Coupang’s delivery trucks (Image courtesy of Yonhap)
SEOUL, Dec. 2 (Korea Bizwire) – South Korea’s Fair Trade Commission (FTC) is taking action against Coupang, Naver, and Market Kurly for allegedly hindering consumers from canceling their paid memberships.
Coupang, in particular, faces additional scrutiny for using deceptive “dark patterns” in its membership pricing and cancellation processes.
Coupang’s “Wow Membership” program allegedly made mid-term cancellations difficult by refusing refunds for the unused portion of subscriptions, instead continuing service until the end of the billing cycle.
By law, unused fees should be refunded immediately upon cancellation. The FTC claims this policy effectively rendered mid-term cancellations impossible.
The company also faces accusations of misleading consumers during a price hike for the Wow Membership, which increased from 4,990 KRW to 7,890 KRW. Coupang reportedly added a vague “membership fee change agreement” clause to the checkout page, assuming customer consent if the purchase was completed, a tactic the FTC deems deceptive.
Naver and Market Kurly, which operate similar membership models, are also under investigation for potential violations of South Korea’s e-commerce laws.
Coupang’s regulatory troubles extend further. The FTC is examining allegations that the company bundled additional services like Coupang Play and free delivery on Coupang Eats with its Wow Membership to stifle competition.
Other probes target claims that Coupang forced suppliers to absorb promotional costs for underperforming private label products and pressured restaurant partners on its Coupang Eats platform to match pricing and discounts offered on rival apps.
Coupang’s previous disputes with the FTC remain unresolved. In June, the company was fined 162.8 billion KRW for manipulating search algorithms to favor its private-label products.
It has also faced penalties for issuing false pricing documents to subcontractors and enforcing aggressive “lowest price guarantees” that reportedly harmed suppliers. Several of these cases are under appeal in court.
As investigations and lawsuits continue, the FTC’s focus on Coupang highlights growing regulatory scrutiny of dominant online platforms in South Korea.
Ashley Song (ashley@koreabizwire.com)
