Former, current CEOs of Coupang affiliate indicted over alleged unpaid severance pay

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Former, current CEOs of Coupang affiliate indicted over alleged unpaid severance pay

A person passes by a Coupang delivery truck at the company's logistics center in Seoul on Jan. 23. [YONHAP]

A person passes by a Coupang delivery truck at the company's logistics center in Seoul on Jan. 23. [YONHAP]

 
A special counsel team has indicted the former and incumbent executives of a Coupang affiliate over allegations of unpaid severance pay owed to company employees, officials said Tuesday.
 
Chung Jong-chul, CEO of Coupang Fulfillment Services, a logistics subsidiary of Coupang, and his predecessor, Eom Seong-hwan, were indicted on charges of violating the Act on the Guarantee of Employees' Retirement Benefits, according to the team led by special counsel Ann Gweon-seob.
 

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They are suspected of changing the company's employment rules in May 2023 to the disadvantage of employees who had worked for more than one year to avoid paying their severance pay.
 
The team said they found that the company had unilaterally changed and executed its internal guidelines for severance pay a month before the official employment rules were altered.
 
Coupang, the leading e-commerce service provider in Korea, has faced strong public scrutiny and consumer backlash following revelations in November that the personal information of nearly 33 million users had been leaked.
 
The U.S.-listed company, founded by Korean American entrepreneur Bom Kim, generates about 90 percent of its revenue in Korea.

Yonhap
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