Suspension of Coupang feasible scenario, experts say

Coupang interim CEO Harold Rogers answers questions from lawmakers during a National Assembly hearing in Seoul, Dec. 31, 2025. Yonhap

As the head of the Fair Trade Commission (FTC) reiterates warnings of a possible business suspension for Coupang over its massive data breach, experts are weighing the likelihood of punitive action.

While they say extreme measures like suspension are feasible, they are also urging the FTC to draw up concrete measures to minimize the potential repercussions of such sanctions.

Under the nation’s E-Commerce Act, the financial authority may impose penalties on Coupang unless the company takes sufficient remedial measures to compensate customers. A joint investigation team led by the Ministry of Science and ICT is looking into the breach, which involved some 33.7 million users and their data.

Earlier this week, FTC Chairman Ju Biung-ghi reiterated that Coupang’s business operations could be suspended if it does not abide by the upcoming FTC order.

Experts say the authority may push ahead with the suspension in a show of regulatory resolve against companies engaging in unlawful and unfair business practices.

“If the FTC decides to suspend Coupang’s business, it would have a huge impact on the market by setting a symbolic example for major platform firms,” said Song Se-ryeon, a professor of law at Kyung Hee University.

“Even if Coupang is a U.S. firm, it cannot evade local regulations, as it does business in Korea. Overseas authorities also impose similar sanctions against companies to set an example and maximize their regulatory effects.”

He added, “The FTC can do so to send a stern and clear regulatory message to the market.”

The professor also dismissed arguments that Coupang may evade a possible business suspension on the grounds that its platform dominance would inconvenience tens of millions of users here.

“This is the logic from the market, but from the perspective of the regulatory authority, this cannot be an excuse,” Song said. “Coupang may claim that it has unfairly fallen victim to a regulatory target, but this is also not good logic from a legal framework.”

A Coupang delivery truck is parked at a logistics center in Seoul, Dec. 8, 2025. Yonhap

Others, however, said the watchdog needs to be very careful in imposing harsh sanctions on Coupang, as the fallout for the local economy could be more severe than expected.

“It is legally feasible for the FTC to slap a business suspension on Coupang, but in my view, the authority is unlikely to take that action due to the firm’s massive economic impact in Korea,” said Choi June-sun, professor emeritus of law at Sungkyunkwan University.

Coupang employs hundreds of thousands of employees to operate its many logistics centers and provide quick delivery services here. More than 200,000 self-employed workers who sell their products using the e-commerce platform would also be seriously affected by a business suspension, according to Choi.

“If Coupang’s operations are suspended, a large number of the company’s employees and self-employed workers would lose their jobs,” he said.

He added that it could take months or even years for the regulator to impose a final sanction on the company.

“The point is whether Coupang will accept the FTC’s upcoming corrective order,” he noted.

Officials in the platform industry said Coupang may face alternative sanctions, such as fines or strict corrective orders on its business activities.

“Chances are, Coupang’s business suspension would cast a bigger-than-expected impact not only on the economy, but also on society, so the FTC may opt for lighter penalties, given the potential fallout,” the official said.

Korea’s authorities are going all out to probe Coupang management and hold them accountable for the latest incident. Last week, Coupang interim CEO Harold Rogers did not appear for questioning by police, who have urged him to attend the next questioning session in mid-January.