South Korea’s antitrust regulator, the Korea Fair Trade Commission (KFTC), imposed a 2.2 billion‑won ($1.55 million) fine on e‑commerce giant Coupang for pressuring suppliers to lower prices, absorb advertising costs, and delay payments to vendors.
The KFTC found that Coupang set gross‑margin targets that forced suppliers to cut prices or shoulder additional costs, including advertising fees that were not driven by supplier business needs. In addition, the regulator uncovered that Coupang delayed payments in more than 500,000 direct‑purchase transactions involving over 25,000 vendors, with total late payments amounting to roughly 281 billion won. Some payments were delayed by up to 233 days beyond the statutory 60‑day deadline, and the company failed to pay overdue interest, marking the first sanction under the payment‑deadline rule introduced in April 2021.
This fine represents the first regulatory penalty for these specific practices, underscoring the KFTC’s focus on Coupang’s dominant market position and its leverage over suppliers. The fine follows a history of regulatory scrutiny, including a 3.29 billion‑won penalty in August 2021 for similar violations, and comes amid a broader context of heightened regulatory attention after a data breach in November 2025 that exposed millions of users’ personal information.
Coupang has announced its intention to contest the fine, stating that it absorbs price fluctuations and has never forced suppliers to advertise or unfairly suspend orders. The company maintains that it does not impose additional costs on suppliers beyond normal business requirements.
The penalty could strain Coupang’s supplier relationships and may prompt the company to revise its procurement and payment policies to avoid further regulatory scrutiny. The fine also adds pressure as Coupang prepares to report its fourth‑quarter earnings, a period already marked by competitive challenges and the lingering impact of the data breach on consumer confidence.
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