On October 13, 2025, the South Korean National Assembly launched its second major government audit of the year, casting a sharp spotlight on the country’s booming retail and platform industry. Coupang, the e-commerce giant often dubbed the "Amazon of Korea," found itself at the center of the storm, facing the unenviable distinction of having the highest number of summoned witnesses among major retail companies. The audit, which follows the Chuseok holiday, is set to scrutinize not only Coupang’s business practices but also those of other major players like Homeplus, Daiso, Musinsa, and Baemin, as reported by Yonhap News.
The focus on Coupang is hardly accidental. Over the past year, the company’s rapid expansion and increasing influence across politics, business, and media have drawn both admiration and suspicion. Despite recently bolstering its government relations team—most notably by appointing Kim Jeong-seok, a former Samsung executive with decades of experience in public affairs, as vice president of communications—Coupang has been unable to dodge the current wave of scrutiny. According to Yonhap News, the company’s government relations division now numbers in the dozens, reflecting the high stakes of navigating Korea’s complex regulatory landscape.
The audit’s opening salvo targeted Coupang’s delivery business, which, according to government findings, exhibited irregularities at four out of five inspected business sites. The investigation delved into the company’s national certification for its delivery operations, with lawmakers questioning whether Coupang had concealed issues from previous inspections. While the company asserted that recent government checks had uncovered no problems, it was revealed that the full results of the national government’s investigation had not been made public, fueling further suspicion.
Park Dae-jun, Coupang’s representative director, was kept busy, appearing before three separate parliamentary committees overseeing industry, science, and agriculture. He faced a barrage of questions about Coupang’s settlement methods, commission structures, and the fairness of its dealings with sellers and delivery workers. "We are committed to transparency and fair practices across all our business lines," Park stated, emphasizing the company’s efforts to comply with evolving regulations.
On October 14, Coupang Inc. president Kim Beom-seok was summoned to the National Policy Committee, where he confirmed that irregularities had been found in the delivery business, platform operations, and related areas. Kim sought to reassure lawmakers and the public, stating, "There is no intention to export or outsource our delivery business." He also clarified that the overseas subsidiary, Bangchi Public, was directly related to the headquarters’ delivery operations and not an attempt to circumvent Korean regulations.
The audit also drew in other top Coupang executives. Jeong Jong-cheon, representative of Coupang CFS, and Kim Myung-gyun, CEO of Coupang Eats, both confirmed they had received individual inquiries related to platform irregularities and labor issues. Labor conditions, in particular, have become a flashpoint in Korea’s fast-paced delivery sector, with lawmakers pressing Coupang and its rivals about efforts to improve working conditions for day laborers and reduce incidents of workplace abuse.
But Coupang was not alone in the hot seat. The audit’s witness list read like a who’s who of Korea’s retail and platform industry. Executives from Daiso, Musinsa, W Concept, Baemin, and several major food and beverage franchises were summoned to address issues ranging from unfair commission practices to allegations of monopolistic behavior and labor rights violations. At the same time, the government’s cross-agency investigation extended to logistics, production, and even the digital transformation initiatives touted by these companies.
Homeplus and its private equity owner MBK Partners were also under the microscope. On June 12, a meeting between Coupang, MBK Partners, and other industry stakeholders had already set the stage for questions about supply contracts and the treatment of small business partners. MBK’s chairman, Kim Byung-joo, was scheduled to appear at a hearing on October 30 to answer questions about the consolidation of Homeplus and the impact on workers. The government’s audit found that approximately 30% of Homeplus shares had been pledged as collateral, prompting a call for a revaluation of these assets.
Meanwhile, the government’s review of platform business irregularities showed no sign of letting up. According to Yonhap News, the audit included a thorough inspection of Coupang’s headquarters, production facilities, and logistics centers. Four out of five Coupang business sites were inspected, with particular attention paid to the company’s documentation and delivery processes. Lawmakers were especially interested in the fairness of online platform commission structures and whether sellers and workers were being treated equitably.
Notably, Coupang’s financial performance has remained robust despite the regulatory headwinds. In the second quarter of 2025, Coupang reported operating profits exceeding 200 billion won and record sales of nearly 12 trillion won—up 19% from the previous year. The company’s listing on the New York Stock Exchange has only heightened its profile, drawing further attention to its business practices both at home and abroad.
Yet, the audit’s reach extended beyond Coupang and Homeplus. Executives from Lotte, Shinsegae, Hyundai Department Store, SPC, McDonald’s Korea, and The Born Korea were also summoned to address a wide array of issues. These ranged from the sale of pesticide-laced tea and improper labor practices to allegations of unfair business dealings and the tragic death of a delivery driver at an SPC warehouse in Seoul. Each case underscored the growing pains of Korea’s rapidly evolving retail and platform sector—and the government’s determination to hold industry leaders accountable.
For Coupang, the current audit represents both a challenge and an opportunity. The company’s expansion into new markets, investments in digital transformation, and efforts to support traditional markets and local farmers have drawn praise in some quarters. Still, the sheer volume of government scrutiny suggests that the road ahead will not be easy. As the audit continues, with further hearings scheduled for October 30 and beyond, all eyes remain on how Coupang and its peers will respond to mounting demands for transparency, fairness, and corporate responsibility.
In the end, the 2025 government audit has become a litmus test for Korea’s platform economy. The outcome will not only shape the future of Coupang and its rivals but also set the tone for the relationship between business and government in one of Asia’s most dynamic markets.