The Korea Fair Trade Commission (KFTC) announced on the 26th that Coupang has been fined approximately 2.2 billion Won for violating several provisions of the Large-Scale Distribution Business Act. The KFTC indicated that the dominant player in the online shopping market, Coupang, has been forcing the sacrifice of its suppliers in order to maintain its profit margins. The commission highlighted the shifting of risks and costs typically borne by the company onto the suppliers as a primary concern, vowing to closely monitor such unfair practices and impose strict penalties for violations.

Coupang's specific violations were categorized into four main areas. From January 2020 to October 2022, Coupang established and monitored target profit margins that suppliers were required to meet. When suppliers failed to meet these targets, Coupang demanded reductions in supply prices, violating fair trade practices. Additionally, the KFTC found that during the same period, Coupang imposed various fees on suppliers when their profit margins did not align with expectations, such as advertising costs and fees for a special promotional program, further exacerbating pressure on suppliers by threatening to restrict or cease product orders as leverage.

Moreover, it was revealed that between October 2021 and June 2024, Coupang delayed payments to suppliers in over 50,000 transactions, ranging from 1 day to as much as 233 days beyond the legal payment deadline, amounting to over 280 billion Won. The company also failed to pay interest on delayed payments around 850 million Won, indicating a pattern of financial mismanagement and undue pressure on suppliers. This situation raises significant concerns about the competitive practices within the online retail sector in Korea, emphasizing the need for stronger regulations and oversight to protect suppliers from such dominant market players.