[Alpha Biz= Ryu Jung Min] Coupang has earned the unfortunate distinction of being the most frequently cited company in online platform-related dispute cases in South Korea last year.


According to Rep. Oh Se-hee of the Democratic Party, a member of the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee, unfair trade disputes involving online platforms have surged significantly. This assertion is based on data provided by the Korea Fair Trade Mediation Agency.


Coupang Involved in 34% of All Online Platform Dispute Cases
The data shows that a total of 333 cases related to unfair practices in the online platform sector were filed with the Korea Consumer Agency in 2023. Of these, 114 cases—or 34%—were related to Coupang and its food delivery service, Coupang Eats, making it the most frequently mentioned platform in such disputes.


Naver followed with 47 cases (14.1%), and Baedal Minjok (Baemin) with 41 cases (12.3%).


Coupang also topped the list in 2022 with 75 cases, but the number jumped by 52% in 2023, further widening the gap with competitors. Naver, which ranked second in 2022, saw a slight decrease in dispute filings, from 49 to 47 cases. As a result, the gap between first and second place widened from a 1.5x difference to a 2.4x difference.


"Majority of Disputes Stem from Power Imbalances"
 

The sharp rise in disputes appears linked to Coupang’s growing dominance in the market. As of March 2024, 32 new cases involving Coupang have already been filed. If this trend continues, total filings for 2024 could reach approximately 120 by year’s end.


The high volume of dispute filings suggests that conflicts between platform operators and sellers—or between sellers themselves—occur frequently and often cannot be resolved independently.


Rep. Oh noted that “the vast majority of dispute cases filed against Coupang from 2023 to March 2024 involved abuse of superior bargaining power, reflecting inherent power imbalances in these transactions.”


Of the 186 dispute cases filed during this period, 130 involved Coupang and 18 involved Coupang Eats, collectively accounting for 74.7% of all cases.


She further stressed the urgency of enacting the Online Platform Act to clearly define the responsibilities of platform operators and to establish institutional protections for third-party sellers.

 

 

 

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