[2025 Audit] Coupang Faces Yeonryukdo Delivery Fee Controversy... CEO Daejun Park "Promises Improvement"

Appears as Witness at National Assembly Audit
"In Talks to Achieve Results Comparable to Competitors"

Daejun Park, CEO of Coupang, has announced plans to improve the delivery fee policy that imposed additional charges on customers living on islands connected by bridges (Yeonryukdo).

Daejun Park, CEO of Coupang. Photo by Yonhap News

On October 15, Park appeared as a witness at the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee's audit of the Ministry of Oceans and Fisheries. In response to a question from Assemblyman Seo Samseok of the Democratic Party of Korea, who raised the issue, Park stated that Coupang is reviewing ways to address the matter.

Previously, on October 7, the Korea Fair Trade Commission announced that it had investigated the imposition of additional delivery fees for Yeonryukdo and found that 13 online shopping malls were charging such fees, instructing them to rectify the practice.

According to the Fair Trade Commission's investigation, additional delivery fees of around 3,000 won were imposed because Yeonryukdo, which shares the same postal code as nearby 'island' areas, was automatically classified as a remote island region by the system. Under the current Electronic Commerce Act, if a courier company continues to display and notify additional delivery costs, such as ferry charges, even after a bridge has been opened to the island and those costs are no longer incurred, it may be considered a deceptive practice against consumers.

As a result, 12 companies-including Lotte Shopping, Kakao, SSG.com, GS Retail, CJ ENM, Hyundai Home Shopping, Woori Home Shopping, Woowa Brothers, Musinsa, NS Shopping, Bucketplace, and CJ Olive Young (Dplot)-have completed the required corrections.

Park stated, "I became aware of this issue through related news reports," adding, "System development will be completed by the end of this month, and we expect to provide the improved service in early November." Previously, after the Fair Trade Commission's investigation results were released, Coupang had announced its intention to improve the system within this year. Park's remarks at the audit provided a more specific timeline.

Park also responded that Coupang is seeking ways to improve the relatively long settlement period and high commission rate for agricultural, livestock, and fishery products compared to competitors. Assemblyman Seo pointed out, "Farmers and fishermen prefer to join Coupang because of its fast delivery and logistics efficiency, but while competitor Naver charges a 3% commission and settles payments within three days, Coupang imposes a 10.6% commission and a settlement period of 60 days, increasing the burden on small-scale farmers and fishermen."

In response, Park said, "Since commissions are part of product pricing, it is difficult to give a direct answer." However, he added, "We already have a program in place that allows settlement the day after purchase confirmation for intermediary transactions, excluding direct purchases, at a 4% commission rate." He continued, "We are also in discussions with financial institutions to further improve the settlement period and will ensure that our service is as competitive as those of other companies."