KFTC and Coupang regulatory dispute

The Korea Fair Trade Commission (KFTC) and e-commerce company Coupang are involved in a legal dispute regarding the legality of on-site investigations. The conflict began when Coupang refused four scheduled inspections, alleging the KFTC failed to provide the seven-day advance written notice required by the Framework Act on Administrative Investigations. Coupang filed a lawsuit to cancel the KFTC’s decision and requested a stay of execution to avoid potential fines for obstruction.

The KFTC countered that the Large-Scale Retail Business Act contains special provisions exempting such investigations from the notice requirement to prevent the destruction of evidence. The regulator also expressed concern that granting stay orders could allow businesses to dictate the timing of future regulatory actions.

While the legal battle over the initial investigations continues, the KFTC has since conducted a new on-site investigation at Coupang’s headquarters. This subsequent probe focuses on potential violations of the Fair Trade Act regarding the abuse of market dominance. Unlike the previous matter, Coupang has complied with this latest investigation, which reportedly does not require prior written notice.