Controversy Surrounds Coupang's New Emblem: A Prelude to a New Form of Exploitation?

One of South Korea's leading e-commerce platforms, Coupang, is currently facing controversy over excessive service fees and the "Awards Emblem," which is causing concerns among its suppliers. This has put Coupang in a precarious position, threatening a healthy competitive environment.

 

In response, Coupang has argued, "The Awards Emblem service is commonly used in the industry to help consumers find excellent products and support the growth of our partner companies.

 

One of Coupang's suppliers, known as "Company G," recently received contact from Coupang's Brand Manager (BM). However, the communication left Company G confused as Coupang introduced a new requirement for suppliers who were awarded the "Awards Emblem" in June. According to Coupang, in order to maintain this emblem, additional fees must be paid. Company G expressed its confusion, stating, "Coupang, which has been receiving money under various pretexts such as advertising fees and sales incentives, seems to have introduced a new method. This could be considered a new form of exploitation."

 

This controversy stems from Coupang's introduction of a new system called the "Awards Emblem" to its supplier network. The Awards Emblem certifies top-selling products based on comprehensive evaluations of sales, revenue, and review counts, utilizing consumer purchase data. Initially, this service was provided for free, but starting from July, suppliers were required to pay fees for it, ranging from an average of 1.2 million to 1.8 million KRW per month.

 

Another supplier, known as "Company N," reported a similar experience, stating, "In June, we suddenly received the emblem for free, thinking it would help with sales. However, in July, the Coupang BM demanded payment. When we refused to remove the emblem, they threatened to pressure us into reducing our supply prices."

 

Another supplier, "Company D," added, "Coupang's BM insisted on forcing us to use the emblem by claiming that the supplier commission rate was too low. In our position as suppliers, how could we refuse?"

 

Coupang has also faced controversy regarding its recently introduced paid survey program, "Rocket Survey." This service involves surveys targeting customers who use Rocket Delivery, and sellers have to pay a significant amount to use this service. One supplier, "Company L," questioned this practice, saying, "The BM even called me separately to discuss Rocket Survey, putting pressure on us. In a world where data becomes 'money,' isn't it a form of exploitation to use this as leverage to force suppliers?"

 

Coupang's actions appear to have potential violations of fair trade regulations. Using its dominant position as a platform to pressure other businesses into using paid services could be seen as an abuse of power that harms other businesses.

 

In response, Coupang has argued, "The Awards Emblem service is commonly used in the industry to help consumers find excellent products and support the growth of our partner companies." However, the controversy remains unresolved, and it seems that Coupang will need to make efforts to improve its relationship with suppliers.