Coupang wins FTC approval for ₩3 billion subcontractor relief plan
Synopsis
Coupang agreed to spend ₩3 billion — nearly triple the expected fine — to settle a South Korean FTC probe into unfair subcontractor contracts. The same week, regulators rejected a separate ₩60 billion proposal from the company over alleged market dominance abuse, underscoring how differently Seoul's competition watchdog is treating the two cases.
Key Takeaways
South Korea's FTC approved Coupang and CPLB's voluntary corrective measures worth 3 billion won ($1.94 million) on 23 June .
The probe found 314 subcontractors received contracts missing legally required information, and 94 subcontractors faced unauthorised price cuts via discount promotions since 2022 .
The settlement amount is significantly above anticipated fines of 600 million to 1.1 billion won .
Funds are split across product development support ( ₩1.05 billion ), advertising ( ₩1 billion ), offline exhibitions ( ₩450 million ), and consulting/overseas development ( ₩400 million ).
The FTC separately rejected Coupang's ₩60 billion corrective proposal in a distinct case involving alleged abuse of market dominance over restaurant owners and consumers.
South Korea's Fair Trade Commission (FTC) on Tuesday, 23 June approved voluntary corrective measures worth 3 billion won ($1.94 million) proposed by e-commerce giant Coupang and its private-label subsidiary Coupang Private Label Brands (CPLB), resolving a probe into unfair dealings with subcontractors. The consent decree allows both companies to close the case without further legal proceedings.
What the FTC Investigation Found
Regulators found that Coupang and CPLB had provided 314 subcontractors with contracts that omitted legally required information. Additionally, the companies had lowered supply prices for 94 subcontractors through discount promotions not stipulated in their agreements — practices that reportedly began in 2022.
Notably, the approved corrective package of 3 billion won substantially exceeds the anticipated fines of 600 million won to 1.1 billion won, signalling that Coupang opted for a more generous settlement to avoid protracted regulatory scrutiny.
How the ₩3 Billion Will Be Deployed
Coupang has broken the corrective fund into several targeted programmes. The largest allocation — 1.05 billion won — will support subcontractors' costs related to product development, manufacturing, and logistics. A further 1 billion won is earmarked for advertising private-label products on Coupang's website and mobile application, giving smaller suppliers direct promotional reach.
An additional 450 million won will help subcontractors promote private-label products at offline exhibitions, while 400 million won is set aside for consulting services and overseas market development. Coupang has also committed to holding regular meetings with subcontractors to discuss quality improvement and workplace safety cooperation.
A Separate Case Rejected
The FTC's approval comes alongside a notable contrast: just last week, the watchdog rejected a separate voluntary corrective proposal from Coupang worth 60 billion won. That case involves allegations that the company abused its market dominance over restaurant owners and consumers. Analysts suggest the rejection reflects the far larger scale of affected merchants and consumers in that matter, making a consent decree harder to justify on public-interest grounds.
What Happens Next
With the subcontractor case now resolved, Coupang faces continued regulatory pressure on the restaurant-owner dominance front. The outcome of that separate FTC review will be closely watched by industry observers, as it could set a precedent for how South Korea's competition authority handles platform-dominance cases at scale. Coupang's willingness to self-correct — and at a premium above anticipated fines — may inform its strategy in the pending matter.
Point of View
The contrast is instructive: consent decrees work when the harm is bounded, but fail when the affected population is too large for a settlement to credibly address. Coupang's dual-track exposure also illustrates the reputational risk of operating private-label businesses that compete directly with the suppliers they depend on — a tension Indian e-commerce platforms are navigating under the Competition Commission of India's evolving scrutiny.
NationPress
23 Jun 2026
Frequently Asked Questions
What did South Korea's FTC approve regarding Coupang?
The Fair Trade Commission approved a voluntary corrective package worth 3 billion won ($1.94 million) proposed by Coupang and its subsidiary Coupang Private Label Brands, resolving a probe into unfair subcontractor dealings without further legal proceedings.
What violations were found against Coupang and CPLB?
Regulators found that Coupang and CPLB provided 314 subcontractors with contracts missing legally required information, and lowered supply prices for 94 subcontractors through discount promotions not covered by their agreements, practices dating back to 2022.
Why is the ₩3 billion settlement significant?
The approved amount is substantially higher than the anticipated fines of 600 million to 1.1 billion won, suggesting Coupang chose to exceed regulatory expectations in order to resolve the matter via consent decree and avoid prolonged legal proceedings.
What is the separate FTC case that was rejected?
Last week, the FTC rejected a different voluntary corrective proposal from Coupang worth 60 billion won, related to allegations that the company abused its market dominance over restaurant owners and consumers. Analysts attribute the rejection to the far larger number of affected parties in that case.
How will Coupang's ₩3 billion corrective fund be used?
The fund is allocated across product development, manufacturing and logistics support (₩1.05 billion), advertising on Coupang's platform (₩1 billion), offline exhibition promotions (₩450 million), and consulting plus overseas market development (₩400 million).
