Despite its lower market share, Coupang leads in terms of net sales among the businesses surveyed by the Fair Trade Commission. (Image courtesy of Coupang)
SEOUL, Jan. 5 (Korea Bizwire) – A conflict has erupted between Coupang, the South Korean e-commerce giant, and the Korea Economic Daily newspaper, following a series of critical articles published by the latter.
Coupang has announced plans for legal action, accusing the newspaper of siding with major conglomerate-run retail companies and belittling its innovative practices. In response, the Korea Economic Daily has defended its reporting as being based on “objective facts.”
On the January 3, the Korea Economic Daily dedicated an entire page to articles scrutinizing Coupang. The main article, titled “Dissecting the ‘Retail Dinosaur’ Coupang,” highlighted the e-commerce company’s imposition of a 27.5% commission on sellers, a rate considerably higher than its competitors.
The newspaper suggested this might lead to a ‘dilemma’ where innovation breeds monopolistic practices, similar to past cases with Naver and Kakao.
The publication also cited examples where Coupang’s ‘channel usage fees’ accounted for 45% of the selling price. Further, it discussed the growing concerns among small sellers regarding increasing entrance fees and allegedly sudden and unilateral decisions made by Coupang, which were equated to unfair business practices.
However, Coupang countered these claims in a press release on the same day, denying the allegations and expressing strong regret over the reports, which it deemed as false. The company argued that its commission rates are among the lowest in the industry, capping at a maximum of 10.9%.
Coupang emphasized its role as a competitor in the market, holding only a 4% market share against major retail conglomerates.
This figure represents Coupang’s sales in relation to the entire retail market size of 602 trillion won in 2022. In contrast, Coupang stated that Shinsegae, a major competitor, holds a 5% market share, accounting for the cumulative sales of nine different retail operations.
Despite its lower market share, Coupang leads in terms of net sales among the businesses surveyed by the Fair Trade Commission. The company accused conglomerate-owned retail companies of consistently undermining its innovations and distorting facts to maintain their dominance in the market.
Coupang further criticized these actions as being detrimental to consumer benefits, framing them as an extension of a privileged cartel’s attacks. The company declared its intent to pursue legal actions, including demands for corrections from the Korea Economic Daily.
In response to Coupang’s rebuttal, the Korea Economic Daily maintained its stance, asserting to Media Today that its articles were based on thorough research and objective facts.
M. H. Lee (mhlee@koreabizwire.com)
