Permanent Special Prosecutor Summons Coupang CFS CEO Jongcheol Jung as Suspect in 'Unpaid Severance Pay Allegations'

Suspected Violation of the Employee Retirement Benefit Security Act

The permanent special prosecutor's team led by Kwonseop Ahn, which is investigating allegations of unpaid severance pay at Coupang, summoned Jongcheol Jung, CEO of Coupang Fulfillment Services (CFS), as a suspect on February 2.

Jongcheol Jung, CEO of CFS, responding to a parliamentary inquiry. Photo by Yonhap News

In a press release that day, the special prosecutor's team announced, "Starting at 10 a.m., an interrogation is underway with Jongcheol Jung, CEO of Coupang Fulfillment Services Limited, as a suspect," adding, "The suspected offense is a violation of the Employee Retirement Benefit Security Act."

CEO Jung and former Coupang CFS CEO Seonghwan Eom are suspected of amending Coupang CFS’s regulations regarding the payment of severance-related compensation to the disadvantage of employees in May 2023, thereby withholding payments that should have been classified as severance pay.

At that time, Coupang changed its policy from "excluding only periods when daily workers who worked for more than one year had less than 15 working hours per week" to "including only those who worked for more than one year and had at least 15 working hours per week." If there was even a single day during the employment period when the weekly working hours fell below 15, the period for calculating severance pay would be reset from that day.

The special prosecutor's team believes that Coupang logistics center workers were under the direct instruction and supervision of the employer, and that, due to repeated employment contracts, their service lasted more than one year, making them eligible for severance pay.

During the investigation, the special prosecutor's team is expected to question CEO Jung about the circumstances and decision-making process behind the changes to the work rules. On January 26, former CEO Eom was also summoned and questioned by the special prosecutor's team as a suspect.

This content was produced with the assistance of AI translation services.