The Fair Trade Commission (FTC) of South Korea fined five major parcel delivery companies—including Coupang Logistics Services, CJ Logistics, Lotte Global Logis, Hanjin, and Logen—a combined 3.078 billion won for embedding unfair contract clauses. These clauses shifted liability for courier safety incidents, including deaths from overwork, to third-party agencies. The FTC reviewed 9,186 contracts and found that 2,055 were issued more than a year after service began, with delays as long as 761 days. Penalties totaled 3.078 billion won, with individual fines ranging from 378 million won to 759 million won. All firms except Lotte must revise contracts and finalize new agreements within 90 days. The FTC stated the reforms aim to reduce courier workload and improve safety.
FTC Imposes 3.078 Billion Won in Penalties on Top Parcel Carriers
According to en.sedaily.com, the Fair Trade Commission (FTC) of South Korea imposed a total of 3.078 billion won in penalties and corrective measures on five major parcel delivery companies for embedding unfair contractual clauses that shifted liability for courier safety incidents—including deaths from overwork—to third-party agencies and transport contractors.
Major Companies Involved and Penalties by Firm
The five companies targeted—Coupang Logistics Services (CLS), CJ Logistics, Lotte Global Logis, Hanjin, and Logen—collectively control more than 90% of the domestic parcel delivery market. The FTC found that these firms used standardized contracts that transferred civil and criminal liabilities for courier accidents to agencies. Penalties were distributed as follows: 759 million won to Coupang, 696 million won to Hanjin, 633 million won to Lotte Global Logis, 612 million won to CJ Logistics, and 378 million won to Logen. Lotte was exempt from corrective orders because it had already updated its contracts prior to the review.
Contractual Delays and Non-Compliance
The FTC reviewed 9,186 contracts across the industry and identified widespread failure to issue written contracts in a timely manner. In 2,055 cases, written contracts were not provided before service began, with delivery firms issuing them as late as 761 days after operations started. Coupang accounted for 1,047 of these delayed cases, Lotte for 580, and Hanjin for 270. The FTC imposed 600 million won in fines specifically for violating the legal obligation to provide written contracts.
Unfair Clauses and Operational Risks
Contract provisions included clauses allowing immediate termination of agreements without allowing the counterparty to present a defense. These arrangements increased financial and legal exposure on agencies, which often responded by reducing courier commissions or increasing delivery quotas. According to the FTC, such practices could exacerbate overwork and endanger courier safety. The agency also noted that some contracts passed on administrative fines and legal fees to agencies, further inflating operational risk.
“It is significant that major delivery companies accounting for more than 90% of the domestic parcel market will now correct unreasonable special clauses,” said Kim Dong-myung, head of the FTC’s New Industries Subcontracting Investigation Division. “We expect this to help ease the workload and improve safety for parcel delivery workers.”
Corrective Measures and Compliance Deadlines
All firms except Lotte Global Logis must revise contract provisions and conclude new agreements within 90 days of receiving the FTC resolution. The changes must eliminate clauses that transfer liability for safety incidents and ensure timely delivery of written contracts. The FTC emphasized that these reforms aim to reduce systemic pressure on couriers and promote fairer subcontracting practices in the logistics sector.
Source: en.sedaily.com
Compiled from international media by the SCI.AI editorial team.
