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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, South Korea — Korea’s top financial regulator sharply criticized Coupang for imposing interest rates of up to 18.9% on loans extended to its marketplace sellers, calling the practice a clear example of abusing market dominance.
During a National Assembly committee hearing on December 3, Financial Supervisory Service (FSS) Governor Lee Chan-jin responded to Democratic Party lawmaker Lee In-young’s questioning about Coupang’s lending practices. While other platforms offer invoice financing or early payment services at 4–5% annual interest, Coupang’s rates range from 8.9% to 18.9%, with the average reaching 14% as of October.
Governor Lee stated, “Given the cost structure, such interest rates cannot be justified. This is a typical case of exploiting a superior market position.” He added that the FSS had begun on-site inspections and would review Coupang Financial’s lending operations in detail.
The loan in question is the “Coupang Seller Growth Loan”, operated by Coupang’s affiliate, Coupang Financial. Lawmakers argue that Coupang is effectively running a high-interest lending business by leveraging sellers’ dependence on its platform.
Lee also raised concerns about potential insider trading involving the stock sales of Coupang executives. He said the FSS would consult with the U.S. Securities and Exchange Commission (SEC), noting that Coupang is listed on the Nasdaq and therefore outside the jurisdiction of Korean authorities.
Before Coupang reported its massive data breach to Korean regulators, CFO Gaurav Anand sold 75,350 shares on November 10, and former vice president Pranav Kolari sold 27,388 shares on November 17. The timing prompted questions about possible insider trading during a sensitive period.
Coupang responded that the reported trades were executed under a trading plan established on December 8 of last year, intended to meet certain tax obligations.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
