any further civil or criminal lawsuits. This move appears to be a direct response to the court's inquiry about whether the company could obtain such agreements from the victims.

Coupang CFS offered settlement money in the range of 300,000 to 500,000 won to victims after the first public trial on the 6th of last month, in exchange for writing non-punishment statements.

This provides specific details about the settlement amounts and timing.

Labor organizations have strongly condemned this practice, labeling it an attempt to buy silence and evade genuine accountability. Kim Sang-yeon, a lawyer for the Korean Public Service and Transport Workers' Union, described the situation as a "serious crime" involving the organized and premeditated withholding of retirement funds through illegal changes to employment rules. He further criticized Coupang's actions as an exploitation of its financial power to suppress a case that should be subject to severe legal scrutiny.

About 30 out of 40 victims of unpaid retirement benefits have received settlement money.

This indicates the scale of the settlement offer.

The case stems from an indictment in February against Coupang CFS, its former CEO Um Sung-hwan, current CEO Jeong Jong-cheol, and the corporate entity itself. They are accused of violating the Employee Retirement Benefit Guarantee Act by intentionally evading 120 million won in retirement benefits for 40 temporary workers through a revision of employment rules in May 2023. The controversial clause, which effectively reset the retirement benefit calculation period for workers who worked at least 15 hours per week for 11 months but then worked less than 15 hours in the final month, has since been reverted following public outcry and parliamentary scrutiny.

The court asked Coupang CFS, 'Can you obtain a settlement agreement from the victims stating that they do not wish to be punished?'

This highlights the court's role in prompting the company's actions.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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