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Stock impact report

South Korea watchdog fines Coupang $1.6 million for pressuring suppliers, delaying payments [Yahoo! Finance]

Coupang, Inc. Class A (CPNG) 
Company Research Source: Yahoo! Finance
SEOUL, Feb 26 (Reuters) - South Korea's antitrust regulator said on Thursday it has fined Coupang 2.2 billion won ($1.55 million) for pressuring ?suppliers to cut prices and shoulder additional costs to meet profit ?margins, as well as for delaying payments to vendors. The Korea Fair Trade Commission (KFTC) said the ?e-commerce giant violated the country's large-scale retail business law by demanding reductions in supply prices and requiring suppliers to bear advertising and other fees in order to achieve margin targets set by the company. "As the overwhelming No.1 ?market leader, Coupang forced suppliers ?to bear sacrifices in order to maintain its profit margins and used retaliatory measures such as suspending or reducing ?orders when suppliers refused or were uncooperative," the regulator said in a statement. When suppliers failed to meet targets, Coupang at times negotiated or demanded lower ?supply prices, ?and suspended or reduced orders, or ?implied it would do so ?to pr Show less Read more
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