Coupang Cancels Groundbreaking Ceremony Amid FTC Sanctions

Coupang, recently fined 100 billion won and facing prosecution from the Fair Trade Commission (FTC), has canceled the groundbreaking ceremony for its Busan Advanced Logistics Center.

According to local media reports, and sources within the city of Busan the distribution industry, the ceremony, originally scheduled for the 20th, was canceled, with city authorities being notified.

This move by Coupang is seen as a direct consequence of the FTC’s sanctions.

A distribution industry official stated, “The significant fines and accusations have increased business uncertainty for Coupang. This will inevitably impact their ‘100% free rocket delivery to all citizens’ initiative, which relies heavily on expanding logistics infrastructure.”

The groundbreaking event was to take place at the Busan International Industrial Logistics City in Gurang-dong, Gangseo-gu, with the Mayor of Busan, local council members, and city council members expected to attend.

With the postponement of the Busan center’s construction, Coupang is also reconsidering its plans for the Icheon and Gimcheon centers.

Earlier in March, Coupang announced plans to construct and invest in new fulfillment centers (FCs) in over eight regions, including Gimcheon, Gyeongsangbuk-do, Jecheon, Chungcheongbuk-do, Busan, Icheon, Gyeonggi-do, Cheonan, Daejeon, Gwangju, and Ulsan, aiming for completion by 2026.

The construction of the Busan FC was slated to begin in the second quarter of this year, followed by Icheon, Gimcheon, and Jecheon FCs in subsequent quarters.

However, the recent FTC sanctions have put these plans under significant review, potentially delaying or altering the scheduled investments and construction timelines.

Haps Staff
Is there something you'd like to see featured in Haps? Drop us a line: [email protected]

The Latest

broken clouds
25 ° C
25 °
25 °
94 %
75 %
25 °
24 °
27 °
26 °
27 °

Dine & Drink