Did Coupang Receive the Largest FTC Fine Among Korean Conglomerates in the Last Three Years?
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Synopsis
Coupang has made headlines as the South Korean e-commerce giant that faced the largest fines from the FTC in three years. Discover how this impacts the industry and what it means for consumer rights.
Key Takeaways
- Coupang received the largest FTC fine among South Korean conglomerates.
- The total fines for the top ten conglomerates reached 744.6 billion won.
- The fines were primarily due to violations of antitrust laws.
- Hyundai Department Store Group had the highest number of violations.
- The FTC is taking action against food delivery platforms for unfair practices.
Seoul, Oct 19 (NationPress) Coupang, a prominent player in South Korea's e-commerce sector, has been reported as the recipient of the highest fines from the Fair Trade Commission (FTC) among conglomerates during the last three years, according to a parliamentary report released on Sunday.
The report, which was prepared by the FTC and presented to Rep. Choo Kyung-ho of the main opposition People Power Party, reveals that Coupang faced fines totaling 162.8 billion won (approximately US$114.3 million) from the first half of 2022 to the first half of this year, as reported by the Yonhap news agency.
Last year, the FTC penalized the company for manipulating search algorithms to enhance the visibility of its private-label products and others available for direct purchase, referred to as the Coupang ranking.
Following Coupang, Hyundai Motor Group incurred 119.4 billion won in cumulative fines, while Harim Group, a poultry-processing firm, faced fines of 101.6 billion won, and SK Group was fined 64.5 billion won.
In total, the top ten conglomerates accumulated penalties amounting to 744.6 billion won over the three-year timeframe.
The Hyundai Department Store Group recorded the highest number of infractions, totaling 38, primarily due to various collusion cases involving its furniture subsidiary, Hyundai Livart Furniture.
Hanssem Co. had 33 violations, followed by SK Group with 31 and Enex Co. with 28.
Overall, the top 10 conglomerates committed 243 violations of antitrust laws during this period.
Meanwhile, the antitrust regulator announced last week that it will soon initiate sanctions against two major food delivery platforms due to alleged unfair market activities, as these companies did not voluntarily provide sufficient corrective measures.
This decision follows the lack of adequate co-prosperity or corrective plans submitted by Woowa Brothers Corp., which operates Baedal Minjok (also known as Baemin), and Coupang Eats, concerning various unfair contract clauses amid ongoing investigations, as stated by the FTC.
“The investigations into violations like forced bundle sales are nearly finished,” mentioned Kim Moon-sik, a senior official at the FTC, indicating that the case will soon be presented to a full commission meeting.
Point of View
It's crucial to report that the actions taken by the Fair Trade Commission against Coupang should highlight the importance of fair competition in the market. Although such penalties can seem severe, they are essential in ensuring that consumer rights are upheld and that companies operate within the law. This case not only underscores the FTC's dedication to enforcing antitrust regulations but also sets a precedent for other conglomerates in South Korea.
NationPress
19/10/2025
Frequently Asked Questions
What is the total amount Coupang was fined?
Coupang was fined a total of 162.8 billion won (approximately US$114.3 million) by the Fair Trade Commission.
Why was Coupang fined?
Coupang was fined for manipulating search algorithms to enhance the visibility of its products, affecting fair competition.
How do Coupang's fines compare to other companies?
Coupang's fines are the highest among Korean conglomerates in the past three years, followed by Hyundai Motor Group and Harim Group.
What actions is the FTC taking against food delivery platforms?
The FTC is initiating sanctions against two major food delivery platforms for alleged unfair market practices.
How many violations did the top ten conglomerates commit?
The top ten conglomerates violated antitrust laws a total of 243 times during the reported period.
