Chairperson Ju Biung-ghi said at the Special Committee on Budget & Accounts' comprehensive policy inquiry on the 26th that the commission would file a criminal complaint over Coupang's refusal to allow an on-site inspection related to alleged violations of the Large-Scale Distribution Industry Act.
The Korea Fair Trade Commission (FTC) visited Coupang's headquarters on the 19th to investigate allegations that Coupang shifted the expense of issuing discount coupons onto suppliers. But Coupang said it had not been notified in advance of the on-site inspection and reportedly refused the inspection for three straight days through the 21st.
Coupang claimed that under the Framework Act on Administrative Investigations, the party subject to an on-site inspection must be notified in writing at least seven days before the inspection begins, but it had not been notified. It then filed a lawsuit on the 21st seeking to cancel the Korea Fair Trade Commission (FTC)'s decision and disposition on the on-site inspection and requested a stay of execution. The Korea Fair Trade Commission (FTC) returned to Coupang on the 24th, confirmed the filing of the lawsuit, and withdrew.
At the comprehensive policy inquiry at the National Assembly that day, Democratic Party of Korea lawmaker Song Jae-bong told the Chairperson that it was an attempt to neutralize the state's public authority and asked what response measures were in place, saying a tough response was needed. The Chairperson said the commission would respond to the lawsuit filed by Coupang and, independently of that, would file a complaint over Coupang's refusal to comply with the inspection.
When Song asked, you will file a criminal complaint, right?, the Chairperson said, That's right. When Song then asked whether there was any way to impose fines or penalties directly in addition to that, the Chairperson said, We can file the complaint and impose fines.
However, the Large-Scale Distribution Industry Act has no provision for criminal complaints over refusal to comply with or interference in an inspection. Only fines of up to 200 million won can be imposed. Under the Monopoly Regulation and Fair Trade Act, a person who refuses, obstructs, or evades an inspection can face up to three years in prison or a fine of up to 200 million won through a criminal complaint.
The Chairperson said, Under current law, our investigative authority can be exercised without prior control, and we have consistently enforced it. We also have past experience exercising our investigative authority over Coupang using the same large-scale law.
The Korea Fair Trade Commission (FTC) said the prior notification obligation under the Framework Act on Administrative Investigations does not apply to on-site inspections for violations of the Large-Scale Distribution Industry Act. It also said that under the Framework Act on Administrative Investigations, if it is determined that prior notification would prevent achieving the purpose of the administrative investigation—such as by enabling destruction of evidence—prior notification need not be given, and that Coupang's on-site inspection fell under such a case.