Coupang's request to suspend the effectiveness of an investigation by the Fair Trade Commission (FTC) has been denied by the Seoul High Court. The FTC plans to impose a fine on Coupang for obstructing the investigation.
According to Yonhap News on September 23, the Administrative Division 6-2 of the Seoul High Court (Judges Choi Hang-seok, Park Young-joo, and Kim Min-ki) dismissed Coupang's request for a suspension of the FTC's investigation.
The court stated, "At this time, the public interest in allowing the investigation to proceed outweighs the disadvantages that the applicant (Coupang) may face from the investigation." This ruling suggests that if the request had been granted, it could have set a precedent allowing other companies to halt investigations through similar requests.
Coupang had previously refused to comply with the FTC's on-site investigation related to allegations of violating the Large-Scale Distribution Business Act, filing a lawsuit for cancellation along with the request for suspension. Coupang claims that the FTC did not provide prior notice for the investigation, which is required under the Administrative Investigation Basic Act.
The court temporarily suspended the effectiveness of the investigation decision until the hearing held on September 2, where both parties presented their arguments.
Coupang explained that the request for suspension was aimed at obtaining a court ruling on the FTC's investigation practices, which have historically been conducted without prior notification.
In response, the FTC argued that granting the request would allow companies to use suspension requests to halt investigations, effectively allowing them to dictate the timing and conduct of investigations.
With the court's dismissal of the request, the effectiveness of the investigation decision is immediately reinstated. The FTC plans to hold a meeting to impose a fine on Coupang for obstructing the investigation. Under current law, refusing an on-site investigation can result in a fine of up to 200 million won.
An FTC official stated, "We will send a review report to Coupang regarding the imposition of the fine, and Coupang will have the opportunity to defend itself by submitting written opinions, requesting access to evidence, and providing statements after receiving the report." The FTC also plans to conduct additional investigations if necessary.
According to Yonhap News on September 23, the Administrative Division 6-2 of the Seoul High Court (Judges Choi Hang-seok, Park Young-joo, and Kim Min-ki) dismissed Coupang's request for a suspension of the FTC's investigation.
The court stated, "At this time, the public interest in allowing the investigation to proceed outweighs the disadvantages that the applicant (Coupang) may face from the investigation." This ruling suggests that if the request had been granted, it could have set a precedent allowing other companies to halt investigations through similar requests.
Coupang had previously refused to comply with the FTC's on-site investigation related to allegations of violating the Large-Scale Distribution Business Act, filing a lawsuit for cancellation along with the request for suspension. Coupang claims that the FTC did not provide prior notice for the investigation, which is required under the Administrative Investigation Basic Act.
The court temporarily suspended the effectiveness of the investigation decision until the hearing held on September 2, where both parties presented their arguments.
Coupang explained that the request for suspension was aimed at obtaining a court ruling on the FTC's investigation practices, which have historically been conducted without prior notification.
In response, the FTC argued that granting the request would allow companies to use suspension requests to halt investigations, effectively allowing them to dictate the timing and conduct of investigations.
With the court's dismissal of the request, the effectiveness of the investigation decision is immediately reinstated. The FTC plans to hold a meeting to impose a fine on Coupang for obstructing the investigation. Under current law, refusing an on-site investigation can result in a fine of up to 200 million won.
An FTC official stated, "We will send a review report to Coupang regarding the imposition of the fine, and Coupang will have the opportunity to defend itself by submitting written opinions, requesting access to evidence, and providing statements after receiving the report." The FTC also plans to conduct additional investigations if necessary.
* This article has been translated by AI.
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