Seoul High Court Clears Coupang Probe Amid $350 Billion US Talks
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The Seoul High Court on Wednesday rejected Coupang’s bid to suspend an on-site antitrust inspection, allowing South Korea’s Fair Trade Commission to proceed with its investigation.
The ruling complicates talks between Seoul and Washington over the next stages of a planned $350 billion South Korean investment in the United States.
Coupang had refused to cooperate with the probe, arguing that the regulator failed to provide advance notice. Following the court’s decision, FTC Chairman Ju Biung-ghi vowed to review internal agency rules to prevent companies from using court injunctions to evade or delay investigations.
Court Clears On-Site Fair Trade Probe
Ju rejected claims from Washington that Korean regulators are singling out American businesses. He affirmed that the watchdog enforces competition rules equally across domestic and foreign firms. The regulator opened its on-site probe in September following months of tension over platform compliance and supplier relationships. In June, Coupang secured FTC approval for a voluntary co-prosperity scheme tied to private brand supplier contracts. Broader compliance inquiries continued anyway.
For digital platform operators across South Korea, the ruling establishes that procedural objections will not derail regulatory sweeps. Domestic rivals such as Naver and Shinsegae-backed SSG.com, alongside foreign entrants targeting the Korean market, face strictly enforced spot checks. Suppliers and merchants gain use against platform gatekeepers as regulators examine contract terms and distribution dominance.
“The regulator opened its on-site probe in September following months of tension over platform compliance and supplier relationships.”
Scrutiny Strains Bilateral Investment Package
Regulatory friction is now spilling into broader trade diplomacy between Seoul and Washington. Under a bilateral framework, South Korean conglomerates agreed to commit 350 billion dollars to US industrial projects in exchange for lower US tariffs on Korean exports. The two sides have already selected a 200 billion dollar gas-fired power facility in Texas. It will power data centres and semiconductor fabrication plants.
Subsequent tranches of the investment deal remain subject to negotiations over financing, returns and government approvals. Those talks involve capital commitments in nuclear energy, Westinghouse technology partnerships and the Alaska LNG development. Heightened scrutiny on Coupang gives American trade officials use to demand protective carve-outs for US-domiciled technology companies operating in South Korea.
Pressure Builds in Washington
Political pushback in the United States has mounted steadily over the summer. A US House committee accused South Korean authorities in July of discriminating against Coupang. A US lawmaker also introduced draft legislation to sanction foreign regulators deemed to be targeting American corporations. Seoul maintains that all enforcement actions adhere strictly to domestic competition statutes, targeting business conduct rather than corporate nationality.
South Korean President Lee Jae Myung met US President Donald Trump in New York on the sidelines of the UN General Assembly to review bilateral economic cooperation.
The platform dispute remains a persistent flashpoint as both governments work to finalize the bilateral investment framework.
What Lies Ahead for Platform Rules
Attention now shifts to the FTC’s findings at Coupang headquarters and the pending rewrite of procedural inspection rules. RetailNews Asia will track whether the regulator levels formal financial penalties against the platform and how Washington incorporates tech sector protections into upcoming project rounds of the 350 billion dollar pact.