Could Coupang Become the First Case for the KFTC’s New ‘Grim Reaper’ Team?

Korea Fair Trade Commission Chair Ju Byung-ghi has warned that Coupang’s refusal to cooperate with an investigation threatens the legal framework meant to protect small businesses and self-employed people. He also signaled that the e-commerce company could become the first major case for a new investigative team known inside big business as the commission’s “grim reaper division.”

“The Act on Fair Transactions in Large Retail Business is the last line of defense for protecting the legal interests of small entrepreneurs and self-employed individuals, and this was an attempt to undermine the law by exploiting legal loopholes,” Ju told the Hankyoreh in an interview marking his first year as commission chair.

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The Act on Fair Transactions in Large Retail Business is the last line of defense for protecting the legal interests of small entrepreneurs and self-employed individuals, and this was an attempt to undermine the law by exploiting legal loopholes.

The commission began investigating Coupang on Aug. 19 over suspected violations of the retail business law. It stopped the probe five days later after Coupang refused to cooperate, arguing that the agency had not provided advance notice under the Framework Act on Administrative Investigations. Coupang then filed a lawsuit seeking to halt the investigation and requested a stay of execution. The court suspended the effect of the commission’s decision until Sept. 23 while it considers that request.

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The investigation cannot proceed until later this month, and given the destruction of all evidence such as related emails, this could undermine the effectiveness of law enforcement efforts. We must restore normalcy to this abnormal situation as soon as possible.

Ju said the delay could weaken enforcement, particularly because related emails and other evidence had been destroyed. He accused Coupang of using legal maneuvering to exploit a gap in the law and said amendments would close it. The framework law lists several statutes, including the Monopoly Regulation and Fair Trade Act, as exceptions to advance-notice requirements, but does not expressly cover the retail business law or similar legislation enacted later.

The new special investigative planning team, scheduled to launch next month, will have about 40 members and conduct integrated investigations into serious unfair practices involving multiple legal violations. Ju said major cases such as Coupang’s would be assigned to the team, focusing attention on whether the company will become its inaugural case.

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We will amend the law to expressly address these regulations and remove as many loopholes as possible.