Coupang Financial under scrutiny over high-interest loans to third-party sellers
Lee Chan-jin, governor of the Financial Supervisory Service, delivers a New Year’s address at the pan-financial New Year gathering at Lotte Hotel Seoul, Monday. Joint Press Corps
Coupang Financial, the financial arm of Coupang, is facing mounting scrutiny after Financial Supervisory Service (FSS) Gov. Lee Chan-jin publicly criticized the company, Monday, saying its high-interest loans to third-party sellers with rates nearing 19 percent annually are “difficult to justify."
The financial watchdog is examining whether Coupang Financial violated relevant laws, focusing on the structure of the controversial loan product and compliance with disclosure requirements. The FSS has completed an on-site review and is now discussing whether to launch a full-scale inspection.
“This case could be viewed as unfair practices from a business ethics perspective,” Lee told reporters. “The company appears to have arbitrarily applied an interest rate calculation that is difficult to justify, ultimately giving the impression of excessive profit-taking.”
He added that his agency is “moving toward a formal inspection after conducting a detailed on-site review.”
Coupang has been mired in multiple controversies, including a data breach and allegations that it covered up deaths linked to overwork and industrial accidents.
Coupang delivery vehicles are parked at one of the firm's logistics centers in Seoul, Dec. 29, 2025. Yonhap
The loan product in question, offered by Coupang Financial to third-party sellers, carries annual interest rates ranging from 8.9 percent to 18.9 percent. It has come under fire from critics who say the company is using the market power of its e-commerce platform to justify higher borrowing costs.
Rep. Kim Hyun-jung of the ruling Democratic Party of Korea (DPK) said there were serious signs of deceptive sales practices, arguing that third-party sellers may have been pushed into taking out the loan through practices resembling bundling, such as offering increased order volumes.
Still, because the loan’s interest rate remains below the 20 percent legal cap, financial authorities say the rate itself is unlikely to be a violation. Instead, they are examining possible breaches of consumer protection rules related to the loan’s structure and disclosure.
The collateral structure has emerged as a key point of contention. According to contracts reviewed by Rep. Lee In-young of the DPK, if a third-party seller fails to repay the loan on time, Coupang Financial is entitled to use the seller’s settlement receivables from Coupang or Coupang Pay as collateral and directly claim those funds.
The watchdog is assessing whether the risks and effects of the collateral arrangement were fully explained during the sales process and whether borrowers could have been misled into viewing the loan as unsecured.
“The review also covers any exaggeration in advertising,” an FSS official said.
Coupang has pushed back against the criticism, saying the product was developed under a “mutual growth” framework to support financially marginalized third-party sellers.
The company told Rep. Lee that the loan was intended to provide funding to small business owners and mid- to low-credit sellers who are often excluded from conventional financial services.