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What happened with KOA Modas and what is the lesson for an investor?

According to the cited documentsSetting up a plant

Workers affected by the KOA Modas closure

>750

Feb 2025Business & Human Rights Resource Centre

KOA Modas (Korean capital) closed in February 2025 without paying severance to more than 750 workers; an investigation by the Worker Rights Consortium documented forced overtime, abuse and the suppression of union activity. The workers recovered about US$6 M: Sae-A Trading, the buyer acting on Target's behalf, contributed US$3.3 M as a "humanitarian contribution" and Target ended the relationship. The context is a strong historical presence of Korean capital in Guatemalan apparel (PRONACOM); CNN's 2025 report documents the model and its labor tensions.

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  • Amount recovered by the workers~US$6 M2025BJournal
  • Sae-A Trading contributionUS$3.3 MHumanitarian contribution2025CNN
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Sources

  • Business & Human Rights Resource Centre

    Labour rights violations in Korean-owned factories in Guatemala

    • Workers affected by the KOA Modas closure
    business-humanrights.orgAccessed Aug 19, 2026Go to the source
  • CNN

    CNN en Español, 18-oct-2025, maquilas en Guatemala

    • Sae-A Trading contribution
    cnnespanol.cnn.comAccessed Aug 19, 2026Go to the source
  • BJournal

    Guatemala garment workers win $6M

    • Amount recovered by the workers
    bjournal.netAccessed Aug 19, 2026Go to the source