South Korea’s Fair Trade Commission has given the green light to Coupang and its affiliate’s voluntary corrective actions totaling 3 billion won ($1.94 million) for unfair dealings with subcontractors. The companies, Coupang and Coupang Private Label Brands, were found to have provided incomplete contracts to 314 subcontractors and reduced prices for 94 subcontractors through unauthorized discount promotions since 2022. In response, Coupang proposed corrective steps last year, exceeding the expected fines of 600 million won to 1.1 billion won.
Coupang’s proposed measures include allocating 1.05 billion won to support subcontractors in product development, manufacturing, and logistics costs. Additionally, 1 billion won will be used for advertising private-label products on its platform, with 450 million won designated for assisting subcontractors in promoting products at offline events. Another 400 million won will be allocated for consulting services and international market expansion. Coupang also plans to engage in regular meetings with subcontractors to enhance quality and workplace safety cooperation.
The Fair Trade Commission recently turned down another set of voluntary corrective actions by Coupang in a separate case involving allegations of market dominance abuse concerning restaurant owners and consumers, valued at 60 billion won. Analysts suggest the rejection was due to the broader impact of Coupang’s violations on a larger number of businesses and consumers.
