Coupang resumes partnership with LG H&H

A cargo truck enters a parking lot of Coupang's logistics center in Seocho-gu, southern Seoul. (Newsis)

South Korean e-commerce giant Coupang said Friday it will resume delivery service of LG Household & Health Care products, reinstating their partnership which has been severed for nearly five years due to a feud between the two companies.

LG H&H's household brands including Elastin, Perioe and CNP, as well as its cosmetic line-ups such as O Hui and Sum 37º, will be available on Coupang's delivery service starting mid-January, the e-commerce firm said.

A specific date was not immediately disclosed.

“Coupang has been in discussions with LG H&H on ways to resume the partnership,” said a Coupang official. “Coupang will continue to actively communicate and collaborate with its partners to provide customers with a greater choice of quality products.”

In 2019, Coupang and LG H&H suspended their businesses following a dispute sparked during delivery negotiations.

At that time, LG H&H reported Coupang to the Korea Fair Trade Commission for unfair behavior, claiming that Coupang canceled orders and terminated transactions without consultation.

The commission acknowledged Coupang’s unfair practices and imposed a fine of 3.3 billion won ($2.5 million) on the company, along with a correction order.

In response, Coupang filed an administrative lawsuit against the regulatory authority to cancel its decision. The ruling date was initially set for August 2023 but was postponed to next Thursday.

Coupang, the largest e-commerce company here, is working hard to maintain its market position, especially against Chinese e-commerce giant AliExpress. The Chinese competitor commenced its operations in South Korea last year.

Coupang is also facing conflicts with food giant CJ CheilJedang, which suspended businesses with Coupang after a controversy over delivery negotiations in 2023.

By Hwang Joo-young(flylikekite@heraldcorp.com)