Coupang, which has been embroiled in controversy over its refusal of an on-site investigation by the Fair Trade Commission and suspicions of passing on costs related to Price-Matched Coupons (PMC), faced intense criticism from lawmakers during the National Assembly's national audit. Coupang explained that its refusal of the on-site investigation was an exercise of procedural rights, while emphasizing its direct purchase transaction structure regarding the suspicions of PMC cost pass-through.
The National Assembly's Political Affairs Committee conducted a national audit targeting the Fair Trade Commission, the Korea Consumer Agency, and the Korea Fair Trade Adjustment Board on the 12th. Coupang Chief Operating Officer Joo Sung-won, GS Retail Vice President Oh Jin-seok, and Homeplus CEO Jo Ju-yeon appeared as witnesses at the hearing.
The controversy over Coupang's refusal of an on-site investigation by the Korea Fair Trade Commission came under scrutiny during this national audit. The Korea Fair Trade Commission had launched an on-site investigation in August to verify suspicions, including that it had passed discount costs on to suppliers, but Coupang refused, citing procedural issues under the Basic Act on Administrative Investigations.
Lawmakers continued their criticism over Coupang's refusal of the investigation. Democratic Party of Korea lawmaker Lee Kang-il pointed out that Coupang filed a lawsuit for cancellation regarding the Korea Fair Trade Commission's second on-site investigation and applied for an injunction against the effect of a document submission order, asking, "Is this to hide core evidence such as data, or is it with an eye toward U.S. assistance?"
In response, Chief Operating Officer Joo stated, "It was an exercise of the company's procedural right to remedy," and answered that it was "a matter decided after internal discussions with relevant departments."
Questions were also raised regarding suspicions of PMC cost pass-through. People Power Party lawmaker Park Seong-hoon demanded the submission of documents related to PMC, stating, "We will take strict measures to the end within the scope permitted by law." Chief Operating Officer Joo said, "Rocket Delivery, which accounts for the majority of our transactions, operates on a direct purchase structure, meaning the company bears inventory risk immediately after purchasing goods," and added, "I will explain the direct purchase aspect and discuss any necessary documents."
GS Retail also faced criticism from lawmakers. Suspicions were raised that specific vendors (intermediate distributors) were involved in transactions during the supply process to provide unfair benefits. Democratic Party of Korea lawmaker Han Min-su pointed out that while GS25 headquarters could trade directly with suppliers, it was conducting transactions through specific intermediate vendors. In response, Vice President Oh answered, "We are carefully examining whether there are any internal issues."
Homeplus faced continued questions regarding the implementation of its rehabilitation plan. Democratic Party of Korea lawmaker Min Byung-deok asked, "While receiving 200 billion won in DIP (Debtor-in-Possession) financing, there were no conditions for voluntary retirement," and questioned, "What are you doing to achieve normalization and restore trust, rather than just headcount reduction?"
Jo (CEO) answered, "Our initial expectation was an increase in inventory and sales through the normalization of supply," and stated, "Currently, sales growth is limited due to factors such as advance payments." He added, "The current situation can only be resolved if M&A proceeds as planned."
Additionally, Social Democratic Party lawmaker Han Chang-min pointed out a case where Hansol Paper received a full exemption from a 142.5 billion won cartel fine through the voluntary self-reporting leniency system (leniency), raising concerns about the potential abuse of the system. Korea Fair Trade Commission Chairman Joo Byung-gi stated that he is preparing a bill to amend the law to ensure that companies leading cartels do not gain unfair profits.
Trademark license fee transactions between affiliates of CJ Group and Hanwha Group also came under scrutiny. Joo (Chairman) explained that they are examining whether there was coercion or undue intervention in the process of setting trademark license fees and are preparing relevant guidelines.
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