South Korea's National Tax Service launches special tax investigation into e-commerce giant Coupang

It has been revealed that South Korea's National Tax Service is conducting a special tax investigation into Coupang, a major e-commerce platform company.
According to industry sources on the 12th, the Seoul Regional Taxation Office's International Transactions Investigation Bureau filed a lawsuit against Seoul-based Coupang last month.
The agency dispatched investigators to collect tax-related materials. The agency's International Trade Investigation Bureau is known for irregularly conducting special tax investigations into specific issues, such as overseas tax evasion.
The investigation into Coupang Inc. is seen as part of that effort. The NTS is said to be investigating transactions between Coupang Inc., the parent company of Coupang, and its affiliates.
Delaware, where Coupang is registered, is known as a favorable tax jurisdiction. Coupang Inc. owns all of Coupang Korea's shares.
On the other hand, Coupan acknowledges the fact of the tax investigation, but denies that it is a special tax investigation.
They have denied the allegations and stated that it was a "normal tax investigation." Furthermore, Coupan is currently under investigation by the Japan Fair Trade Commission for allegedly violating the Fair Trade Act and the Subcontract Act.
The Fair Trade Commission began an on-site investigation at Coupang's headquarters on the 7th regarding suspicions that Coupang had made inadequate notices of cancellations.
The allegations of unfair preferential treatment of Coupang's own brand products will be discussed at a plenary session of the Fair Trade Commission.
The Fair Trade Commission believes that Coupang has prioritized its own brand products regardless of the ranking calculation criteria, which is an unfair customer inducement practice that misleads consumers.