Fair Trade Commission Delivers Decision Document to Coupang...Final Fine of 162.8 Billion Won

Delivery of Resolution after Fair Trade Commission Plenary Meeting Agreement
Recent Related Sales Increase by 22.8 Billion KRW

Coupang, with 14 million paid members, has been finally fined 168.2 billion KRW by the Fair Trade Commission for manipulating search rankings and deceiving consumers.

According to related government departments on the 7th, the Fair Trade Commission's Adjudication Management Office sent a decision letter to Coupang regarding its violation of the Monopoly Regulation and Fair Trade Act (Fair Trade Act).

The respondents specified in the decision letter are Coupang and its subsidiary CPLB Corporation, with a final fine amounting to 162.8 billion KRW. This is an increase of 22.8 billion KRW from the previously announced fine of 140 billion KRW in June.

This increase is due to the addition of related sales revenue from about 11 months, from August last year to June this year, within the entire calculation period from February 2019, when the illegal acts were confirmed, to the conclusion of the review.

Along with the fine imposition order, the Fair Trade Commission included a corrective order in the decision letter, instructing Coupang not to engage in illegal activities such as algorithm manipulation and posting reviews using employees in the future.

According to the Fair Trade Commission, Coupang has artificially adjusted the 'Coupang Ranking' of its own products, including private brand (PB) and directly purchased products, by manipulating the search ranking algorithm and mobilizing 2,297 employees to write purchase reviews for at least five years since 2019.

Coupang has previously denied all allegations raised by the Fair Trade Commission and announced that it would not hesitate to take any legal actions such as administrative lawsuits and injunction applications. According to the Fair Trade Act, the effect of the disposition takes place from the time the decision letter is delivered to the respondent, Coupang.

An industry insider said, "(After receiving the decision letter,) Coupang may review the details and take necessary legal actions such as administrative lawsuits and injunction applications," adding, "The dispute between the Fair Trade Commission and Coupang is expected to be finally resolved in court."