Citizens are said to be angered by what they see as Coupang’s response — offering low-value compensation coupons that appear to mock consumers while undermining the Korean government. Public disappointment has deepened further as reports emerged that the company actively lobbied U.S. political circles and that its major investors petitioned the U.S. government to intervene, leading many to grow increasingly disillusioned with what they now view as the true nature of Coupang as a corporate entity.
The photo shows a protest staged by civic groups in front of the U.S. Embassy at Gwanghwamun Square in Seoul on Jan. 23. (Image courtesy of Yonhap)
SEOUL, Jan. 27 (Korea Bizwire) — Public criticism of Coupang, South Korea’s dominant e-commerce platform, is intensifying, spreading beyond small merchants to consumer, labor and civic groups, as concerns mount over corporate power, data security and the company’s ties to U.S. political influence.
The backlash has grown sharper since a large-scale personal data breach last year, which critics say Coupang handled poorly. Public anger deepened further after reports emerged that the company and its major U.S. investors had engaged in lobbying efforts in Washington and petitioned the U.S. government to investigate what they described as discriminatory treatment by Korean authorities.
What began as a dispute over corporate responsibility has increasingly been framed as a broader question of national sovereignty and institutional trust.
Small businesses have long accused Coupang of abusing its market dominance. Industry officials say suppliers — particularly in the food sector — are often pressured to accept margins of around 40 percent, leaving little room for profit. While large manufacturers retain some bargaining power, smaller firms say they have little choice but to comply, citing the platform’s overwhelming purchasing scale and the risk of losing orders.
A 2025 survey by the Korea Federation of SMEs found that small businesses relying primarily on Coupang paid an average of 20.6 percent of their total sales in platform-related fees, among the highest in the online retail sector. Payment settlement periods were also significantly longer than those of rival platforms, with more than one-third of respondents reporting waits exceeding 51 days.
A Coupang logistics center in Seoul. (Yonhap)
Consumer anger surged after the data breach when Coupang offered what it described as compensation worth 50,000 won. The package, however, consisted of multiple coupons split across different services — with only 5,000 won usable on the main Coupang app — and carried expiration dates and usage conditions that critics said effectively forced additional spending.
Civic groups denounced the measure as a marketing tactic rather than genuine compensation. A coalition of consumer organizations announced a boycott campaign, calling the coupons “a sales strategy disguised as relief.”
Labor groups have also renewed criticism of working conditions within Coupang’s logistics network. They cite long overnight shifts, excessive workloads and chronic fatigue linked to the company’s early-morning delivery model. Allegations have also surfaced over unpaid severance and weekly allowances for workers classified as day laborers despite performing continuous duties.
The Labor Ministry is reviewing whether those practices violate employment laws. Civic groups and legal experts are also calling for investigations into alleged “blacklists” that may have restricted employment opportunities for workers involved in union activities.
Delivery trucks are parked at a Coupang depot in Seoul. (Yonhap)
The controversy has taken on an international dimension as Coupang’s U.S.-based investors — including firms with close ties to the company’s board — petitioned American authorities to intervene, arguing that Korean regulators were unfairly targeting the company.
The disclosures have fueled public outrage in South Korea, where Coupang generated nearly 78 trillion won (about $58 billion) in estimated transaction volume last year, even as the data breach remained undisclosed for months.
Small-business organizations accused the company of “hiding behind U.S. political power” to pressure its home government. They noted that Coupang Inc. spent more than $10 million on lobbying in the United States over the past four years — funds, they argued, derived from the profits of Korean merchants.
Consumer and civic groups are now calling for stronger legal safeguards to reinforce corporate accountability, arguing that the Coupang case has exposed structural weaknesses in platform regulation at a time when digital monopolies play an increasingly central role in daily life.
As one advocacy group put it, the issue is no longer just about a single company, but about “whether economic growth can continue without sacrificing fairness, labor rights and public trust.”
M. H. Lee (mhlee@koreabizwire.com)
