This article was published on the ChosunBiz RM Report website at 10:53 a.m. on Oct. 21, 2025.
The Fair Trade Commission has launched an on-site investigation into Coway, a home appliance rental company. The probe follows allegations of unfair practices in transactions with agencies, including forcing sales targets and passing on promotional costs. The commission is said to be examining whether the agency transaction law was violated.
According to the industry on the 21st, the commission conducted an on-site investigation last month at Coway's headquarters in Guro District, Seoul. The investigation reportedly focused on allegations that Coway imposed excessive sales targets on agencies and, if they failed to meet them, withheld sales incentives, using its superior position to disadvantage them.
The commission is said to be investigating whether Coway demanded the submission of confidential information such as sales and advertising records from agencies, and whether it shifted promotional costs tied to customer discounts onto them. It is also looking into whether agencies were required to handle tasks not stipulated in contracts, such as changing installation schedules or checking customer information, without compensation. Some agencies were found to have had contracts terminated or renewals delayed, and the commission is reviewing whether retaliatory measures occurred in the process.
The investigation is being conducted to review the transaction structure between headquarters and agencies, with a key issue being whether the "Act on Fairness in Agency Transactions" (agency transaction law) was violated. Some matters are reportedly being reviewed separately by the Personal Information Protection Commission.
Since being acquired by Netmarble Group in 2020, Coway has pushed to restructure its agency network, during which the abolition of master distributors and a shift to direct management were reportedly discussed internally. The commission plans to consider the level of sanctions, including corrective orders or a penalty surcharge, depending on the outcome of the investigation.
An official at the commission said, "We cannot confirm whether an investigation is underway or provide specific details."