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| Coupang founder Kim Bom poses next to boxes containing fresh food at the company's headquarters in Seoul in this 2020 file photo. Courtesy of Coupang |
Customers warn of boycott against Olympic broadcasting exclusive on Coupang's OTT
By Kim Jae-heun
A fire that broke out at Coupang's distribution center in Icheon, Gyeonggi Province, has caused problems across the company's businesses, with allegations being raised about poor working environments that have led to calls to boycott its platform service and denunciations of Chairman Kim Bom.
Coupang had long been urged to improve the environment at its worksites after nine employee deaths were linked to overwork; and then on June 17, one of its three biggest logistics facilities here burnt down, leading to the death of a firefighter named Kim Dong-sik.
"Workers there had long pointed out the possibility of an electric device there catching fire. There have been small and big incidents that occurred but the company never provided countermeasures," a union representative said June 18.
Even on the day the fire broke out, the water sprinkler failed to operate for eight minutes.
This triggered public sentiment against the online retailer, at which point, Kim stepped down from the board of the company.
Coupang said the decision had been made ahead of the fire as Kim wanted to spend more time on the company's overseas expansion. But the timing led customers to believe he was trying to avoid taking responsibility for the fire.
"Kim offered to resign from his position on the board May 31. But coincidently the procedure was completed on the day of the fire," a Coupang official said.
Nonetheless, the boycott call is expanding on Twitter and Instagram with people sharing information on how to cancel their membership.
"Nine people have died working in a harsh environment and a fire broke out at a logistics center. American national Kim has to prove that he is not using the Korean market just to make money," one netizen wrote on Instagram Monday.
Coupang's late apology for the fire also angered customers ― it took the company 32 hours, while Kim has still not made a comment.
The online retailer said it took full responsibility for the death of the firefighter and will support his bereaved family by providing scholarships for the deceased's children. Coupang also promised to pay salaries to 1,700 workers who can't work at the logistics center in Icheon until they are reassigned to a new position.
Meanwhile, Coupang beat out Naver and Kakao in winning the right to exclusively broadcast the 2021 Tokyo Olympic Games on its over-the-top (OTT) service this summer.
However, due to controversies revolving around the fire and Kim's resignation, people have warned they will boycott Coupang's OTT service as well as its online retail platform.
