E-commerce giant Coupang and its affiliates have reached a landmark agreement with small business owners and labor organizations. (Image courtesy of Yonhap)
SEOUL, Feb. 20 (Korea Bizwire) — E-commerce giant Coupang and its affiliates have reached a landmark agreement with small business owners and labor organizations, committing to improved working conditions and financial support measures.
The agreement, signed on February 19, includes the abolition of a controversial policy that had been linked to overwork among delivery drivers.
The so-called “cleansing system,” which revoked delivery routes from drivers who failed to meet work quotas such as package collection or minimum working days, had long been criticized as a major factor contributing to driver fatigue. Under the new agreement, this policy will be permanently scrapped.
The Democratic Party’s Task Force for Economic Justice, known as Euljiro Committee, hosted the signing ceremony at the National Assembly. The deal expands Coupang’s “Fast Settlement Service,” which allows merchants and small business owners to receive payments more quickly, easing financial burdens caused by long billing cycles.
The so-called “cleansing system,” which revoked delivery routes from drivers who failed to meet work quotas such as package collection or minimum working days, had long been criticized as a major factor contributing to driver fatigue. (Image courtesy of Yonhap)
Participants in the agreement include Coupang’s key subsidiaries—Coupang Eats, Coupang Logistics Services, and Coupang Fulfillment Services—as well as advocacy groups such as the Overwork Death Countermeasures Committee and the National Franchise Owners’ Association.
In a parallel effort, a new industry-wide social dialogue body for delivery app stakeholders was launched on the same day. This forum brings together Coupang Eats, self-employed business associations, delivery riders’ unions, and civil society organizations to address key issues such as commission fee reductions, the introduction of a minimum fare system for riders, and delivery restrictions during severe weather conditions.
The Democratic Party credited six months of mediation efforts by the Euljiro Committee for making the agreement possible. As part of the discussions, Coupang also committed to compensating and issuing formal apologies to the families of delivery drivers, logistics center workers, and day laborers who suffered workplace-related fatalities.
Additionally, Coupang Logistics Services pledged to convert 100% of its sorting workers into directly employed staff rather than contract positions.
“We take our responsibility to small business owners, self-employed workers, and laborers seriously,” said Min Byung-deok, chair of the Euljiro Committee. “This agreement is just the beginning—we will continue working toward solutions that promote fairness and sustainability.”
The agreement signals a shift in labor relations within South Korea’s booming e-commerce sector, underscoring growing public and political pressure for better working conditions and corporate accountability.
M. H. Lee (mhlee@koreabizwire.com)
