SEOUL I’ve been covering the collision course between Coupang and South Korean regulators for months, and Monday’s ruling confirmed the friction is far from over. The Korea Fair Trade Commission (FTC) officially hit Coupang with a 300.9 billion won ($220.59 million) fine, accusing the e-commerce giant of abusing its dominance in the food delivery market through coercive tactics against restaurants.
Here are the key highlights from the decision:
- The “Most-Favored-Nation” Trap: I found the FTC’s core allegation particularly striking. Coupang allegedly forced partner restaurants to match prices, discounts, and delivery fees offered on rival platforms. If merchants refused, Coupang threatened to strip them of their “Wow Restaurant” status, a designation that unlocks discounts and free delivery for Coupang’s paid membership subscribers.
- The Compliance Spike: The numbers tell the story of coercion. The regulator noted that the proportion of restaurants meeting these stringent conditions skyrocketed from roughly 13% in July 2023 to nearly 94% by October 2025, suggesting merchants felt they had no choice but to comply to survive on the platform.
- A Double Blow: Coupang wasn’t alone. The FTC also fined Woowa Brothers (operator of Baemin) 331.1 billion won for similar practices, bringing the combined penalties to over $440 million.
From my perspective, Coupang’s response was predictable but telling. The company called the penalty “excessive,” pointing out it is more than “600 times” the fine imposed in a comparable 2020 case. Coupang argued the FTC included unrelated revenue in its calculations and vowed to fight the decision in court.
This ruling also deepens the chill between the US-listed firm and Seoul. It follows a separate 624 billion won fine from June over a massive data breach, a case that has already drawn political attention in Washington. For now, I’ll be watching the courts, because Coupang clearly has no intention of letting this $220 million price tag stand without a fight.
