On the 25th, it was learned that the Korea Fair Trade Commission withdrew after a recent on-site inspection aimed at checking whether Coupang shifted discount expense to its partners, following Coupang's pushback. This is reportedly the first time an on-site inspection by the Korea Fair Trade Commission (FTC) has not proceeded due to refusal by those surveyed.
According to the industry, on the 19th the Korea Fair Trade Commission (FTC) sent a Researcher to Coupang's headquarters in Gwangjin-gu, Seoul, to verify allegations that Coupang passed the expense of "price-matched coupons" on to suppliers. A price-matched coupon is automatically issued when a specific product sold on Coupang is more expensive than on rival shopping malls such as Naver. The Korea Fair Trade Commission (FTC) planned to investigate whether Coupang unfairly made suppliers bear the cost of the coupons in this process.
However, Coupang pushed back, saying it had not been notified in advance of the investigation by the Korea Fair Trade Commission (FTC). Under the Framework Act on Administrative Investigations, when an administrative agency conducts an on-site inspection, it must, in principle, notify the person subject to the investigation in writing at least seven days before the start of the investigation. On that basis, Coupang refused the investigation for three consecutive days and on the 21st filed a request with the court to suspend the on-site inspection.
The Korea Fair Trade Commission (FTC) maintains that this on-site inspection falls under an exception to the advance notice obligation. The Framework Act on Administrative Investigations stipulates that if it is determined that the purpose of the investigation cannot be achieved due to destruction of evidence, the purpose may be communicated orally at the start of the investigation. The Korea Fair Trade Commission (FTC) has generally conducted on-site inspections without prior notice out of concern that the party under investigation might hide evidence if the schedule were known in advance.
If the court dismisses the request to suspend the on-site inspection, the Korea Fair Trade Commission (FTC) plans to immediately impose fines on Coupang for refusing the investigation. Under the Act on Fair Transactions in Large Franchise and Retail Business, if a large-scale retailer like Coupang refuses or obstructs an on-site inspection by the Korea Fair Trade Commission (FTC) without justifiable reason, it may face fines of up to 200 million won. An official at the Korea Fair Trade Commission (FTC) said, "The result on the request to suspend execution will come out within 1–2 weeks."