[비즈한국] With the massive leakage of user personal information, Coupang is facing growing criticism as it has been revealed that the company has significantly strengthened its government relations (GR) operations by recruiting numerous figures from political and legal circles over the past few years. Choi Eun-seok, Chief Spokesperson for the People Power Party, remarked, “It appears the company has been obsessed with strengthening its GR capabilities to quietly cover up problems rather than resolving them when they arise.”
GR refers to work involving interaction with government agencies, legislative bodies, and judicial institutions. These teams aim to foster favorable public opinion among political and investigative circles and, if necessary, communicate the company's stance directly or indirectly. GR organizations often operate under names such as 'Social Contribution Team,' 'External Cooperation Team,' or 'CR (Corporate Relations) Team.'
Most large conglomerates are currently strengthening their GR organizations. However, Coupang stands out for having recruited a significant number of GR personnel in a short period compared to other major firms. According to data released by Democratic Party lawmaker Choi Min-hee, from January of last year to November of this year, 25 individuals with backgrounds in the Presidential Secretariat, the Prosecution Service, the National Police Agency, the Korea Fair Trade Commission, the Ministry of Trade, Industry and Energy, the Ministry of Employment and Labor, and National Assembly aide positions were cleared for employment at Coupang.
What is the Identity of Coupang's Gangnam Office?
Coupang is suspected of operating a secret office in Gangnam-gu, Seoul. It is known that former Coupang CEO Park Dae-joon frequently worked out of this Gangnam office. There are also rumors that whenever controversies surrounding Coupang arose, the former CEO would reprimand GR personnel at this location. Coincidentally, after the secret office became known to the public, the former CEO announced his resignation.
Bizhankook visited the building identified as Coupang’s secret Gangnam office on the 18th. The building is located near Gangnam Station on Seoul Subway Line 2. No record of a lease agreement by Coupang could be found in the real estate registry. However, since registering a lease is not mandatory, there are no legal issues involved.
The Coupang office is reportedly located on the 9th floor. The Coupang logo was visible through a crack in the door. However, the door was locked, and despite repeated calls, no representative could be met. Employees from nearby offices and the building management also replied that they “know nothing in detail.”
Coupang has offices throughout the metropolitan area. Beyond its headquarters in Songpa-gu, it has offices in Seolleung and Pangyo, allowing employees to choose their workspace freely depending on the situation. These offices are publicly disclosed; the Seolleung and Pangyo offices have Coupang signage on the buildings, and their addresses are listed on the Coupang website.
In contrast, information regarding the Gangnam office cannot be found anywhere. Even when checking the exterior of the building or the directory, there is no signage or name for Coupang. There is no nameplate at the entrance of the 9th-floor office, making it look like a vacant space. The prosecution recently raided Coupang's headquarters over several days, but it is reported that the Gangnam office was not included in the search and seizure.
Bizhankook reached out to Coupang to hear their stance regarding the Gangnam office, but a Coupang representative stated, “We have no specific comment.”
Coupang's Lobbying Efforts Exposed
Many of Coupang's key current and former executives have backgrounds in GR. Former Coupang CEOs Kang Han-seung and Park Dae-joon, Coupang Eats Service CEO Kim Myung-kyu, and Coupang Vice President Min Byung-ki all have experience in GR. Others, such as Coupang Vice President Jo Yong-woo (former Chief of Staff to the Chairman of the Rebuilding Korea Party) and Coupang Logistics Service CEO Hong Yong-jun, who is a former prosecutor, also stand out.
Since GR is not public work, its true nature is rarely exposed to the outside. However, it was recently revealed that Democratic Party floor leader Kim Byung-ki had a meal with a Coupang GR executive in September. Some in political circles raise suspicions that Coupang might have requested that the floor leader exclude them from being called as a witness for the parliamentary audit.
Floor leader Kim Byung-ki explained on social media, “The pasta I ordered was 38,000 won, and I warned the Coupang executive against increasing their GR organization and specifically against excessive lobbying activities targeting the National Assembly,” adding, “I made it clear that witnesses for the parliamentary audit are decided by the standing committee and that I would not intervene.”
In response, the Justice Party pointed out, “Even just the fact that the floor leader of the ruling party had a meal with a representative of a company subject to audit ahead of the parliamentary audit raises potential conflicts of interest and is ethically and politically careless,” adding, “Floor leader Kim did not mention who paid for the lunch. Whether it was 38,000 won or 700,000 won, who paid for a meal with an audited company is critical information that defines the nature of the meeting.”
In the wake of the recent hacking incident, Coupang's GR organization has proven ineffective. When Coupang Inc. Chairman Bom Kim failed to attend the parliamentary hearing held on the 17th, the National Assembly’s National Policy Committee decided to file a complaint against him. Major parties, including the Democratic Party and the People Power Party, have issued daily statements criticizing Coupang, and the prosecution has also begun a raid. Public sentiment is also worsening by the day.
Some predict that changes will occur in Coupang’s GR organization once the hacking incident is settled. A business world official stated, “Even if Coupang is a rising company, they need to structure their GR team appropriately to the company's size, but I am not sure if that much is necessary,” adding, “While strengthening GR or public relations might work for small incidents, there is a limit to how much they can cover up a major scandal.”
The National Assembly’s Science, ICT, Broadcasting, and Communications Committee held a hearing targeting Coupang on the 17th, but Chairman Bom Kim did not attend, drawing criticism as a “toothless hearing.” In response, the Democratic Party announced it would push for a joint hearing involving all relevant standing committees. Democratic Party floor spokesperson Kim Hyun-jung stated on the 18th, “We are preparing a joint hearing involving the Science, ICT, Broadcasting, and Communications Committee, the National Policy Committee, the Land, Infrastructure and Transport Committee, and the Environment and Labor Committee.” Given this atmosphere, the activities of Coupang’s GR organization seem likely to face significant limitations.