Fair Trade Commission Chairman Joo Byung-ki said on the 26th that the agency is preparing to file a criminal complaint against Coupang after the company refused to allow on-site inspections into suspected violations of the law on large retail businesses.
Joo made the remarks at the National Assembly's Special Committee on Budget and Accounts, responding to a question from Rep. Song Jae-bong of the Democratic Party of Korea about how the agency would respond to Coupang's refusal to cooperate.
"Coupang has filed a suit seeking an injunction with the court, so we are also responding to that litigation," Joo said. "Something unprecedented has happened, and we intend to deal with it thoroughly."
Asked whether the agency had any means to impose fines or penalties on Coupang, Joo said it could both refer the case for prosecution and impose penalties. "The fine is not that high, but for now this appears to be the best response available," he said.
"Under current law, the FTC's investigative powers are set up so that inspections can be conducted without prior notice," Joo said. "We have consistently exercised them that way, and we have conducted inspections of Coupang under the same law in the past." He added: "Coupang filed suit by taking advantage of a small gap in the law, so we have no choice but to respond to the litigation. We intend to do everything we can independently."
The FTC had attempted on-site inspections four times to examine allegations that Coupang shifted the cost of price-matching coupons onto suppliers, but was unable to proceed because Coupang refused. Coupang declined to cooperate on the grounds that it had not been notified of the inspections in advance, according to sources. When an administrative agency conducts an on-site inspection, it is required in principle to notify the subject in writing at least seven days before the inspection begins, and Coupang argued that this procedure was not followed.
