"Refusing an investigation is a direct challenge to public authority," critics say… Coupang: "We exercised our procedural rights"

Strong criticism was voiced during a National Assembly audit over Coupang's lawsuit challenging the Fair Trade Commission's on-site investigation. As responsibility for the recent large-scale connection outage affecting Coupang and Coupang Eats came under scrutiny, Chief Vice President Joo Sung-won of Coupang apologized and announced that compensation plans had been prepared by type of damage.

At the National Assembly Political Affairs Committee's audit of the Fair Trade Commission on the 12th, Democratic Party of Korea lawmaker Lee Kang-il pointed out that Coupang had taken legal action in response to the Korea Fair Trade Commission's on-site investigation and document submission requests, asking, "Is there anyone who would not say this is a direct challenge to public authority?" He further questioned whether the move was intended to conceal key evidence such as data, or whether it reflected consideration of U.S. support.

In response, Coupang Chief Vice President Joo Sung-won stated, "We exercised the company's procedural right to seek legal remedy," adding that the decision was made after internal discussions with relevant departments. He emphasized that this was not an act to refuse the Korea Fair Trade Commission's investigation, but rather the exercise of rights guaranteed by law.

The controversy over Coupang's refusal of the Korea Fair Trade Commission's on-site investigation began last August. When the Korea Fair Trade Commission launched an on-site investigation into suspicions that discount coupon costs were being passed on to suppliers, Coupang refused to cooperate, citing issues with the prior notification procedure, and filed a lawsuit. After the Seoul High Court dismissed Coupang's application for a stay of enforcement on the 23rd of last month, Coupang filed a further appeal. The Korea Fair Trade Commission expressed concern that companies halting investigations through litigation could hinder the exercise of investigative powers in the future.

The connection outage affecting Coupang and Coupang Eats that occurred at midnight on the 9th also came under scrutiny. At the time, service access was disrupted, causing inconvenience not only to Coupang users but also to restaurants receiving orders through Coupang Eats and delivery-related workers. In particular, as the outage occurred during late-night business hours, issues regarding revenue losses for small businesses were raised.

When Lee (Rep.) pressed Coupang on its responsibility for the network outage, Chief Vice President Joo apologized, saying, "First of all, I would like to express my apologies to everyone who experienced inconvenience due to the service disruption." He then explained, "We have prepared compensation plans by type and announced the finalized portions of those plans."

Coupang Eats decided to pay restaurant owners 100% of the settlement amount, equivalent to normal sales, for orders that were accepted during the outage period but canceled due to system errors, with payments to be made by the 16th. The company also decided not to charge advertising fees for those canceled orders. Customers whose orders were canceled will receive a 3,000-won coupon, and delivery drivers will be compensated depending on the status of their orders.

However, five organizations, including the Federation of Small Business Owners, issued a joint statement on the 11th urging that compensation should cover not only canceled orders but also business losses incurred from being unable to receive orders.