Park Dae-jun, the head of Coupang, on 14th addressed the company's alleged "gapjil controversy" over forcing advertisers, saying, "We have an internal ban on using advertising budgets and growth promotion funds (growth incentives). If it is confirmed that some employees engaged in such behavior, we will take stern action."
Park, who appeared as a witness at the Trade. Industry Energy. SMEs. and Startups Committee's audit that day, responded to Rep. Park Sang-ung of the People Power Party pointing out that "Coupang is forcing its marketplace sellers to advertise, implying they could face disadvantages if they do not," by saying the above.
There was also criticism that Coupang's settlement cycle for suppliers is excessively long. Park said, "Naver Shopping settles in up to nine days after purchase, and Gongyoung Home Shopping settles within 10 days, but Coupang takes 60–63 days," and asked rhetorically, "Coupang says it delays settlement to prepare funds in case consumers request refunds, but how many refund requests are actually made 30 or 60 days after the product is sold, out of the total?"
In response, Park said, "We know the difficulties of marketplace businesses. We are introducing various programs to shorten the settlement period, and some have already been applied and are in effect." He added, "Because Coupang is based on a direct-purchase structure rather than a brokerage-type transaction, the settlement cycle may be somewhat longer."
Park also appeared as a witness at the National Assembly's Science. ICT. Broadcasting. and Communications Committee audit that day, in addition to the industry committee. When Rep. Cho In-chul of the Democratic Party of Korea pointed out that so-called "ad hijacking," in which users are automatically linked to Coupang through Coupang's marketing program "Coupang Partners" even without a click, is spreading, Park said, "I understand that ad hijacking has increased a lot recently. We have toughened sanctions so that even on the first detection, we suspend revenue payments for 14 days."
Park went on to say, "As illegal ad types continue to evolve, in cases where the technical determination is ambiguous, we also provide an opportunity for explanation," and added, "If the types become clearer, we will consider measures such as deleting the account, as you suggested."