Former Coupang Fulfillment Service CEO Questioned as Suspect in Severance Pay Investigation
The investigation into allegations of unpaid severance pay at Coupang has intensified, with the special counsel team summoning Eom Sung-hwan, the former CEO of Coupang Fulfillment Service (CFS), for questioning as a suspect. The inquiry, led by special counsel Ahn Kwon-seop, marks a significant development in the case that has been ongoing since last year.
The special counsel team confirmed that Eom Sung-hwan appeared for questioning on the 26th, beginning at 10 a.m. This is the first time the former CEO has been formally brought before the special counsel as a suspect. He is currently facing accusations of violating the Act on Guarantee of Workers’ Retirement Benefits, a critical piece of legislation designed to protect employees’ retirement earnings.
This summons follows a series of investigative actions. Just last month, on the 23rd, the special counsel team executed a search and seizure operation involving Eom. Reports indicated that the warrant obtained for this operation explicitly named him as a suspect in the contentious severance pay case, citing breaches of the aforementioned Act.
Allegations Against Coupang Fulfillment Service
The core of the investigation revolves around allegations that CFS failed to disburse severance pay to its employees. This alleged failure is reportedly linked to a revision of employment rules implemented in May 2023. Critics and labor advocates claim that these revised rules introduced unfavorable criteria for calculating and disbursing severance payments, effectively circumventing the company’s obligations to its workers.
The Ministry of Employment and Labor’s Bucheon Branch had previously examined the matter. In January of last year, the branch determined that the revised employment rules were indeed invalid. Following this determination, the case was referred to the prosecution, with Eom Sung-hwan being singled out on charges of violating the Act on Guarantee of Workers’ Retirement Benefits.
Complexities and Suspicions of External Influence
However, the path of justice in this case has not been straightforward. The Bucheon Branch of the Incheon District Prosecutors’ Office ultimately decided not to prosecute the case, a decision that has since come under scrutiny.
Moon Ji-seok, the former chief prosecutor who was overseeing the case during the decision-making period, has raised serious concerns. He has alleged that external pressure from superiors may have influenced the decision to drop the charges. Specifically, Moon Ji-seok has pointed to Eom Hee-jun, the former head of the Bucheon Branch and currently a prosecutor at the Gwangju High Prosecutors’ Office, as a potential source of this alleged pressure.
In response to these accusations, Eom Hee-jun has vehemently denied any wrongdoing, characterizing Moon Ji-seok’s claims as “all false.” Furthermore, Eom Hee-jun has reportedly requested that the special counsel team investigate Moon Ji-seok himself, on charges of making false accusations. This counter-allegation adds another layer of complexity to an already intricate legal and investigative process.
The special counsel’s current focus on Eom Sung-hwan as a suspect underscores the gravity of the allegations and the determination of the investigative team to uncover the full truth regarding the severance pay disputes at Coupang Fulfillment Service. The outcome of these proceedings is keenly awaited by employees, labor rights organizations, and the wider public.
