Prosecutors Conduct Second Day of Search and Seizure at Coupang Headquarters Over Alleged Algorithm Manipulation Charges

The prosecution has launched a compulsory investigation into Coupang on suspicion of algorithm manipulation.

On the 12th, the Seoul Eastern District Prosecutors' Office announced that it has been conducting a two-day search and seizure at Coupang's headquarters in Songpa-gu, Seoul, since the morning of the 11th on charges of violating the Fair Trade Act.

Coupang is suspected of manipulating algorithms to expose about 60,000 products, including its private brand (PB) products and directly purchased items, at the top of search rankings. This has raised allegations that Coupang unfairly increased the exposure frequency of its own products in the Coupang rankings.

Earlier, the Fair Trade Commission judged that Coupang manipulated search rankings to promote PB product sales and mobilized employees to write positive purchase reviews and increase star ratings. As a result, it imposed fines in June and reported the case to the prosecution.

A prosecution official explained, "Following the Fair Trade Commission's report, we have initiated a compulsory investigation to secure related materials."