South Korea fines Coupang $220 million for abusing dominance in food delivery market

South Korea's antitrust regulator said on Monday it was imposing a 300.9 billion won ($220.59 million) fine on e-commerce firm Coupang for abusing its dominant position in the food delivery market. The Korea Fair Trade Commission (FTC) said Coupang required merchants to match favourable terms offered ‌on rival platforms and penalised those that failed to comply, restricting competition in the delivery app sector.

Coupang required restaurants to match ‌six conditions, including menu prices, minimum order amounts, discounts and delivery charges, the FTC said. Restaurants that failed to comply risked losing a special designation that allowed them to offer discounts and free delivery to Coupang's paid-membership customers, it said.

The regulator said the proportion of restaurants meeting the requirements rose to nearly 94% in ⁠October 2025 ​from about 13% in July 2023. The ⁠FTC also fined Woowa Brothers, the operator of rival delivery app Baemin, 331.1 billion won for similar practices. Woowa Brothers did not immediately respond to a ⁠request for comment.

Coupang said in a statement the penalty was excessive and more than 600 times the fine imposed in a comparable 2020 case involving another ​food delivery app. It said the FTC had included revenue unrelated to the alleged conduct when calculating the fine, undermining ⁠its right of defence, and that it would challenge the decision through legal proceedings.

The ruling adds to tensions between the US-listed company and South Korean authorities, which fined ⁠Coupang ​624 billion won in June over a 2025 data breach affecting more than 33 million customers. Coupang has disputed the government's findings and handling of that case, while Republican US lawmakers have accused Seoul of discriminating against an American company, a claim South Korean officials ⁠reject.

Coupang has maintained an extensive lobbying and political operation in Washington, contributing to figures on both sides of the political aisle. US ⁠Federal Election Commission records show ⁠that its political action committee, COUPAC, gave about $379,000 to congressional candidates and political committees from the start of 2025 through September 2026.

Recent records suggest a growing emphasis on cultivating Democratic ties ahead of the ‌party's strong performance in ‌the midterm elections, although COUPAC continued to support Republicans. ($1 = 1,363.6400 won)