Seoul, February 26: South Korea’s antitrust regulator has imposed a fine of 2.19 billion won, equivalent to $1.54 million, on e-commerce major Coupang for engaging in unfair trade practices involving its suppliers.
The country’s Fair Trade Commission said on Thursday that the company pressured suppliers to lower product prices and shoulder advertising expenses to maintain its target profit margins.
FTC Flags Supplier Pressure and Payment Delays
According to the regulator, Coupang was also found to have delayed payments to suppliers and failed to pay late interest. These actions were deemed to be in violation of the Act on Fair Transactions in Large Retail Businesses.
The Fair Trade Commission issued corrective orders directing the company to address the violations. The watchdog described Coupang as the dominant player in South Korea’s online shopping market and stated that the company forced suppliers to make sacrifices to protect its own margins.
The regulator added that the enforcement action is intended to reform Coupang’s margin management practices and core business models that exert pressure on suppliers. The move aims to prevent a recurrence of similar practices and improve fairness in the online shopping sector.
Data Breach Adds to Regulatory Scrutiny
The fine comes amid heightened scrutiny following a data breach incident that authorities say affected 33.6 million users. Coupang has disputed this figure, claiming that data from only about 3,000 accounts was actually leaked.
Separately, the company disclosed that around 200,000 Taiwanese accounts were accessed in a recent breach that impacted approximately 33 million accounts.
The incident prompted Coupang to engage cybersecurity firms Mandiant and Palo Alto Networks to conduct a comprehensive forensic investigation after the breach in November 2025.
Forensic Investigation and Company Response
Coupang stated that the breach was the result of criminal activity by a former employee. The company said it has called for the individual to be prosecuted to the fullest extent of the law.
According to Coupang, Mandiant’s investigation found that the former employee’s unauthorized activity included access to approximately 200,000 accounts in Taiwan.
The company further asserted that no highly sensitive data was accessed. It added that there is no evidence that any of the accessed customer data was viewed, shared, or transferred to any other individual.
The regulatory action and the ongoing fallout from the data breach have placed Coupang under intensified scrutiny as authorities push for stronger compliance and fairer practices in South Korea’s fast-growing e-commerce sector.
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