Coupang challenges KFTC investigation legality in court

Coupang and the Korea Fair Trade Commission (KFTC) are engaged in a legal dispute regarding the legality of recent on-site investigations. Coupang has requested a court to suspend the effectiveness of a previous investigation, arguing that the KFTC failed to provide the required prior notice, which violates the Framework Act on Administrative Investigations.

Coupang contends that if the investigation's effectiveness is maintained, the company faces potential fines for obstruction. Conversely, the KFTC argues that the investigation period has already expired, making a suspension of effectiveness moot. The KFTC also expressed concern that granting such a request could allow businesses to dictate the timing and execution of future investigations by using stay orders to delay regulatory actions.

In a separate but related development, the KFTC conducted a new on-site investigation at Coupang's headquarters to examine potential violations of the Fair Trade Act, specifically regarding the abuse of market dominance. Unlike the previous investigation concerning the Large-Scale Retail Business Act, this current probe reportedly does not require prior written notice. Coupang has complied with this latest investigation.