$220 million fine for South Korea's food ordering giant. Could spoil relations with the USA

South Korea's competition authority, the Korean Fair Trade Commission (FTC), fined e-commerce giant Coupang and Woowa Brothers, the operator of rival platform Baemin, a total of 631.9 billion won, on the grounds that they hindered competition by abusing their dominant position in the food ordering market.

According to the decision of the commission, an interim fine of 300.9 billion won (approximately $220.59 million) was imposed on Coupang company.

Sanctions worth 331.1 billion won were imposed on Woowa Brothers, the company that hosts the Baemin platform, which is the other major actor in the industry in terms of market share, on similar grounds.

SIX SEPARATE CONDITIONS WERE IMPOSED ON RESTAURANTS

Two companies that control more than 90 percent of the online food ordering market imposed conditions on member restaurants that went against business practices, according to an investigation by South Korea's competition authority.

It was reported that the Coupang platform requested restaurants to match the most advantageous conditions on rival platforms in its system under six different headings, including menu prices, minimum order amounts, discounts and delivery fees, between July 2023 and January this year.

It was noted that restaurants that do not comply with these rules are punished by being deprived of promotional privileges such as discounts and free delivery for customers with paid memberships.

The commission found that the proportion of restaurants meeting the requirements imposed by Coupang increased from approximately 13 percent in July 2023 to almost 94 percent by October 2025.

Similarly, it was reported that Woowa Brothers company imposed unfair commercial conditions on restaurants, especially minimum order amounts, between May 2024 and October 2025.

The competition authority announced that the two platforms abused their dominance in the market and restricted the commercial activities of restaurants and competitors.

It was announced that the practice increases commission rates and menu prices, creates an obstacle to the entry of new actors into the market, and directly harms consumer welfare.

It was stated that the final penalty amounts will be clarified before the institution publishes its reasoned written decision, but no timetable has been determined for this.