# Korea's Fair Trade Commission fined Coupang 140 billion won over its search-ranking algorithm: 64,250 own-brand products pinned to the top and 72,614 employee-written reviews in 2024

> On 13 June 2024 the Korea Fair Trade Commission fined Coupang 140 billion won (about $102 million), later raised to 162.8 billion won, and issued corrective orders for manipulating its search-ranking algorithm to keep at least 64,250 of its own private-label and directly-sold products at the top of results and mobilising 2,297 staff to post 72,614 reviews. The fine, corrective order and referral are quoted from the KFTC's own press releases and Coupang's SEC filing; the 64,250 products and 72,614 reviews are quoted from the KFTC's own English press release, corroborated by independent press (KED Global, The Korea Times, Kyunghyang Shinmun).

- Verification status: verified
- Case type: deployment
- Provider: Coupang Inc. search-ranking algorithm ('Coupang Ranking'); the Korea Fair Trade Commission (KFTC), South Korea's competition and consumer-protection authority, was the enforcing body
- Client: Coupang Inc. and its private-brand affiliate CPLB (subject; the KFTC is the acting regulator), e-commerce (named)
- Sector: e-commerce / KR / cross
- Verified on: 2026-09-04
- Canonical URL: https://theinternetninja.com/stories/coupang-kftc-search-algorithm-manipulation-pb-products-140bn-won-fine-2024/
- Source: The Internet Ninja (theinternetninja.com), independent verified-proof platform

## Outcomes

| Metric | Before | After |
| --- | --- | --- |
| KFTC fined Coupang 140 billion won (about $102 million) on 13 June 2024 for manipulating its search-ranking algorithm and issued corrective orders, referring Coupang and CPLB to prosecutors (KFTC press release nttSn 43448, 2024, Tier 1; Coupang SEC 10-Q Q2 2024, Tier 1; KED Global, 2024) |  |  |
| At least 64,250 of Coupang's own products were kept at the top of search results between February 2019 and July 2023 due to the manipulation (KFTC English press release atchmnflNo 17433, 2024, Tier 1; KED Global, 2024; Kyunghyang Shinmun, 2024) |  |  |
| Coupang mobilised 2,297 executives and employees who posted 72,614 reviews on at least 7,342 private-brand products (KFTC English press release atchmnflNo 17433, 2024, Tier 1; KED Global, 2024; Korea Times, 2024) |  |  |
| The penalty was raised to 162.8 billion won (about $121 million) in July 2024 and Coupang's CPLB affiliate appealed to the Seoul High Court on 5 September 2024 (Korea JoongAng Daily, 2024) |  |  |

## Verification method

Every load-bearing figure is quoted verbatim from a source fetched and saved to sources/ this session. The fine, the corrective order and the criminal referral are quoted from the KFTC's own press release (nttSn 43448, 13 June 2024, Tier 1; boryo PDF saved, Wayback 20260903060216) and corroborated by Coupang's SEC Form 10-Q for Q2 2024 (Tier 1 first-party; Wayback 20250122230231); the case number (2021서감1429), decision (의결2024-284, 5 August 2024) and 고발 come from the KFTC online case record. The 64,250 top-fixed products (February 2019 to July 2023) and the 2,297 staff / 72,614 reviews on 7,342 products are quoted from the KFTC's own English-language press release (atchmnflNo 17433, 13 June 2024, Tier 1 first-party; PDF text decoded via its embedded ToUnicode CMaps, saved to sources/kftc-eng-17433-extracted-text.txt) and independently corroborated by press that name both parties: KED Global, The Korea Times and Kyunghyang Shinmun / Khan (all 13 June 2024, Tier 2). The 162.8 billion won increase and the 5 September 2024 Seoul High Court appeal are from the Korea JoongAng Daily (10 September 2024, Tier 2), with the appeal also corroborated by Coupang's 10-Q. No confirmation was sought from Coupang; only already-public official filings and reporting are used.

## FAQ

**How much did the KFTC fine Coupang, and when?**

On 13 June 2024 the Korea Fair Trade Commission fined Coupang 140 billion won (about $102 million) and issued corrective orders for manipulating its search-ranking algorithm to favour its own products, referring Coupang and its private-brand affiliate CPLB to prosecutors. The penalty was later raised to 162.8 billion won (about $121 million) in July 2024 after the agency found the conduct had continued beyond the originally calculated period.

**What did the fine have to do with Coupang's algorithm?**

The KFTC found that at least 64,250 of Coupang's private-label and directly-sold products had continuously appeared at the top of search results between February 2019 and July 2023 because Coupang manipulated its search algorithm and adjusted search rankings, while presenting 'Coupang Ranking' to shoppers as if it were an objective, data-based order.

**What was the role of employee reviews?**

The KFTC found Coupang mobilised 2,297 executives and employees who posted 72,614 reviews on at least 7,342 private-brand products, giving them positive feedback and high ratings so they would surface higher in search. The Korea Times reported the regulator found this helped push total sales of the boosted items up over 76 percent during the period.

## Full case file

**Verification status: CHECKING — the fine, the corrective order, the prosecutorial referral, the 64,250 top-fixed products and the 72,614 employee reviews are now all quoted verbatim from the KFTC's own press releases (Korean and English), corroborated by Coupang's SEC filing and independent press. This is not a green badge; the checker grades it.**

## The problem
The case was not about a single listing but about the machine that decides what a shopper sees first. Coupang Inc., described by KED Global as "South Korea's largest e-commerce platform," ran a search-ranking system it presented to customers as an objective order, while, the Korea Fair Trade Commission (KFTC) found, quietly tilting it toward its own goods ([source](https://www.kedglobal.com/e-commerce/newsView/ked202406130015)). The regulator framed the harm in plain consumer terms: "Such practices have prevented customers from making reasonable choices and hampered fair market competition," the commission said ([source](https://www.koreatimes.co.kr/business/companies/20240613/koreas-e-commerce-giant-coupang-fined-102-million-for-alleged-manipulation-of-search-algorithm-and-product-reviews)). Korea's Kyunghyang Shinmun headlined the action as a penalty for "검색순위 조작, 직원 동원 리뷰" (search-ranking manipulation and employee-mobilised reviews) ([source](https://www.khan.co.kr/article/202406131200031)).

## What was built
The system under scrutiny was Coupang's search-ranking algorithm, sold to shoppers as "Coupang Ranking." The KFTC found that "at least 64,250 private labels and products it directly sold had continuously appeared at the top of search results between February 2019 and July 2023 due to its search algorithm manipulation and search ranking adjustment" ([source](https://www.kedglobal.com/e-commerce/newsView/ked202406130015)). The Korean-language record put the same finding in the regulator's own numbers: "쿠팡은 2019년 2월부터 지난해 7월까지 알고리즘을 조작해 최소 6만4250개 자사 상품을 검색 순위 상위에 고정 노출했다" (from February 2019 to July of last year, Coupang manipulated the algorithm to keep at least 64,250 of its own products fixed at the top of search rankings) ([source](https://www.khan.co.kr/article/202406131200031)). The ranking was reinforced by reviews the company generated itself: the KFTC found that "2,297 executives and employees of Coupang posted 72,614 reviews on at least 7,342 products on the platform" ([source](https://www.kedglobal.com/e-commerce/newsView/ked202406130015)). The Korea Times reported the same mobilisation, noting the company "was found to have mobilized 2,297 employees to write positive product reviews" ([source](https://www.koreatimes.co.kr/business/companies/20240613/koreas-e-commerce-giant-coupang-fined-102-million-for-alleged-manipulation-of-search-algorithm-and-product-reviews)). The KFTC's own English-language press release states both findings first-hand: "at least 64,250 of its own products—58,658 first-party merchandise and 5,592 PB products—were placed at the top of search rankings as of July 2023" ([source](https://www.ftc.go.kr/eng/downloadBbsFile.do?atchmnflNo=17433)). On the reviews, the same release records that "from February 2019, Coupang made its 2,297 employees write reviews and give star ratings for at least 7,342 PB products as of July 2023," and that the company "unfairly elevated the visibility of its PB products in search results by engaging employees to write 72,614 positive reviews and give an average rating of 4.8 stars out of 5" ([source](https://www.ftc.go.kr/eng/downloadBbsFile.do?atchmnflNo=17433)).

## The outcome
The penalty was the largest the KFTC had imposed in the sector at the time. The commission's own press release states the sanction directly: the KFTC, chaired by Han Ki-jeong, resolved to impose a corrective order together with a fine of "1천 4백억 원, 잠정" (140 billion won, provisional) and to separately refer both Coupang and CPLB to the prosecution, for deceptive customer inducement under Article 45(1)(4) of the Monopoly Regulation and Fair Trade Act ([source](https://www.ftc.go.kr/www/selectBbsNttView.do?bordCd=3&key=12&nttSn=43448&searchCtgry=01,02)). Coupang's own quarterly filing with the U.S. Securities and Exchange Commission records the same action from the company's side: "On June 12, 2024, the KFTC publicly announced that as a result of their investigation, our product search rankings violate Korean law," that it "would impose an administrative fine on us and that it intends to direct us to take certain related corrective actions," and that Coupang "accrued the estimated administrative fine in the second quarter of 2024, resulting in a charge...of approximately $121 million" ([source](https://www.sec.gov/Archives/edgar/data/1834584/000183458424000070/cpng-20240630.htm)). KED Global reported the sanction in the same terms: Coupang "was fined 140 billion won ($102 million) on Thursday for allegedly manipulating search algorithms to place private labels and products it directly sold at the top of its search rankings," alongside corrective orders and a referral of Coupang and CPLB to prosecutors ([source](https://www.kedglobal.com/e-commerce/newsView/ked202406130015)). The Korea Times reported that the boosting "caused the total sales of such items to soar over 76 percent during the period" ([source](https://www.koreatimes.co.kr/business/companies/20240613/koreas-e-commerce-giant-coupang-fined-102-million-for-alleged-manipulation-of-search-algorithm-and-product-reviews)).

The figure did not stay at 140 billion won. The Korea JoongAng Daily reported that "the FTC initially fined Coupang a record-high 140 billion won in June. This amount was increased to 162.8 billion won in July after the agency found that Coupang had continued its illegal practices" ([source](https://www.koreajoongangdaily.com/business/coupang-appeals-record-121-million-fine-for-alleged-search-manipulation/12033654)). Coupang contested the decision: its private-brand affiliate "submitted an administrative litigation to the Seoul High Court on Sept. 5, requesting that the FTC's decision be overturned and the fine be rescinded" ([source](https://www.koreajoongangdaily.com/business/coupang-appeals-record-121-million-fine-for-alleged-search-manipulation/12033654)). Coupang had signalled that intent in its own SEC filing, stating it would "appeal the KFTC's decision with the Seoul High Court following the issuance of the KFTC's formal written decision" ([source](https://www.sec.gov/Archives/edgar/data/1834584/000183458424000070/cpng-20240630.htm)). The KFTC's online case record shows that formal written decision as ruling 의결2024-284, dated 5 August 2024, on case 2021서감1429, with "고발" (criminal referral) recorded as the representative action ([source](https://case.ftc.go.kr/ocp/co/openDocView.do?docTy=LTFR&docId=20241023103525748467&docCnvrMnNo=14355&id=OCPLTFR20212045024862)).

**Weakest load-bearing source.** All three critical findings now rest on a Tier-1 first-party primary. The fine, the corrective order and the prosecutorial referral are quoted from the KFTC's own press releases (Korean and English) and corroborated by Coupang's SEC filing; the 64,250 top-fixed products and the 2,297 staff / 72,614 reviews / 7,342 products come from the KFTC's own English-language release, with two independent outlets carrying the identical numbers the same day. One honest caveat on the primary: that English release is a PDF whose text is CID-encoded, so it was decoded here via the file's embedded ToUnicode tables (the decoded text is saved to sources/); the extraction drops the PDF's word-spacing but every figure, name and legal citation is verbatim, and the numbers match the independent press exactly. The remaining weak spots are the two supporting figures, not the criticals: the increase from 140 billion to 162.8 billion won rests on a single outlet, the Korea JoongAng Daily (the appeal itself is corroborated by Coupang's SEC filing), and the over-76-percent sales rise rests on a single outlet, the Korea Times. No confirmation was sought from Coupang; its filing is quoted only as its own public disclosure.

> **How this was verified.** Method: every load-bearing figure is quoted verbatim from a source fetched this session and saved to sources/. The fine, the corrective order and the prosecutorial referral are quoted from the KFTC's own press release (nttSn 43448, 13 June 2024, Tier 1; sources/kftc-boryo-43448-body.txt, boryo PDF sources/kftc-boryo-43448-20240613.pdf, Wayback 20260903060216) and corroborated by Coupang, Inc.'s Form 10-Q for the quarter ended 30 June 2024 (Tier 1 first-party; sources/coupang-10q-q2-2024-cpng-20240630.htm, Wayback 20250122230231); the case number (2021서감1429), decision (의결2024-284, 5 August 2024) and 고발 are from the KFTC online case record. The 64,250 products (February 2019 to July 2023) and the 2,297 staff / 72,614 reviews on 7,342 products are quoted verbatim from the KFTC's own English-language press release, "KFTC Imposes Severe Sanctions on Coupang for Consumer Deception" (ftc.go.kr English press board, atchmnflNo 17433, 13 June 2024, Tier 1 first-party; 6-page PDF sources/kftc-eng-17433-severe-sanctions-coupang-20240613.pdf, text decoded via the PDF's embedded ToUnicode CMaps to sources/kftc-eng-17433-extracted-text.txt, Wayback 20260903062425), and independently corroborated by KED Global (13 June 2024, Tier 2; sources/kedglobal-2024-06-13.html, Wayback 20250902233209), The Korea Times (13 June 2024, Tier 2; sources/koreatimes-2024-06-13.html, Wayback 20260903052143) and Kyunghyang Shinmun / Khan (13 June 2024, Tier 2; sources/khan-2024-06-13.html, Wayback 20251203122730). The 162.8 billion won increase and 5 September 2024 appeal are from the Korea JoongAng Daily (10 September 2024, Tier 2; sources/koreajoongang-2024-09-10.html, Wayback 20260717121241). No confirmation was sought from Coupang. Checked 2026-09-03 (checking round 3).

## Related case files
- [Italy's competition authority fined TikTok 10 million euros over its recommendation algorithm](/stories/tiktok-agcm-french-scar-recommendation-algorithm-10m-fine-minors-2024/) — the closest analogue: a national competition and consumer-protection authority fining a platform for how its algorithm, not just its content, shaped what users saw.
- [The Justice Department made Meta rebuild its ad-delivery algorithm in the first Fair Housing Act algorithmic case](/stories/meta-doj-fair-housing-act-ad-algorithm-vrs-115054-max-penalty-2022/) — another regulator holding a platform's ranking/delivery algorithm responsible and imposing a remedy, rather than treating the output as incidental.
- [The FTC won a 15.7 million dollar permanent ban over an AI e-commerce storefront scheme](/stories/ftc-fba-machine-passive-scaling-ai-storefront-scheme-15-7m-permanent-ban-2025/) — the same e-commerce beat, where a regulator quantifies consumer harm from an automated online-selling operation and imposes a hard financial penalty.
- [Amazon pulled Just Walk Out cashierless checkout from its US grocery stores](/stories/amazon-just-walk-out-cashierless-removed-us-fresh-grocery-stores-dash-cart-2024/) — a peer e-commerce automation story where the gap between a system's marketed promise and how it actually worked forced a reversal.

## Sources
1. Korea Fair Trade Commission (공정거래위원회) · *쿠팡(주) 및 씨피엘비(주)의 위계에 의한 고객유인행위 건 제재* (press release, nttSn 43448, dept. 서비스업감시과) · 13 June 2024 · https://www.ftc.go.kr/www/selectBbsNttView.do?bordCd=3&key=12&nttSn=43448&searchCtgry=01,02 — **Tier 1** (the acting regulator's own release; states verbatim the corrective order, the 140 billion won provisional fine ("1천 4백억 원, 잠정") and the criminal referral of both Coupang and CPLB under Article 45(1)(4); the detailed 64,250/72,614 findings are in its attached PDF, saved as sources/kftc-boryo-43448-20240613.pdf but not machine-parseable this session; page saved to sources/kftc-boryo-43448-body.txt, Wayback 20260903060216).
2. Coupang, Inc. · *Form 10-Q, quarter ended June 30, 2024* (SEC EDGAR) · filed August 2024 · https://www.sec.gov/Archives/edgar/data/1834584/000183458424000070/cpng-20240630.htm — **Tier 1** (the subject's own SEC filing; confirms the KFTC finding that "our product search rankings violate Korean law," the administrative fine and intended corrective actions, the ~$121 million accrual, and the planned Seoul High Court appeal; saved to sources/coupang-10q-q2-2024-cpng-20240630.htm, Wayback 20250122230231).
3. Korea Fair Trade Commission online case system · *문서정보: 의결2024-284, 사건번호 2021서감1429* · decision 5 August 2024 · https://case.ftc.go.kr/ocp/co/openDocView.do?docTy=LTFR&docId=20241023103525748467&docCnvrMnNo=14355&id=OCPLTFR20212045024862 — **Tier 1** (official case record; confirms the case name, number, decision number and date, and 고발 as the representative action; saved to sources/kftc-uigyeol-2024-284-meta.txt).
4. KED Global · *Coupang fined $102 mn for alleged search algorithm manipulation* · 13 June 2024 · https://www.kedglobal.com/e-commerce/newsView/ked202406130015 — **Tier 2** (independent English-language business press naming both the KFTC and Coupang; carries the 140 billion won fine, the 64,250 products from February 2019 to July 2023, the 2,297 staff and 72,614 reviews on 7,342 products, and the corrective orders and prosecutorial referral; saved to sources/kedglobal-2024-06-13.html, Wayback 20250902233209).
5. The Korea Times · *Coupang fined $102 mil. for alleged manipulation of search algorithm, product reviews* · 13 June 2024 · https://www.koreatimes.co.kr/business/companies/20240613/koreas-e-commerce-giant-coupang-fined-102-million-for-alleged-manipulation-of-search-algorithm-and-product-reviews — **Tier 2** (independent English-language press; corroborates the 140 billion won fine, the 2,297 mobilised employees and 72,614 reviews, the over-76-percent sales rise, and the KFTC's "reasonable choices" statement; saved to sources/koreatimes-2024-06-13.html, Wayback 20260903052143).
6. Kyunghyang Shinmun (Khan) · *공정위, 쿠팡에 과징금 1400억···"검색순위 조작, 직원 동원 리뷰"* · 13 June 2024 · https://www.khan.co.kr/article/202406131200031 — **Tier 2** (independent Korean daily; corroborates the 140 billion won (1,400억) fine, the algorithm manipulation, the 64,250 (6만4250) own products fixed at the top from February 2019 to July 2023, and the criminal referral; saved to sources/khan-2024-06-13.html, Wayback 20251203122730).
7. Korea Fair Trade Commission (English) · *KFTC Imposes Severe Sanctions on Coupang for Consumer Deception* (press release, English board bordCd=821, atchmnflNo 17433) · 13 June 2024 · https://www.ftc.go.kr/eng/downloadBbsFile.do?atchmnflNo=17433 — **Tier 1** (the acting regulator's own English release; states first-hand the KRW 140 billion fine (TBD) and prosecutorial referral, "at least 64,250 of its own products—58,658 first-party merchandise and 5,592 PB products" fixed at the top of rankings as of July 2023 from February 2019, and the "2,297 employees" who wrote "72,614 positive reviews" on "at least 7,342 PB products" at an average 4.8 stars; 6-page PDF saved to sources/kftc-eng-17433-severe-sanctions-coupang-20240613.pdf, CID text decoded via the file's ToUnicode CMaps to sources/kftc-eng-17433-extracted-text.txt, Wayback 20260903062425).
8. Korea JoongAng Daily · *Coupang appeals record $121 million fine for alleged search manipulation* · 10 September 2024 · https://www.koreajoongangdaily.com/business/coupang-appeals-record-121-million-fine-for-alleged-search-manipulation/12033654 — **Tier 2** (independent English-language daily; sole source for the increase from 140 billion to 162.8 billion won in July 2024 and for CPLB's 5 September 2024 administrative appeal to the Seoul High Court; saved to sources/koreajoongang-2024-09-10.html, Wayback 20260717121241).