FTC Withdraws Empty-Handed Due to Coupang's Resistance... First Time in History

[Anchor]

It has been belatedly revealed that the Fair Trade Commission (FTC) launched an on-site inspection to look into allegations that Coupang passed on discount costs, but had to withdraw after Coupang refused. It is unprecedented for an on-site inspection to be halted due to a company's resistance.

Reporter Lee Seong-hoon has the details.

[Reporter]

The FTC went on-site to investigate Coupang on the 19th.

The visit was to verify allegations that Coupang passed the costs of price-matching coupons onto suppliers.

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

Coupang argued that the FTC failed to follow the procedural requirement under the Framework Act on Administrative Investigations, which mandates a written advance notice seven days prior to an on-site inspection.

Coupang stated, "We have cooperated with legitimate on-site investigations conducted since January of this year, and we will seek the court's judgment on the legality of this investigation."

However, the FTC maintains that the case falls under exceptions 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 is not required. We judged that this case meets those grounds, and since the enactment of the Large-Scale Distribution Business Act, we have never given advance notice before conducting an investigation.]

The FTC attempted on-site inspections a total of four times, but the investigation ultimately failed to take place due to Coupang's refusal.

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

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

Viewing Coupang's refusal as obstruction of investigation, the FTC is considering imposing fines of up to 200 million won.

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