[Alpha Biz= Kim Jisun] Seoul, August 31, 2025 — AliExpress and its affiliates have been sanctioned by the Korea Fair Trade Commission (KFTC) for exaggerating product discounts by presenting false reference prices on their cross-border e-commerce platform.
The KFTC announced on August 31 that it imposed corrective orders and an administrative fine of KRW 2 million on Alibaba.com Singapore E-Commerce Private Limited (AliExpress Singapore), operator of AliExpress, for violating the E-Commerce Act. Two affiliated companies were also fined a combined KRW 2.093 billion for violating the Act on Fair Labeling and Advertising.
According to the regulator, affiliates OceanSky Internet Information Technology Pte. Ltd. (OceanSky) and MICTW Supply Chain Services Singapore Pte. Ltd. (MICTW) listed prices that had never been applied in actual sales as the “original price” of items. They then advertised discounts by comparing those fictitious prices to the actual sales price, thereby overstating the discount rate.
Between June 2023 and October 2024, OceanSky sold 2,422 such items, while MICTW sold 5,000 items under similar misleading practices. The regulator concluded these actions misled consumers by exaggerating the perceived economic benefit of purchases and distorting rational buying decisions.
In addition, AliExpress Singapore failed to display essential business identity information — including company name, representative’s name, and address — and terms of service on the platform’s main page, in violation of the E-Commerce Act. AliExpress Korea, which operates contracts with local sellers under the AliExpress “K-Venue” sales channel, was also cited for the same omission.
The KFTC stated: “These actions induced consumer misunderstanding regarding pre-discount prices and discount rates, leading consumers to believe they were receiving greater benefits than they actually were.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
