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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] South Korea’s Fair Trade Commission has sanctioned five major logistics companies—including Coupang CLS, CJ Logistics, Lotte Global Logistics, Hanjin, and Logen—for unfair subcontracting practices that shifted safety-related costs and liabilities onto subcontractors.
According to the regulator, the companies imposed contract clauses requiring local delivery agencies to bear civil and criminal liability for industrial accidents, compensate for losses arising from labor strikes, and even cover legal fees related to lawsuits and complaints.
The FTC found that these provisions violated subcontracting laws, as they transferred responsibilities that should be borne by the primary contractors. In some cases, companies also included clauses allowing immediate contract termination based on vague reasons such as reputational damage.
Authorities noted that such imbalanced contractual structures often cascade down to delivery workers, resulting in unfair treatment at the operational level.
The investigation also revealed that several firms failed to issue contracts in a timely manner before assigning work, with Coupang recording the highest number of violations.
The FTC imposed corrective orders along with total fines of KRW 3.078 billion on the companies, aiming to curb unfair practices in the delivery sector and strengthen protections for subcontractors.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
