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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Coupang Inc., South Korea’s leading e-commerce platform, is under investigation by the Korea Fair Trade Commission (KFTC) over allegations that it bundled its food delivery service, Coupang Eats, with its paid membership program, Wow Membership.
A key focus of the inquiry is whether Coupang holds a dominant market position in the online direct procurement market. Under South Korean antitrust law, a company deemed “market-dominant” can face fines of up to 6% of relevant sales, higher than standard penalties for unfair trade practices. A market-dominant status is typically assigned when a single company holds over 50% market share, or the top three companies collectively exceed 75%.
Last month, KFTC Chair Joo Byung-ki referenced Coupang’s market share during a parliamentary hearing, signaling that the commission intends to scrutinize the case closely.
In addition to the bundling allegations, the KFTC is reviewing claims that Coupang shifted losses from low-price promotions onto suppliers and engaged in misleading advertising regarding Wow Membership discounts. The investigation is also monitoring responses to recent personal data breaches, and the commission is reportedly considering designating Coupang Chairman Kim Beom-seok as the company’s “identical person” under corporate law, potentially opening the door to business suspension measures.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
