As some U.S. investors raise issues with the Korean government's probe into Coupang, the Korea Fair Trade Commission's investigation of Coupang has entered its third week. It is becoming longer than the roughly two-week duration initially expected.
According to the industry on the 25th, the Korea Fair Trade Commission (FTC) plans to continue the on-site investigation that began around the 13th at Coupang's headquarters in Songpa-gu, Seoul, for some time after the 26th.
The investigation involves three bureaus—market surveillance, conglomerate surveillance, and merger review—with more than 30 personnel deployed, and is accompanied by digital evidence collection by forensic experts. The Korea Fair Trade Commission (FTC) plans to secure evidence in accordance with procedures, taking into account the possibility of future administrative litigation.
The Korea Fair Trade Commission (FTC) is currently looking into allegations that Coupang converted popular products from marketplace sellers into its own private label (PB) products or forced direct purchases, tied Coupang Eats and Coupang Play to its Wow membership as a form of bundling, and compelled marketplace sellers to grant most-favored treatment.
The Korea Fair Trade Commission (FTC) is also accelerating the collection of materials to determine whether to designate Kim Beom-suk as Coupang's controlling individual. Currently, Coupang has been granted an exception and a corporation is designated as the controlling entity. Whether to designate Kim as the controlling individual will be further reviewed and announced in May.
Meanwhile, Coupang's U.S. investors, Greenoaks and Altimeter, asked the Office of the U.S. Trade Representative (USTR) for an investigation and trade remedies, taking issue with the Korean government's actions. They also indicated an intention to initiate investor-state dispute settlement (ISDS) arbitration against the Korean government.
In response, the Korea Fair Trade Commission (FTC) said it will proceed with the investigation and adjudication in accordance with the law and principles, regardless of overseas controversy.