KFTC Initiates Fine Proceedings Against Coupang for Refusing Investigation

More than 30 million cases of personal information were leaked in a large-scale data breach at Coupang. This number exceeds the economically active population of 29.69 million, making it the worst leak incident in history. Photo by Dongju Yoon, Coupang headquarters on December 1, 2025.

The Korea Fair Trade Commission (KFTC) has initiated procedures to impose an administrative fine of up to 100 million won on Coupang, which is under suspicion of refusing and obstructing an on-site investigation.

According to industry sources on October 1, the KFTC sent an examination report to Coupang on the previous day, which listed suspicions of violations of the Large-Scale Distribution Business Act and included the agency’s opinion regarding Coupang's alleged obstruction of the on-site investigation. As a result, the official review process for Coupang has begun, and after receiving Coupang’s written opinion, the commission will deliberate before deciding on the final sanctions and the level of the penalty.

The Large-Scale Distribution Business Act stipulates that a fine of up to 200 million won may be imposed for unjustified refusal, obstruction, or avoidance of an investigation. However, since this is Coupang’s first refusal, only up to 100 million won may be imposed in this instance. Coupang will have the opportunity to exercise its right to defense by submitting opinions on the examination report and inspecting the evidentiary materials.

Previously, from August 19 to 24, 2026, the KFTC attempted a field investigation at Coupang headquarters as part of efforts to secure evidence related to suspicions of violations of the Large-Scale Distribution Business Act. However, Coupang refused on the grounds that it was not notified in advance of the investigation, leading to the suspension of the process. Subsequently, on September 23, a court dismissed the lawsuit that had provisionally suspended the legal effect of the KFTC's investigation decision for a month, thereby opening the way for a renewed investigation. Coupang has since filed an appeal against this decision.

The KFTC is expected to soon resume its on-site investigation. On September 29, Korea Fair Trade Commission Chair Joo Byungki stated on CBS Radio’s “Seongtae Park’s News Show” that, when asked by the host whether the commission plans another field investigation of Coupang, “We will do everything possible to restore justice that was undermined by the suspended investigation,” thereby reaffirming his commitment to a renewed investigation into Coupang.

This content was produced with the assistance of AI translation services.