▲ Fair Trade Commission Chair Joo Byung-ki
Fair Trade Commission (FTC) Chair Joo Byung-ki stated on September 29, "We will make every effort to the end to restore the justice that was collapsed due to the Coupang investigation being halted (by the court's provisional stay of execution)."
Chair Joo made the remarks during an appearance on CBS Radio's "Park Sung-tae's News Show" when asked whether the FTC plans to resume its on-site inspection following the court's dismissal of Coupang's application for a stay of execution against the FTC's on-site investigation.
Previously, the FTC went to conduct an on-site inspection of Coupang from August 19 to 24 to secure materials related to suspected violations of the Large-Scale Retail Business Act, but withdrew after Coupang refused to comply, claiming it had not been notified of the investigation.
Subsequently, Coupang filed a lawsuit with the court seeking the cancellation of the FTC's decision and disposition to conduct the on-site investigation.
The court temporarily suspended the effect of the FTC's on-site investigation decision and disposition for about a month before finally dismissing the case on September 23.
Regarding Coupang's suspected violations, Chair Joo stated, "When dealing with numerous client companies, forcing disadvantageous transactions can become a subject of sanctions," adding, "We went out to investigate because there were such suspicions."
He continued, "It is fortunate that the presiding judge sided with the weight of the public interest, which consists of the rights and interests of economically vulnerable groups and hundreds of thousands of small merchants."
Addressing ongoing claims raised in the U.S. House of Representatives that the FTC discriminates against Coupang, a U.S.-linked firm, Chair Joo brushed it off, saying, "None of the major U.S. media outlets report on their claims."
When asked whether he brought up the Coupang issue during a recent meeting with the head of the U.S. antitrust authority, he explained, "There is no need to explicitly (mention) it," and added, "The U.S. antitrust authority is well aware of our competition authority's capabilities."
Regarding the Priority Investigation Task Force launching next month, he explained the rationale for its establishment, saying, "As the proportion and power of the platform economy grow, the enforcement methods of competition law itself must be able to respond flexibly to this."
He added, "A specialized organization is needed to deal with various legal violations, such as abuse of market dominance, issues related to labeling and advertising, and tie-in sales by Coupang, Naver, Kakao, and Baemin (Baedal Minjok)."
Regarding delivery app commissions, he diagnosed, "South Korea's delivery app market size is 5 times that of Japan, larger than the combined size of Germany and the UK, and about 1/3 level of the U.S.," adding, "With high population density, high demand, and large sales, it is a favorable structure where (delivery apps) can generate high profits at low costs."
He then hinted at the need to lower commissions, stating, "Compared to those factors, the commissions, including transaction fees, advertising fees, and delivery fees, are excessive."
(Photo: Yonhap News)
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