Coupang, which has come to dominate Korea's retail ecosystem, has absorbed large numbers of talent from inside and outside the industry, but turnover has also been high. As it hires thousands of people every year, short tenure has become entrenched. Observers say it is the result of a combination of the e-commerce industry's characteristics, which differ from offline retail, and Coupang's unique corporate culture.
According to data submitted by Kang Deuk-gu of the Democratic Party of Korea from the National Health Insurance Service on the 18th, Coupang's average length of service stood at about three years as of the end of Oct. Tenure is typically used as an indicator of a company's pay, benefits, and work environment, and it is common for large corporations to exceed 10 years.
◇ Less than one year of service is the most common
By length of service, fewer than one year accounted for the most at 3,732. That was followed by at least two years but less than three (1,363), at least four but less than five (1,307), and at least three but less than four (1,018). From five years and up, the number fell below 1,000 and continued to decline, then ticked up slightly for at least nine but less than 10 years (242) and 10 years or more (445).
Over the past 10 years, Coupang has hired anywhere from several thousand to more than 20,000 people annually, but many have also left during the same period. In 2017, 2022 and 2023, the number of departures exceeded new hires. In particular, in 2022, 12,864 people left—twice the number of new hires (6,432). In 2023, departures (14,422) were 2.5 times the number of hires (5,179).
As logistics affiliate Coupang Logistics Service (CLS) was spun off, Coupang Friends (CFC), the directly employed delivery workforce, were processed as having left the company. Currently, in addition to CFC, "QuickFlex" couriers affiliated with agencies that partner with Coupang CLS also work as Coupang delivery staff.
Retail industry officials said Coupang's short tenure is related to the characteristics of the e-commerce industry. A high share of roles such as MDs (merchandisers) and developers rely heavily on individual capability, and with rapid market shifts, frequent job changes are inevitable, they said. The rise of competitors aggressively expanding and competing for talent, such as Naver and C-commerce (China-based e-commerce), is also seen as a factor.
A department store official said, "In the e-commerce industry, after gaining experience for a certain period, such as handling a specific brand or carrying out a project, there are many cases of moving to places that offer better terms," adding, "As new companies keep emerging, there are many opportunities to raise salaries, while offline retailers have similar structures and compensation, giving less incentive to move."
In fact, the average tenure at e-commerce companies representing fashion and food—Musinsa, Kurly, and Oasis—also came in around two years. Based on this year's semiannual reports, Musinsa and Kurly are at 2.2 years, and Oasis is at 2.3 years. Units affiliated with large corporations such as Gmarket, SSG.com (SSG.com), Lotte ON, and 11Street are estimated at five years, which is relatively long, but still short compared to offline retailers or large manufacturing companies.
◇ Some point to Coupang's unique corporate culture
Some point to Coupang's unique corporate culture as a cause of attrition. It is said that systems to help new hires adapt—such as onboarding education and senior-junior networking—are not sufficiently established, leading not a few to decide to change jobs or resign within a year. While this differs by role, many say the overall workload and performance pressure are intense.
Coupang operates a performance review system that assigns grades based on individual results. Among employees, controversy persists over the LE (Least Effective) grade, which is said to be forcibly assigned to the bottom 10%. Many argue that the performance improvement program (PIP), which must be undertaken if one receives LE consecutively, effectively labels a person as a low performer and serves as a tool to induce voluntary resignation.
Earlier, the Coupang labor union conducted a survey in September of employees regarding the LE system. The Coupang union said, "Of those who participated in the survey, 96% said the LE and PIP systems are being operated unfairly," adding, "Seventy-eight percent reported increased psychological burden, decreased motivation and engagement at work, and 70% said they are considering changing jobs."
This year, frequent personnel changes at Coupang have continued. According to Coupang's employment insurance acquisition and loss data compiled by the Ministry of Employment and Labor (MOEL), from January to Oct., the number of new hires (new employment insurance enrollees) averaged 475 per month. During the same period, departures (losses) averaged about 370 per month. Coupang's total head count is a little over 12,000.