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Lawmakers slam Coupang for refusing to cooperate with antitrust probe

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Fair Trade Commission Chairman Ju Biung-ghi, left, speaks during the commission's parliamentary audit at the National Assembly in Seoul, Monday. Yonhap

Fair Trade Commission Chairman Ju Biung-ghi, left, speaks during the commission's parliamentary audit at the National Assembly in Seoul, Monday. Yonhap

Lawmakers from both the ruling and opposition parties criticized Coupang on Monday for refusing an on-site investigation by the antitrust regulator, warning that its actions could undermine law enforcement and calling for legislation to prevent companies from obstructing investigations.

During a parliamentary audit of the Fair Trade Commission (FTC) at the National Assembly in Seoul, Rep. Min Byoung-dug of the ruling Democratic Party of Korea (DPK) said Coupang had blocked investigators from entering its premises, demanding that the FTC explain why it believed evidence could be destroyed.

“There is a question of whether Coupang should be allowed to treat Korea’s public authorities this way,” Min said. “If Coupang brazenly disregards the FTC’s authority in Korea, other retailers will do the same … It will be a very bad precedent.”

He also called for a committee resolution or a statement from the committee chair or party floor leaders condemning Coupang’s actions.

Coupang refused the commission’s on-site investigation in August over suspected violations of the law governing large retailers, arguing that the regulator had failed to provide the required advance notice. The company filed a lawsuit seeking to overturn the investigation decision and requested an injunction to suspend the investigation.

The Seoul High Court rejected the injunction request last month, ruling that suspending the investigation would harm the public interest more than it would benefit the e-commerce giant. Coupang filed a further appeal on Sept. 28, but the move did not automatically suspend the court’s decision, allowing the FTC to resume its investigation.

Rep. Park Sung-hoon of the main opposition People Power Party (PPP) also criticized the company, noting that it was the first time since the law governing large retailers took effect in 2012 that a company had prevented the commission from conducting an on-site investigation.

“Despite earning enormous profits and enjoying all kinds of benefits in Korea, Coupang hides behind the shield of being an American company only when things go against it, refusing to fulfill its responsibilities,” Park said. “A company's listing on the U.S. stock market must not become a license to disregard Korean law.”

Rep. Yoo Dong-soo of the DPK urged the ruling and opposition parties' floor leaders to discuss possible countermeasures, including legislation to strengthen the FTC’s investigative powers.

“We should consider legislation to prevent companies from demanding that the FTC prove a risk of evidence destruction before conducting an investigation,” he said.

FTC Chairman Ju Biung-ghi said the agency was taking the matter seriously, warning that granting Coupang’s request to suspend the investigation could severely undermine enforcement.

“It is unclear what legal benefits would be gained by granting the request for an injunction, but the severe adverse impact on the public interest that would result is obvious,” Ju said.

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