Seoul, August 27, 2026 (Yes Punjab News)
An investigation by South Korea’s Fair Trade Commission (FTC) into the local arm of US-listed e-commerce company Coupang has hit a roadblock after the company refused to cooperate with recent attempts by investigators to conduct on-site inspections, citing procedural concerns.
According to industry sources, the FTC had planned inspections of Coupang’s South Korean unit from last week through this week over allegations that the company violated the Act on Fair Transactions in Large Retail Business.
The investigation centres on suspicions that Coupang shifted the costs associated with discounts onto its suppliers, Yonhap News Agency reported.
Coupang declined to allow the inspections, arguing that it had not received the advance notification required under the Framework Act on Administrative Investigations.
“The requirement to provide seven days’ advance notice of an on-site inspection is a legal procedure designed to protect the rights and interests of those subject to an investigation,” the company said in a statement earlier this week.
“Coupang plans to seek a court ruling over the FTC’s failure to comply with such procedures,” it added.
The FTC reportedly made four attempts to carry out the inspections. Coupang subsequently filed a lawsuit seeking to overturn the commission’s decision to conduct the on-site investigation. The FTC withdrew from the site on Monday after learning about the lawsuit.
The dispute centres on whether the seven-day notification requirement applies in this case. While the Framework Act on Administrative Investigations exempts investigations into alleged violations of eight laws under the FTC’s jurisdiction from the advance-notice requirement, Coupang contends that the Act on Fair Transactions in Large Retail Business is not among those exemptions.
The two laws were enacted at different times. The Framework Act came into force in 2007, while the Act on Fair Transactions in Large Retail Business was enacted in 2011.
Industry watchers said the FTC maintains that the investigation falls within an exception under the Framework Act.
A court is scheduled to hear arguments from both sides next Wednesday before deciding whether to formally suspend the inspection.
FOLLOW NOW
