[2021 National Audit] CEO Park Dae-jun "Coupang to Prevent Recurrence of Violations of the Mobile Phone Distribution Act"

Assemblyman Jeong Pil-mo Points Out Coupang's Violation of Device Distribution Law
Public Subsidies Exceed Guidelines

Park Dae-jun, head of Coupang's New Business Division, stated on the 5th at the National Assembly Science, Technology, Information and Broadcasting and Communications Committee (STIBC) audit of the Korea Communications Commission, "We will take measures to prevent violations of the law from recurring." The photo was taken at the STIBC audit on the 1st. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Cha Min-young] Park Dae-jun, head of Coupang's New Business Division, stated on the 5th at the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee (STIBC) audit of the Korea Communications Commission, "We will take measures to prevent the recurrence of legal violations."

Park Dae-jun, who appeared as a witness before the STIBC that day, responded this way to a question from Democratic Party lawmaker Jeong Pil-mo regarding Coupang's violation of the Act on the Improvement of Distribution Structure of Mobile Communication Terminal Devices (Device Distribution Act).

Lawmaker Jeong Pil-mo pointed out, "Coupang operates as an agency business under the Device Distribution Act, but it failed to comply with the publicly announced subsidy items specified in the Korea Communications Commission's guidelines," adding, "Including the discount rate and card discounts, they violated the guidelines." He also criticized Coupang for not actively cooperating with the Korea Communications Commission's on-site investigation.

Under current law, additional subsidies that distribution stores can provide when selling mobile phones are limited to within 15% of the subsidy publicly announced by the telecommunications company.

Lawmaker Jeong also emphasized, "You should clearly recognize the existing guideline violations and, if necessary, withdraw from telecommunications agency stores," calling it "an infringement on local small businesses."

Park responded, "The Korea Communications Commission is currently investigating the mentioned business, and we are cooperating with the necessary investigations," adding, "I agree with your remarks. We will take measures to prevent the recurrence of legal violations."