On Dec. 12, a Coupang delivery truck is parked in a parking lot in downtown Seoul. /Courtesy of News1

This article was published on the ChosunBiz RM Report site on March 27, 2025, at 4:41 p.m.

The Fair Trade Commission recently confirmed on the 27th that it is investigating the direct delivery practices of online and offline retailers such as Coupang, Kurly, Emart, and Homeplus, which are frequently used in the daily lives of citizens, and discussing autonomous improvement measures.

According to industry sources, the Fair Trade Commission's Knowledge Industry Surveillance Division has recently begun investigating the direct delivery practices of online and offline retailers such as Coupang, Kurly, Emart, SSG.com, and Homeplus. These companies provide logistics services known as Rocket Delivery and Ssaetbyeol Delivery. Direct delivery allows retailers to be responsible for shipping, enabling faster delivery to customers after an order.

This is the first time the Fair Trade Commission is investigating the direct delivery practices of retailers. There is a consensus both inside and outside the industry that such investigations are likely to lead to future cases. If it is discovered during the investigation that they transacted with suppliers and partner companies under unfair conditions, there is a high possibility of violating relevant laws.

During the COVID-19 pandemic, direct delivery services epitomized by Coupang's "Rocket Delivery" gained popularity. Thanks to its speed of delivery, Coupang has been surpassing Emart, becoming the top retailer in terms of revenue since 2023. In response, other online and offline retailers are expanding their direct delivery services by enhancing delivery speeds.

Typically, online platform companies like Coupang and Kurly mix direct purchase and fulfillment services. In the case of Coupang, Rocket Delivery involves directly purchasing products and utilizing its own logistics centers for quick delivery. Some products like Rocket Growth are stored at logistics centers in advance and utilize fulfillment services provided by partner companies for delivery.

Accordingly, the direct delivery fee structure is divided into three types: consumer-burdened, where delivery costs are charged and may be waived depending on the order amount; seller-burdened, where partner companies pay logistics or platform fees, sharing delivery costs; and a mixed type where the platform, consumers, and sellers share the delivery costs.

The Fair Trade Commission's examination of direct delivery practices arises from the possibility that large retail platforms may exploit their superior positions to impose unfair conditions on partner companies. In the case of direct purchase, a dominant platform may drive down supply prices for partner companies under the pretext of entry. When using fulfillment services, additional costs such as storage fees and delivery charges increase the burden on partner companies.

The Fair Trade Commission is pushing for enhanced platform regulations through amendments to the Fair Trade Act. The aim is to prevent competition restrictions caused by abusive practices of dominant platform operators. A Fair Trade Commission official noted, "I cannot disclose opinions on ongoing matters."

An industry source stated, "As the dominance of platforms increases through delivery services, the platform can impose more favorable conditions on suppliers and sellers," adding that "this is the first time the Fair Trade Commission is examining the delivery services of retailers."