South Korea's Fair Trade Commission has begun proceedings to impose a fine of up to 100 million won ($72,000) on Coupang for obstructing an on-site inspection.
The FTC recently sent Coupang an examiner's report alleging that the company obstructed an on-site inspection tied to suspected violations of the Act on Fair Transactions in Large Retail Business, according to industry sources on the 1st. The law allows fines of up to 200 million won when a company refuses, obstructs or evades an inspection without justifiable grounds. Because this is Coupang's first refusal, however, the maximum penalty in this case is 100 million won. Coupang will be able to defend itself by submitting a response to the report and reviewing the evidence.
The FTC attempted the on-site inspection from Aug. 19 to 24 this year, but the probe was halted after Coupang refused on the grounds that it had not been notified in advance. Coupang subsequently filed a lawsuit seeking to overturn the FTC's inspection order.
A court temporarily suspended the effect of the FTC's inspection decision for about a month but ultimately rejected Coupang's request for an injunction on the 23rd of last month, siding with the regulator on the grounds that the public interest served by the inspection was greater. Coupang has filed a further appeal. The FTC plans to resume the aborted inspection and also to tighten rules to prevent companies from evading on-site inspections.
