• 2026.09.26 (Sat)
  • All articles
  • LOGIN
  • JOIN
Global Economic Times
[등록] 2026-09-01 15:48:31
  • Synthesis
  • World
  • Business
  • Industry
  • ICT
  • Distribution Economy
  • Well+Being
  • Travel
  • Eco-News
  • Education
  • Korean Wave News
  • Opinion
  • Arts&Culture
  • Sports
  • People & Life
    • International Student Report
    • With Ambassador
  • Column
    • Cho Kijo Column
    • Cherry Garden Story
    • Ko Yong-chul Column
    • Kim Seul-Ong Column
    • Lee Yeon-sil Column
  • Photo News
  • New Book Guide
MENU
 
Home > Synthesis

FTC Slams Korea's Top 5 Courier Giants with 3 Billion Won Fine Over 'Unfair Contracts'

Hwang Sujin Reporter / Updated : 2026-05-19 08:41:52
  • -
  • +
  • Print



SEOUL — South Korea’s antitrust watchdog has hit the nation’s five major logistics companies with a combined fine of over 3 billion KRW. The penalties come after the firms were caught shifting the financial burdens of workplace accidents, customer data leaks, and labor strikes onto their local operating agencies through unfair contract clauses.

The Fair Trade Commission (FTC) announced on Monday that it has imposed a total fine of 3.078 billion KRW (approximately $2.3 million USD) and issued corrective orders to Coupang Logistics Service, CJ Logistics (CJ_대한통운), Lotte Global Logistics, Hanjin, and Rosen for setting predatory terms and failing to issue timely contract paperwork.

The investigation was launched in August last year following growing public scrutiny over the courier industry's harsh working conditions. Critics have long argued that unfair corporate-to-agency contract practices indirectly fuel courier fatigue and severe on-site safety hazards.

Together, these five industry titans control over 90.5% of the domestic delivery market.

According to the FTC, the firms exploited their dominant market position to force local delivery agencies to bear all liabilities for industrial accidents, property damage, missing packages, and even corporate legal fees and fines. Furthermore, the contracts contained vague clauses regarding "breach of duty," allowing the parent companies to terminate agreements immediately without giving the agencies a chance to explain or contest the decisions.

Under South Korea's Subcontracting Act, prime contractors are strictly prohibited from squeezing the profits or violating the interests of subcontractors.

However, the watchdog found that the logistics giants routinely drafted clauses that protected their own bottom lines at the expense of local operators. Unfair practices included withholding interest earned on cash collateral and forcing agencies to pay for real estate mortgage fees.

The companies were also found to have heavily delayed the issuance of official subcontracts. Out of 2,055 monitored transactions involving delivery and terminal operations, some agencies only received their legal paperwork up to 761 days after the actual work had already begun. By law, written contracts must be issued before any services commence.

The FTC broke down the individual fines as follows:

Coupang Logistics Service: 759 million KRW
Hanjin: 696 million KRW
Lotte Global Logistics: 633 million KRW
CJ Logistics: 612 million KRW
Rosen: 378 million KRW

In response to the probe, the five courier companies have submitted rectification plans and are currently revising their contracts. Lotte Global Logistics has already finished updating its agreements, while the remaining four companies are required to complete their contract revisions within 90 days of receiving the FTC's official ruling.

This ruling follows a broader crackdown by the FTC on unfair subcontracting practices across various industries. Just a day prior, the watchdog penalized three construction firms 729 million KRW for shifting industrial accident liabilities onto their subcontractors.

"The contracts between major logistics firms and local agencies directly dictate the income levels and scope of responsibility for individual delivery drivers," said Kim Dong-myung, head of the FTC’s New Business Subcontract Bureau. "When unfair costs and liabilities are dumped onto these local agencies, that heavy burden inevitably trickles down to the gig workers and drivers on the front lines."

[Copyright (c) Global Economic Times. All Rights Reserved.]

  • #Hormuz Impasse
  • #globaleconomictimes
  • #micorea
  • #mykorea
  • #nammidonganews
  • #singaporenewsk
  • #Samsung
  • #Daewoo
  • #Hyos
Hwang Sujin Reporter
Hwang Sujin Reporter

Popular articles

  • South Asia Emerges as Hydropower Hub Driven by Abundant Himalayan Water Resources, While Urgent Need for Flood Preparedness Grows

  • Why K-Pop Idols Fight Evil Spirits: Exploring the Shamanic Roots of K-Culture

  • Engineering a Revolution: The Innovation and Safety of Boeing's 777X Folding Wingtips

I like it
Share
  • Facebook
  • X
  • Kakaotalk
  • LINE
  • BAND
  • NAVER
  • https://globaleconomictimes.kr/article/1065570025108311 Copy URL copied.
Comments >

Comments 0

Weekly Hot Issue

  • Beyond Drug Smuggling, Signs of "Domestic Manufacturing"… Special Measures Must Be Established 
  • Geoje, Still Scarred by Flood Damage, Receives 'Chuseok Warmth' from Across the Country Over 2 Billion Won Donated Since Disaster; 380,000 Items Worth 1.1 Billion Won in Relief Supplies
  • Season-Over Lee Jung-hoo: Only the Burden of a 33.5 Billion Won Price Tag Remains for the 2026 Season
  • Public Criticism on Stage... The Dignity of a Senior Singer Missed by Shim Soo-bong 
  • 'Slump in Results Followed by Asylum Scandal' – North Korean Delegation Shaken in Nagoya
  • Xi Jinping Arrives in Washington… Begins 3-Day State Visit to the U.S.

Most Viewed

1
Desperate Pursuit of HBM: China’s AI Chip Sector Faces Crippling Bottlenecks as Gray Market Prices Soar
2
Chuncheon to Light Up the "Lights of Ethiopia": The 16th Ethiopia Road World Coffee Festival & Meskel Festival Opens on September 25
3
The Era of "Working AI" Has Arrived: Why OpenAI's GPT-6 Astra is a Blessing for Samsung Electronics and SK Hynix
4
 Iran and Gulf Nations to Hold First Ministerial Meeting in Salalah for Hormuz Navigation
5
"Coffee Aroma and the Dance of Peace: A Global Cultural Harmony Unfolding This Chuseok" 
광고문의
임시1
임시3
임시2

Hot Issue

South Korea and U.S. Leaders Hold Pivotal Summit in New York

From a Symbol of Security to a Space for Healing... Walking Paju's Veiled 'Re:DMZ' Forest

Pocheon Hantan River Garden Festa

A Different Side of Gyeonggi Province Seen While Running… Autumn Running Courses Recommended by 'Run Gyeonggi'

Fashion Runway Show 2026

Global Economic Times
korocamia@naver.com
CEO : LEE YEON-SIL
Publisher : KO YONG-CHUL
Registration number : Seoul, A55681
Registration Date : 2024-10-24
Youth Protection Manager: KO YONG-CHUL
Singapore Headquarters
5A Woodlands Road #11-34 The Tennery. S'677728
Korean Branch
Phone : +82(0)10 4724 5264
#304, 6 Nonhyeon-ro 111-gil, Gangnam-gu, Seoul
Copyright © Global Economic Times All Rights Reserved
  • 향기네무료급식
  • BCB부천방송
  • 반달곰 프로젝트
Search
Category
  • All articles
  • Synthesis
  • World
  • Business
  • Industry
  • ICT
  • Distribution Economy
  • Well+Being
  • Travel
  • Eco-News
  • Education
  • Korean Wave News
  • Opinion
  • Arts&Culture
  • Sports
  • People & Life 
    • 전체
    • International Student Report
    • With Ambassador
  • Column 
    • 전체
    • Cho Kijo Column
    • Cherry Garden Story
    • Ko Yong-chul Column
    • Kim Seul-Ong Column
    • Lee Yeon-sil Column
  • Photo News
  • New Book Guide
  • Overseas Koreans
  • Multicultural News