A special prosecutor's team in South Korea conducted another surprise search of e-commerce giant Coupang, Inc. on Monday. This raid is part of a compulsory investigation into allegations that the company failed to pay severance to some employees and that a senior prosecutor intervened in a manner favorable to the company's management.
On Monday morning, special prosecutor Ann Gweon-seob dispatched prosecutors and investigators to Coupang, Inc.'s headquarters in Seoul to seize materials related to severance payments. The company is suspected of having amended its employment rules in May 2023 to the detriment of workers and subsequently failing to pay their severance.
Last Tuesday and Wednesday, the special investigation team raided the headquarters of Coupang, Inc. and its logistics subsidiary, Coupang Fulfillment Services, on suspicion of violating the Employee Retirement Benefit Security Act.
The special prosecutors suspect that Coupang, Inc. failed to fulfill its obligation to pay 15.23 million won (approximately $10,620) in severance to seven daily workers. These individuals had worked for extended periods at a Coupang logistics center and were effectively treated as "full-time employees."
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