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South Korean regulatory enforcement against major firms

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2026-11-09 05:52 UTC → 2026-11-10 07:50 UTC · added ~~removed~~

South Korean regulators have taken actions against several major corporations regarding market competition and consumer transparency. Joo Byung-ki, Chairperson of the Fair Trade Commission (FTC), proposed legislative changes to increase enforcement power. He suggested that companies refusing administrative investigations should face fines of up to 1% of total annual revenue, rather than minor administrative fines. This proposal follows Coupang’s refusal to cooperate with an investigation into the Large-Scale Retail Business Act. Joo characterized the company as a “heavyweight” whose market power could act as a “weapon” against small business owners. In a significant escalation, the FTC imposed a record combined fine of 631.9 billion won on Woowa Brothers, the operator of Baemin, and Coupang, the operator of Coupang Eats. The regulator determined that the two platforms, which control approximately 92.89 percent of the food delivery market, abused their dominant positions to restrict competition. The FTC found that both companies used most-favored-nation requirements to pressure restaurants into offering terms, such as menu prices, that were at least as favorable as those on competing apps. Baemin was also sanctioned for manipulating its app interface to favor its own delivery service, while Coupang was cited for calculating brokerage fees based on pre-discount prices. Both companies intend to challenge the decision through administrative litigation. Coupang argued the penalty was excessive, while Baemin maintained its practices were necessary defensive measures. In separate regulatory actions, the Korea Media and Communications Commission (KMCC) fined Google and Apple a combined 63.7 billion won for violating telecommunications laws. The commission found the companies forced developers to use proprietary in-app payment systems and unfairly delayed app reviews. Apple was specifically noted for applying discriminatory commission standards between domestic and overseas developers. Although the companies nominally permitted third-party payments, the KCC noted they imposed commissions as high as 26 percent on these alternatives, making their own systems the only practical choice. Building on these enforcement efforts, the KMCC also issued a further fine of approximately 20.81 billion won against Apple for violating the Telecommunications Business Act. The regulator mandated that Apple allow external payment links within apps, revise commission structures for third-party payments, and improve transparency regarding app-review timelines. Apple. Additionally, the FTC fined Samsung Electronics approximately 20.1 billion won for deceptive advertising ~~regarding its Game Optimizing Service (GOS). Separately, the FTC~~ and fined ~~biotechnology firm~~ Celltrion 630 million won for violating the Fair Transactions in Subcontracting ~~Act by unilaterally canceling orders for COVID-19 test kits and failing to provide required documentation to a subcontractor.~~ Act.

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