South Korea fines Coupang for anti-competitive delivery practices
South Korea’s Fair Trade Commission has imposed a provisional fine of ₩300.8 billion ($222.8 million) on Coupang for enforcing unfair conditions in its delivery service operations. The penalty arises from most-favored-nation (MFN) clauses that forced merchants to provide terms at least as favorable as those offered on competing platforms, particularly Baedal Minjok (Baemin), the leading player in the market.
The regulator determined that Coupang misused its market dominance by demanding merchants match or exceed rival terms, often resulting in higher prices for consumers. Coupang launched its delivery division in May 2019, initially setting higher commission rates than Baemin, which prompted some sellers to adjust their pricing upward on its platform.
Starting in April 2023, Coupang limited delivery perks for WOW Membership users to purchases made exclusively at WOW Stores—its preferred merchant network. By July 2023, it broadened MFN requirements across six categories, including pricing structures and operating hours, and revoked the WOW Store designation from businesses that failed to comply. As a result, over 57,907 merchants lost the status at least once, with adherence climbing from 13.49% in July 2023 to 93.78% by October 2025.
The strategy weakened competition among delivery services by restricting merchants’ ability to secure better agreements elsewhere. The Fair Trade Commission’s ruling aligns with previous actions against Baedal Minjok, which received a ₩331.1 billion penalty for comparable abuses, such as requiring merchants to use its delivery network and making deceptive claims about delivery times.
Coupang faces additional corrective measures, including prohibitions on MFN demands, mandatory compliance disclosures, and revisions to its Coupang Eats Merchant Pricing Policy, which imposed fees on seller-funded discounts. The watchdog also directed Coupang to reassess how its practices affected transactions involving primary and secondary products, following disputes over their impact.
