SEOUL — Coupang, the South Korean e-commerce giant with annual sales reaching 40 trillion won, is facing a critical turning point as the Korea Fair Trade Commission (KFTC) intensifies its scrutiny into four major allegations of unfair trade practices. The outcome of these investigations could fundamentally alter the landscape of the domestic e-commerce industry.

According to industry sources and the KFTC on January 4th, the antitrust regulator will hold a meeting on January 7th to determine the level of sanctions regarding Coupang’s alleged unfair collection of advertising fees from third-party sellers. The core of the case lies in whether Coupang effectively coerced sellers into purchasing advertisements, which would constitute a violation of the Large-Scale Distribution Business Act.

A more significant threat to Coupang’s business model is the investigation into the "tying" of its "Wow" paid membership. The KFTC recently completed its examination report and plans to reach a conclusion within the first half of 2026. The investigation focuses on whether providing Coupang Play (OTT) and Coupang Eats (food delivery) as a free bundle with the membership constitutes an unfair "transactional coercion" under the Fair Trade Act. If found illegal, Coupang may be forced to decouple these services, potentially dismantling its ecosystem of 14 million subscribers.

In addition, Coupang faces allegations of demanding "Most-Favored-Nation (MFN)" treatment from delivery vendors and shifting promotional costs to its private label (PB) suppliers. Notably, KFTC Chairman Joo Byung-gi recently mentioned the possibility of a "business suspension" during a parliamentary hearing, signaling a stern regulatory stance. Industry experts predict that if the KFTC officially designates Coupang as a "market-dominant player," the resulting sanctions and structural remedies could trigger a massive shift in the e-commerce market's competitive dynamics.

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