Watchdog slaps $2 mil. in fines on 5 parcel delivery firms for unfair contracts

Korea's antitrust watchdog on Monday imposed a combined 3 billion won ($2 million) in fines on five parcel delivery companies for violating the subcontracting law by taking advantage of their dominant position in the market. The Fair Trade Commission (FTC) said the actions come after the five companies — Coupang Logistics Services, Lotte Global Logistics Corp., CJ Logistics Corp., Hanjin Transportation Co., Ltd. and Logen Co., Ltd. — forced unfair contract terms on subcontractors while failing to issue written agreements. The investigation came amid growing demand for delivery services in South Korea, with the average number of parcel deliveries per person exceeding 100 a year since 2023. The five companies account for 90.5 percent of the market thanks to their nationwide delivery networks, the FTC said, adding that it launched the probe after allegations that they had abused their dominant market positions. For example, the companies shifted losses caused by missing or damaged parcels onto subcontractors. They also included ambiguous terms that allowed them to terminate contracts wit