Lee Jun-seok: "After Direct Pitch Confusion, Now PB Regulation? Don't Make Anachronistic Judgments"

Fair Trade Commission Investigates Coupang PB Preferential Treatment Allegations
"Why Target Direct Purchase and PB That Help Curb Prices?"

Lee Jun-seok, the elected leader of the Reform New Party, commented on the Fair Trade Commission's investigation into allegations of preferential treatment for Coupang's private brand (PB) products, saying, "I hope they do not make an anachronistic policy decision."

On the afternoon of the 24th, Lee stated on social media, "In the past few days, the government tried to regulate overseas direct purchases but showed signs of withdrawing after controversy arose, causing great confusion. However, this time, they are trying to take action again by moving to regulate PB products." He continued, "In a situation where many people are suffering from rising prices, seeing them target direct purchases or PB products that could help curb inflation makes me really wonder who is setting the direction of policy."

Lee Jun-seok, elected representative of the Reform New Party. [Image source=Yonhap News]

Lee’s remarks appear to link the recent government announcement to ban overseas direct purchases (direct buying) ? which was withdrawn after three days ? with the Fair Trade Commission’s current investigation into Coupang’s alleged preferential treatment of PB products. The Fair Trade Commission believes Coupang manipulated algorithms to display PB products at the top and plans to hold two plenary meetings on May 29 and June 5 to decide on possible sanctions. However, Coupang claims there has been no damage caused by preferential treatment of PB products and argues that it has rather contributed to lowering shopping basket prices. PB products are private brand items developed by retailers in cooperation with manufacturers, allowing for reduced marketing and distribution costs, which results in lower prices.

Lee said, "There are many cases where distribution companies source products from small and medium manufacturers through PBs," adding, "Consumers are currently comparing prices to find products even a few hundred won cheaper, so I hope they do not make an anachronistic policy decision." He also added, "If the president was unaware of this issue, I ask that he be properly briefed to prevent any gaps in price management."