Seoul: Corporate fines imposed by South Korea's antitrust regulator soared by 26 percent in 2024 compared to the previous year, with e-commerce giant Coupang Inc. receiving the largest penalty, a corporate data tracker reported Wednesday. The Fair Trade Commission levied fines totaling 550.15 billion won (US$384 million) on domestic companies for engaging in unfair market practices, an increase from 434.98 billion won in 2023.
According to Yonhap News Agency, Coupang and its subsidiary, Coupang Private Label Brands, were at the forefront, receiving a combined fine of 140.1 billion won. This penalty was due to their use of unfair search algorithms and the dissemination of false product reviews, which were employed to enhance the sales of their private-label items.
Kakao Mobility Corp., the country's premier taxi-hailing service operator, was fined 72.4 billion won. The company faced accusations of manipulating its algorithm to channel more ride requests, received through its mobile taxi application, to cabs within its franchise network.
CJ Freshway Corp. was fined 24.5 billion won for allegedly providing unfair support to an affiliate, aimed at reinforcing its status as a leading food distributor for local merchants.
In total, 11 companies were penalized with fines exceeding 10 billion won last year, reflecting a significant regulatory crackdown on unfair business practices, as noted by CEO Score.