On a brisk morning in Jinju, Gyeongnam, the usually bustling CU Jinju Logistics Center became the stage for a tragedy that has sent shockwaves through South Korea’s convenience store sector. On April 20, 2026, a 2.5-ton cargo truck struck three members of the Cargo Solidarity Union as they protested outside the facility, demanding better pay and working conditions. One union official, a man in his 50s, died after being rushed to the hospital in cardiac arrest. Two others suffered serious injuries. The fatal accident, captured on CCTV, unfolded as union members attempted to block a substitute truck—dispatched by management to bypass the ongoing strike—from leaving the center. According to police and emergency services, the truck driver was immediately arrested on suspicion of special injury, with the possibility of upgraded charges pending further investigation.
This tragic incident is just the latest escalation in a labor dispute that has gripped South Korea’s largest convenience store chain, CU, and its logistics network for over two weeks. The strike began on April 5, 2026, when cargo workers belonging to the CU branch of the Cargo Solidarity Union walked off the job for the first time since forming their union. Their demands: increased transportation fees, improved labor conditions, and—most crucially—direct negotiations with BGF Retail, the parent company of CU and its logistics subsidiary, BGF Logis.
As reported by Maeil Labor News and corroborated by other outlets, the strike involves about 10% of drivers at four major regional logistics centers—Jinju, Wonju, Anseong-Hwaseong, and Gwangju-Naju. The effects have rippled through the Seoul metropolitan area, Gangwon, Gyeongnam, and Jeonnam, causing severe supply disruptions to thousands of CU convenience stores. The union claims that, after five formal requests for talks between January and March 2026, BGF Retail refused to negotiate directly, instead communicating only through logistics contractors. In response, the union alleges, BGF Retail retaliated by cutting shipment volumes, halving deliveries at some centers and slashing drivers’ incomes.
“After we requested negotiations, our shipment volumes were cut in half, and now we’re facing damage claims worth tens of millions of won for refusing deliveries,” said Yoon Jung-wook, the head of the CU branch of the Cargo Solidarity Union, in an interview with Maeil Labor News. “We had no choice but to strike because it became impossible to cover vehicle payments and maintenance costs.”
The situation has only grown more volatile. On the day of the fatal accident, about 40 union members were blocking the center’s entrance, while police had deployed some 220 officers to clear the way for substitute drivers. Tensions boiled over again just hours later, when a union van rammed police barricades, injuring a police officer. Two union members were arrested at the scene. According to Hankyung, this was not the first confrontation at the Jinju center; a day earlier, a union member was detained for wielding a weapon during a protest, and another was arrested for obstructing police.
The labor action has brought logistics to a near standstill at key facilities. The BGF Food factory in Jincheon has been blockaded since April 17, forcing the disposal of ready-to-eat foods like kimbap, lunchboxes, and sandwiches due to expiration. Over 3,000 CU stores in the capital region and southern Gyeonggi have seen their shelves emptied, with franchisees reporting mounting losses. The CU Franchisee Association, representing store owners, held a press conference in Seoul on April 16, pleading for swift resolution and the protection of their livelihoods. “Franchisees, who have no say in logistics or labor negotiations, are bearing the brunt of the damage,” the association stated.
At the heart of the dispute is a complex, multi-tiered contracting system. CU’s parent company, BGF Retail, contracts with BGF Logis, which in turn subcontracts to regional transport firms. Drivers themselves are classified as freelancers, contracted individually by these transport companies. The union argues that only BGF Retail has the real authority to improve pay and working conditions, pointing out that other major convenience store chains, such as GS25 and 7-Eleven, have reached direct agreements with their logistics workers. “Without direct talks with the original contractor, we can’t address key issues like holidays and freight rates,” said Lee Ji-yeon, a union official. “We’re the only ones still doing unpaid sorting work, while drivers for other brands have seen improvements.”
BGF Retail, for its part, maintains that it is not the appropriate negotiating partner. “We handle disputes through joint consultations between logistics centers and transport companies,” a BGF Logis representative told Maeil Labor News, denying claims of deliberate shipment reductions or forcing drivers to cover substitute delivery costs. The company has sought police assistance to restore supply lines, warning that the prolonged strike threatens the survival of small business owners who operate CU franchises.
The legal backdrop to this standoff is South Korea’s so-called “Yellow Envelope Act,” a recent revision to the Trade Union Act that expands the bargaining rights of subcontracted and platform workers. The union cites this law as the basis for demanding direct negotiations and holding BGF Retail accountable for labor conditions. The company, however, argues that the three-party contract structure makes direct talks inappropriate and insists it is not legally responsible for the drivers’ employment terms.
Meanwhile, the financial toll mounts. Since March 17, at least 11 union members have received damage claims totaling nearly 200 million KRW (about $150,000) for refusing deliveries, according to union sources. Perishable goods have spoiled, and store owners are losing not only sales but also regular customers who find empty shelves and go elsewhere. “It’s not just a short-term loss,” said one franchisee. “If customers stop coming, we may never get them back.”
The strike has rapidly become a flashpoint for the entire convenience store industry. As Maeil Labor News and Hankyung note, this is the first time logistics workers in the sector have exercised their right to strike, and the outcome could set new standards for wages and working conditions across the industry. Some observers warn that if the deadlock continues, it could trigger similar actions at other chains, upending South Korea’s vaunted convenience store model.
For now, the two sides remain locked in a bitter stalemate. The union, galvanized by the death of a colleague, has declared a total mobilization and vowed to escalate its actions unless BGF Retail offers an apology and concrete measures to prevent further tragedies. Police have ramped up their presence, bracing for more clashes as protests spread to other regions. BGF Logis has yet to issue a formal statement on the fatal accident, saying only that it is cooperating with the ongoing investigation.
As the shelves at thousands of CU stores remain bare, and both workers and franchisees count their losses, South Korea watches anxiously to see whether this labor conflict will prompt overdue reforms—or deepen the divisions at the heart of its retail economy.