S. Korea: Labour Ministry clears Coupang by classifying drivers as non-employees with no formal relationship, prompting backlash from labour unions & opposition parties
[Unofficial translation provided by the Business & Human Rights Resource Centre]
“Labour ministry declares Coupang delivery drivers not workers, sparking criticism of “immunity for illegal Ppractices.””, 15 January 2025
(…) The South Korean Ministry of Labour released the results of a comprehensive labour inspection into Coupang Logistics (Coupang CLS) on January 14. (…) The inspection, focused on alleged illegal dispatch practices involving delivery drivers, concluded that Coupang's drivers do not qualify as workers under the Labour Standards Act. As a result, the Ministry determined that no formal dispatch relationship exists between Coupang CLS and its delivery drivers.
…The controversy over the alleged illegal dispatch practices within Coupang CLS was ignited by the tragic death of delivery driver Jeong Seul-gi, who passed away from overwork…
The company has been accused of treating its delivery drivers as employees in practice—directly supervising their work—while formally classifying them as independent contractors, thus allegedly enabling illegal dispatch practices.
…In response, labour unions and opposition political parties have criticised the Ministry for granting Coupang an "immunity" from responsibility for its alleged illegal business practices through this labour inspection.