FTC Retreats Empty-Handed After Coupang's Resistance... First Time in History

[Anchor]

The Fair Trade Commission (FTC) launched an on-site inspection to look into allegations that Coupang passed on discount costs, but pulled out after facing resistance from the company. This marks the first time an on-site investigation has been halted due to a company's pushback.

Reporter Lee Seong-hoon has the details.

[Reporter]

The FTC initiated its on-site inspection of Coupang on the 19th.

The move was intended to verify suspicions that Coupang shifted the costs of customized pricing coupons onto suppliers.

However, it was confirmed that the investigators had to turn back as Coupang refused to comply.

Coupang argued that the FTC violated the Framework Act on Administrative Investigations, which mandates a written advance notice seven days prior to an on-site probe.

Coupang stated, "We have cooperated with lawful on-site inspections conducted since January of this year, but we will seek a court ruling regarding the legality of this investigation."

Meanwhile, the FTC maintains that the situation falls under an exception to the advance notice obligation.

[Oh Dong-wook / Director General for Fair Distribution, Fair Trade Commission: If there is concern about the destruction of evidence during an administrative investigation, advance notice can be omitted. We determined that this case met those grounds, and since the enactment of the Large-Scale Retail Business Act, we have never given advance notice when conducting such investigations.]

The FTC attempted on-site inspections a total of four times, but ultimately failed to carry them out due to Coupang's refusal.

This is the first time an on-site investigation has fallen through due to pushback from the target company.

On the 21st, Coupang also filed a lawsuit seeking the cancellation of the FTC's decision to launch an ex officio investigation.

Deeming Coupang's refusal to cooperate as an obstruction of justice, the FTC is reviewing measures to impose a fine of up to 200 million won.

(Video Editing: Kim Yoon-sung)
※ Please note: This article was translated by AI and may contain errors.