SEOUL, Jan. 15, 2025 — South Korea’s Ministry of Employment and Labor has ruled that Coupang delivery drivers, known as Quick Flexers, are not classified as employees under the Labor Standards Act, effectively ending allegations of illegal subcontracting against the e-commerce giant.
The decision follows an investigation prompted by the death of delivery driver Jeong Seul-gi in May 2024, which had raised concerns about Coupang’s employment practices. The Ministry announced its findings on January 14, 2025, after conducting a comprehensive labor inspection of Coupang Logistics Service (Coupang CLS), a logistics subsidiary of Coupang.
The inspection covered three key areas: industrial safety and health regulations, compliance with basic labor standards regarding temporary workers, and potential illegal dispatching of delivery drivers.
Delivery Drivers Deemed Independent Contractors
The Ministry concluded that Coupang’s Quick Flexers, including the late Jeong Seul-gi, are independent contractors rather than employees. This determination negates the possibility of an illegal dispatch relationship between Coupang CLS and its delivery drivers.
Investigations revealed that delivery drivers signed subcontracting agreements with local delivery agencies, classifying them as self-employed. Despite claims that Jeong received direct instructions from Coupang CLS via KakaoTalk, the Ministry found no evidence to support employee misclassification.
The Ministry’s probe included 83 on-site inspections, 137 interviews, and analysis of KakaoTalk messages from 1,245 drivers over the past year. Findings indicated that drivers owned and maintained their delivery vehicles, controlled their work schedules, and could enlist help or adjust delivery times at their discretion.
Moreover, they were paid per delivery rather than receiving a fixed salary, further supporting their independent status.

On July 29, the Jeju branch of the Korean Confederation of Trade Unions (KCTU) held a press conference outside Coupang’s logistics center in Aewol-eup, Jeju City, calling for a probe into recent worker deaths and special labor inspections. (Image courtesy of Yonhap)
Industrial Safety Violations and Labor Law Breaches
While the illegal dispatch claims were dismissed, the inspection uncovered significant safety violations. Of the 82 facilities inspected—including Coupang CLS headquarters, sub-hubs, delivery camps, and delivery agencies—41 were found in violation of industrial safety laws.
Four cases have been referred for legal action, including failures to secure forklift keys, improper installation of conveyor work platforms, lack of protective measures against electric shock, and operating uncertified lifts. Additionally, 53 fines totaling approximately 92 million KRW ($70,000) were imposed, along with 34 corrective actions.
Penalties were also levied for failing to report industrial accidents (21 million KRW), neglecting initial labor training (15.14 million KRW), and not conducting special health checkups for night workers (5.4 million KRW).

Despite its lower market share, Coupang leads in terms of net sales among the businesses surveyed by the Fair Trade Commission. (Image courtesy of Coupang)
Discovery of Fraudulent Employment Contracts
The Ministry also uncovered widespread use of so-called “fake 3.3 contracts,” a scheme where workers are falsely registered as independent contractors to avoid social insurance contributions and severance pay. Over 360 temporary workers at Coupang CLS and affiliated logistics centers were subjected to this practice.
Additionally, 136 violations of the Labor Standards Act were identified, including 150 million KRW in unpaid wages and failure to provide written employment conditions.
This investigation marks the first full-scale inspection of Coupang’s 24-hour delivery operations. The Ministry has mandated Coupang CLS to develop plans for improving workers’ health protection and enhancing workplace safety.
Choi Tae-ho, Director of Industrial Accident Prevention Supervision at the Ministry of Labor, stated, “We will guide Coupang CLS to address these violations and monitor the implementation of corrective measures.”
The ruling provides temporary relief for Coupang regarding labor classification but places the company under scrutiny for its safety and labor practices.
M. H. Lee (mhlee@koreabizwire.com)