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Photo = Coupang |
[Alpha Biz= Paul Lee] Seoul, October 11 — Coupang announced it will distribute ₩3 billion worth of discount coupons to consumers and provide over ₩10 billion in financial support to suppliers involved in its private brand (PB) products, as part of a settlement proposal currently under review by the Korea Fair Trade Commission (KFTC).
According to government sources, the KFTC on Friday disclosed a provisional consent decree outlining these measures, following allegations that Coupang and its PB subsidiary CPLB violated the Subcontracting Act. The commission will collect stakeholder feedback until November 19 before deciding whether to approve the proposal.
Under Korea’s consent decree system, companies under investigation may propose corrective measures to resolve disputes without an official finding of wrongdoing—similar to a civil settlement process.
Coupang was accused of unilaterally reducing supply prices for 94 PB product suppliers by conducting unagreed promotional events and of issuing unsigned order forms, which violates subcontracting transparency requirements.
Opting not to contest the charges, Coupang submitted a request in March to enter the consent decree process, later working with the KFTC to finalize the proposed remedies.
As part of its ₩30 billion supplier support plan, Coupang pledged:
₩10.5 billion to cover suppliers’ costs for product development, manufacturing, and delivery,
₩3 billion in consumer discount coupons for PB items, and
₩7 billion for advertising and online promotions.
In addition, CPLB will invest ₩4.5 billion to help suppliers promote their products through offline trade fairs and exhibitions.
Coupang also committed to holding regular consultation meetings with suppliers to address grievances and improve transaction practices. Future promotional events will require pre-agreed written consent, and all new PB orders will specify minimum production quantities and lead times in written agreements.
The KFTC will determine whether to approve the consent decree after completing its review next month.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
