SEOUL — South Korea’s Fair Trade Commission can resume a stalled on-site inspection of Coupang Inc. after a local court declined the U.S.-listed retailer’s request to block the search, Fair Trade Commission Chairman Ju Biung-ghi said Tuesday, ending a legal standoff that had frozen the agency’s most closely watched antitrust case in months.
Coupang had refused entry to investigators last month and secured a temporary court order pausing the inspection while it argued that the watchdog’s tactics were disproportionate. The court lifted that pause last week and formally rejected Coupang’s broader motion to stop the probe on Tuesday, according to commission officials and court listings reviewed by InfoHandle.
What regulators are investigating
The Fair Trade Commission opened the case amid complaints from marketplace vendors who allege Coupang forced them to absorb promotional discounts the platform advertised to shoppers. Korean competition law bars dominant platforms from imposing unfair contract terms; if investigators substantiate the claims, Coupang could face fines and orders to change commercial practices affecting hundreds of thousands of small merchants.
Coupang has said it cooperates with lawful inquiries but contended that the on-site raid was premature while document requests were still in progress. Company shares traded in New York have been sensitive to Seoul regulatory headlines because South Korea remains Coupang’s largest revenue base and the market where its Rocket Delivery logistics network faces the densest scrutiny.
Ju frames ruling as win for merchants
In a radio interview Tuesday, Ju said the decision “served the public interest, including the rights of the economically vulnerable and hundreds of thousands of small merchants.” He pledged to “restore justice undermined by the stalled probe,” language that signals the commission will move quickly to execute the inspection warrant.
Business groups aligned with traditional retail welcomed the ruling, arguing that Coupang’s scale — it controls a dominant share of Korean e-commerce — requires muscular oversight. Coupang’s industry association allies counter that aggressive raids chill investment and that discounting battles ultimately benefit consumers.
Political context in Seoul
The dispute lands as President Lee Jae Myung’s administration emphasizes consumer protection and fair competition after years of debate over platform power. Lee has not commented directly on the Coupang case, but senior aides have said the Fair Trade Commission should enforce the law without regard to a company’s foreign listing status.
Opposition lawmakers warned against politicizing the inspection, noting that Coupang employs tens of thousands in fulfilment centres across Gyeonggi province. Labour unions representing warehouse staff asked both sides to avoid disruptions that could idle night-shift teams during the Chuseok holiday period.
Next procedural steps
Investigators typically have a limited window to execute an on-site search once a court clears obstacles. Legal experts said Coupang could still challenge findings after the inspection but would struggle to block the commission from collecting physical and digital records on site.
Analysts at Korean brokerage houses told clients Tuesday that a prolonged probe could weigh on sentiment even if financial penalties remain months away. Vendors who spoke to InfoHandle on condition of anonymity said they hoped regulators would publish guidance on how promotional spending must be shared — a detail many small sellers said was missing from standard marketplace contracts.
The Fair Trade Commission did not announce a timetable for concluding the investigation. Coupang’s legal team said it would “review the court’s decision and respond through appropriate channels,” without confirming whether staff would admit investigators immediately.