Homeplus, Coupang Inc face scrutiny at National Assembly audit

Allegations of unfair trade practices in the retail and platform industries — including the Homeplus crisis and suspicions that Coupang Inc shifted discount coupon costs onto suppliers — are set to come under scrutiny at the National Assembly's national audit Monday.

The Assembly's Policy Committee will audit the Korea Fair Trade Commission, the Korea Consumer Agency and the Korea Fair Trade Mediation Agency. Witnesses called to testify include Homeplus CEO Cho Ju-yeon, Coupang Inc Executive Vice President Joo Sung-won, Woowa Brothers Vice President Kim Yong-seok and GS Retail Vice President Oh Jin-seok.

The committee is expected to focus heavily on Homeplus's unpaid supplier payments. The hypermarket chain narrowly avoided liquidation last month after a court approved its rehabilitation plan, but a sharp drop in sales has disrupted its ability to pay suppliers. Its outstanding supplier debt stands at 503.2 billion won ($376 million), to be repaid in installments between 2028 and 2030.

Homeplus is accepting applications for voluntary redundancy through Oct. 22, with departures to be processed by the end of this month, prompting questions about the possibility of further restructuring. The potential sale of store locations and mergers and acquisitions in the hypermarket sector are also expected to draw attention, as is the question of accountability for majority shareholder MBK Partners.

Coupang Inc is under investigation by the Fair Trade Commission over allegations that it improperly passed the costs of promotional discounts onto suppliers. The company has also been at odds with the commission over an on-site inspection. When investigators arrived at Coupang Inc's offices on Aug. 19, the company refused to cooperate, claiming it had not received written notice seven days before the inspection — an unprecedented move. Coupang Inc subsequently filed a lawsuit seeking to cancel the inspection order and applied for a stay of execution, but both were rejected, and the company has since filed a further appeal.

GS Retail will face questions over the procurement practices of its convenience store chain GS25, with lawmakers expected to examine whether the company improperly burdened suppliers with promotional costs. GS Retail is also scheduled to have its home shopping supplier trade terms reviewed at a separate audit by the Korea Communications Commission the same day.

Meanwhile, the trade terms and commission policies that delivery platforms such as Baemin and Coupang Eats impose on partner restaurants are also among the key issues on the agenda. Broader questions about the Fair Trade Commission's oversight functions and measures to improve conditions for small and midsize suppliers and self-employed business owners are also expected to be discussed.