South Korean lawmakers criticize Coupang for barring inspectors — Korea Herald
In South Korea, lawmakers from the ruling and opposition parties criticized e-commerce company Coupang for refusing to allow representatives of the Fair Trade Commission (FTC) to conduct an on-site inspection. During a parliamentary audit of the FTC on October 12, legislators said they were prepared to adopt legislative amendments so that businesses could not refuse inspections by government agencies, Korea Herald reports.
Inspections since August
The FTC has attempted several times since August to conduct an inspection at Coupang facilities. It is part of an investigation into whether the company may have charged sellers on its online marketplace fees to maintain low prices for buyers.
Min Byung-deok, a lawmaker from the ruling Democratic Party of Korea, said Coupang did not allow FTC representatives into its facilities and demanded that the regulator prove there was a risk of evidence tampering. According to him, the commission's inability to conduct an inspection could set a precedent for other retail companies.
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Dispute over procedure
Park Sung-hoon, a lawmaker from the main opposition People Power Party, said Coupang became the first company operating in South Korea to refuse an FTC inspection after the relevant legal grounds were introduced in 2012. He also criticized the company's reference to its status as a U.S. company and its listing on the U.S. stock market.
Under the Act on Fair Transactions in Large Retail Business and the Monopoly Regulation and Fair Trade Act, the FTC has the authority to compel company inspections. The regulator said all previous inspections had been conducted without prior notice because of the risk of evidence tampering.
Meanwhile, Coupang cited the Framework Act on Administrative Investigations, arguing that the FTC should have notified it of the inspection in advance. Yoo Dong-soo, chair of the National Assembly's National Policy Committee, said a new law was needed to ensure procedural fairness. FTC Chair Joo Byung-ki said the regulator takes Coupang's refusal seriously and warned of an obvious negative impact on the public interest if a court finds the inspection attempt unlawful.
