Coupang’s defiant threat to suspend the “missile delivery” service raises eyebrows

SEOUL, June 17 (Korea Bizwire) – In a bold move that has sparked speculation in South Korea’s e-commerce industry, Coupang, the country’s largest online retailer, has hinted at the possibility of suspending its highly praised “Rocket Delivery” service. The threat comes in the wake of a record 140 billion won fine imposed on the company by the country’s Fair Trade Commission (FTC).

According to industry sources, Coupang canceled the groundbreaking ceremony scheduled for June 20 for a new logistics center in Busan and temporarily suspended planned investments. The company quickly announced its intention to file an administrative lawsuit challenging the FTC’s decision, signaling its reluctance to make additional investments until regulatory uncertainty is resolved.

There are growing concerns at New York Stock Exchange-listed Coupang that a high fine imposed by the South Korean government could hamper foreign investment. The penalty is seen as a potential deterrent to foreign investors, introducing an element of unpredictability in the company’s domestic market.

In a June 14 filing with the U.S. Securities and Exchange Commission (SEC), Coupang Inc. stated: “The FTC has determined that Coupang’s search and ranking methods, which are consistent across all e-commerce operators in Korea and abroad, violate Korean law.” The company added: “We intend to vigorously challenge the FTC’s decision in court.”

Other e-commerce players that have prominently displayed their private label products are also concerned about potential side effects. The FTC has announced its intention to monitor unfair consumer fraud practices in the online shopping market.

Since the FTC’s June 13 announcement, Coupang has issued multiple statements, taking a combative stance against regulatory action. While suspending the iconic “Rocket Delivery” service would be an extreme measure, industry analysts believe its actual implementation is unlikely. Some interpret Coupang’s threats as a fight against public opinion, using the potential inconvenience to 14 million paid subscribers as leverage against the FTC.

Over the past decade, Coupang has invested approximately 6.2 trillion won to build more than 100 logistics facilities across the country to support its “Rocket Delivery” service. An industry insider commented: “It’s hard to imagine that Coupang, which has grown with “Rocket Delivery,” would abandon it. The company’s desire to influence public opinion in this fight against government agencies is evident.”

Ashley Song ([email protected])