Seoul: South Korea's antitrust regulator announced that it has imposed a fine of 2.19 billion won (US$1.54 million) on the e-commerce giant Coupang Corp. for exerting pressure on suppliers to lower prices and bear advertising costs to achieve its target profit margins.

According to Yonhap News Agency, Coupang was also found guilty of delaying payments to suppliers and failing to pay interest on late payments, actions that violate the Act on Fair Transactions in Large Retail Businesses, as stated by the Fair Trade Commission (FTC). In response to these violations, the FTC has issued corrective orders.

The FTC described Coupang as "the dominant player in the online shopping market" and accused the company of compelling suppliers to make sacrifices for the sake of maintaining its profit margins. The FTC emphasized that the imposed fine and corrective orders are intended to reform Coupang's margin management strategies and other core business models that put pressure on suppliers. This measure is aimed at preventing future violations and improving trade practices within the online shopping sector.

Coupang has been under heightened scrutiny after a data breach incident that, according to authorities, affected 33.6 million users. However, Coupang has asserted that data from only approximately 3,000 accounts was actually compromised.