[비즈한국] On the 16th, President Lee Jae-myung appointed Ahn Kwon-seop, an attorney at the law firm Daeryun, as the permanent special prosecutor to investigate allegations of external pressure regarding the non-indictment of Coupang's unpaid severance pay case. Special Prosecutor Ahn, a member of the 25th Judicial Research and Training Institute class, served as a prosecutor from 1996 to 2020. Under the Permanent Special Prosecutor Act, he will undergo a 20-day preparation period and then conduct an investigation into the relevant allegations for up to 90 days.
There are allegations that higher-ups in the prosecution forced a "no-suspicion" decision regarding the Coupang Fulfillment Services (CFS) unpaid severance pay case this past April. In May 2023, CFS revised its employment rules to add a clause stating, "Periods where average weekly working hours are less than 15 hours will be excluded from the calculation of continuous service." In other words, even if a daily worker worked for one year, they would be unable to receive severance pay if they had worked less than 15 hours a week at any point. The Ministry of Employment and Labor’s Bucheon Office referred the case to the prosecution on charges of violating the Employee Retirement Benefit Security Act, but the prosecution issued a non-indictment decision.
As the controversy erupted, CFS CEO Jung Jong-cheol stated during the October National Assembly audit by the Environment and Labor Committee, "We have decided to revert the (regulation) to its original state to improve conditions for daily workers," adding, "I apologize for the misunderstanding and confusion caused, which was contrary to our intentions."
However, the controversy over the prosecution "favoring Coupang" is still ongoing. During the October National Assembly audit, Prosecutor Moon Ji-seok, who was in charge of the investigation, claimed, "A guideline for a no-suspicion investigation was delivered," and "Based on that guideline, the case was reported to the Supreme Prosecutors' Office with core search-and-seizure results omitted, leading to the final non-indictment decision." At the time, Prosecutor Moon was the chief prosecutor at the Bucheon Branch of the Incheon District Prosecutors' Office, and his superior, the Chief Prosecutor of the Bucheon Branch, was Eom Hee-jun.
On October 23, appearing before the National Assembly Legislation and Judiciary Committee audit, Prosecutor Moon Ji-seok revealed, "On March 7 of this year, then-Chief Prosecutor Eom Hee-jun used profanity and verbal abuse for about 9 minutes, stating he would order an inspection by the Supreme Prosecutors' Office and reassign the case." In response, Prosecutor Eom Hee-jun countered, "I never ordered a no-suspicion decision or provided any guidelines."
Prosecutor Moon Ji-seok's revelation became a major topic in political circles. Democratic Party leader Jung Chung-rae stated on social media, "We must strictly investigate and severely punish the high-ranking prosecutors who exerted external pressure," adding, "I applaud the courage of Prosecutor Moon Ji-seok for telling the truth." Democratic Party Supreme Council member Jeon Hyun-heui also remarked, "I shed tears while watching the tears of a righteous incumbent prosecutor," and added, "I am deeply grateful for the courage of Prosecutor Moon Ji-seok, who risked disadvantages and blew the whistle on unfair orders within the prosecution regarding Coupang's unpaid severance pay case."
President Lee Jae-myung launched the permanent special prosecutor to investigate the allegations. During a senior aides meeting in October, President Lee said, "They are using the public authority entrusted to law enforcement officials for maintaining order and social discipline to cover up obvious illegalities or to manipulate and fabricate cases, thereby disturbing national order and seeking private profit." While he did not mention the case specifically, political circles view it as targeting Coupang and Prosecutor Eom Hee-jun.
Once the special prosecutor begins the investigation in earnest, the fallout could spread to Coupang. There are widespread rumors inside and outside Coupang that the company has frequently communicated with the prosecution. The Coupang Logistics Center branch of the Korean Confederation of Trade Unions (KCTU) argued, "In the process of digging into the severance pay issue, it has been revealed to the world that Coupang is not just a predatory company, but the core of a prosecution-labor ministry-Kim & Chang cartel that holds the prosecution and the labor ministry in its grip," adding, "An immediate investigation is needed into this massive cartel involving Coupang, Kim & Chang, the prosecution, and the Ministry of Employment and Labor." Kim & Chang Law Firm has previously represented CFS.
Since the late 2010s, Coupang has recruited dozens of individuals who previously served as high-ranking officials, legal professionals, and parliamentary aides. Analysts suggest this is to utilize them as communication channels with political circles and law enforcement agencies. There are even suspicions that these are used as lobbying channels rather than mere communication. In May of this year, Coupang even hired labor figures, such as appointing Lee Sang-jin, former head of the Federation of Korean Trade Unions (FKTU) organizational expansion headquarters, as a vice president at Coupang Logistics Service.
On October 20, Justice Party leader Kwon Young-guk criticized this, saying, "It has long been known that Coupang recruits former high-ranking officials for external lobbying," adding, "They are filled with people who were parliamentary aides, in the Presidential Office, the Fair Trade Commission, the National Police Agency, the Korea Customs Service, the media, the prosecution, judges, and lawyers, and there are even former Ministry of Employment and Labor officials and labor inspectors among them."
Because this case is being watched closely by political circles and civic groups, and a special prosecutor has been activated, the investigation is not expected to end easily. In particular, Prosecutor Eom Hee-jun is not viewed favorably by the ruling party, as he previously investigated Cho Kuk, leader of the Rebuilding Korea Party, and the Daejang-dong development scandal.
The opposition People Power Party (PPP) opposes the special prosecutor, but it is not necessarily defending Coupang. PPP Chief Spokesperson Park Sung-hoon pointed out, "If you don't trust the prosecution's internal inspection and investigation results, you should go through the Corruption Investigation Office for High-ranking Officials (CIO)," adding, "The reason they insisted on launching a special prosecutor is clear regarding the intentions of the Lee Jae-myung administration and the Democratic Party. They are trying to turn the special prosecutor into a political issue factory to create public opinion favorable to the local elections next year."
In the meantime, the party in question, Coupang, is refraining from issuing an official statement. Bizhankook inquired with Coupang regarding their stance on this special prosecutor, but did not receive a response.