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Coupang, the Democratic Party and the monster of monopoly

Published: 12 Dec. 2025, 00:02

Lee Sang-ryeol

The author is a senior editorial writer at the JoongAng Ilbo.

Coupang, once viewed as an everyday essential, has become a national source of stress. Personal information belonging to 33.7 million users has been leaked, and no one knows how or where that data may be exploited. More troubling is the position of the many small merchants who sell through Coupang. They face customer complaints and cancellations, yet most say they cannot afford to pull out of the platform. When crises erupt, it is the most vulnerable who suffer first and most. That is one of modern capitalism’s enduring weaknesses.

Coupang delivery packs are seen outside a building in Jung District, central Seoul on Dec. 2. [NEWS1]

Coupang’s power lies in its dominance. The company has effectively taken control of the dawn delivery market, used by roughly 20 million people. Rivals such as Market Kurly exist, but none come close.

Monopoly is not limited to industry. In politics, the extreme form of monopoly is authoritarian rule. A party with a legislative majority can dominate the lawmaking process. That is what the Democratic Party (DP) is demonstrating today. The party is pushing ahead with a special tribunal for insurrection cases and a new charge for “distortion of law,” proposals that Supreme Court justices, front line judges, the Korean Bar Association and legal scholars all warn would undermine judicial independence and the separation of powers guaranteed by the Constitution. Assigning specific cases to specific judges and punishing judges or prosecutors for rulings or investigations lawmakers dislike raises no ambiguity: These reforms would strike at the principles of equality before the law and the right to a fair trial.

In industry, a monopoly enriches dominant firms while eroding consumer welfare and damaging market efficiency. When a political camp monopolizes power, the result is deeper division, heightened conflict and the degradation of democracy. Restraint, consideration, dialogue and compromise — the safeguards that were meant to prevent such outcomes — have disappeared.

Coupang’s dominance was strengthened by large-scale early investment. But politics also played a significant role. In the early 2010s, lawmakers aimed to protect small businesses and traditional markets by revising the Distribution Industry Development Act to restrict large retailers from operating on holidays, late at night or early in the morning. Domestic big-box chains had previously been strong enough to fend off giants such as Walmart, but the new rules undermined that competitiveness. The surge in online delivery during the Covid-19 pandemic then completed the conditions for Coupang’s rise as a near-monopoly.

The DP's dominance was the result of voter choice. In the April 10, 2024, general election, public frustration with the Yoon Suk Yeol administration translated into overwhelming support for the opposition. The DP won more than 170 seats, securing a commanding majority in the National Assembly.

The problem lies in the failure to anticipate what comes after monopoly. Once Coupang became a giant, it failed to protect personal information and failed again to reassure the public after the breach. Its apology and remediation efforts lacked sincerity. Even so, consumers have found it difficult to walk away. When the Korean Confederation of Trade Unions abruptly raised the issue of delivery workers’ health to argue for limits on dawn delivery, consumers and small merchants were the ones who pushed back most strongly. Daily life has become so tied to Coupang that life without it feels impractical.

Jeon Hyun-heui, chair of the Democratic Party’s special committee handling three major independent counsel investigations, speaks during a full committee meeting at the National Assembly in Yeouido, western Seoul, on Nov. 21. The party leadership has vowed to launch a second round of comprehensive special counsel probes. [YONHAP]

The DP's behavior since its landslide victory has left ordinary voters equally stunned. Its pressure on the judiciary and its judicial reforms laden with constitutional concerns have betrayed the expectations of citizens who hoped for better governance. Political power that weakens checks and balances and moves to capture the judiciary is something associated with authoritarian regimes, not with a democracy that has long prided itself on constitutional order. Coupang has betrayed its consumers, and the DP has betrayed its voters.

The dangers of monopoly are stark. In the late 19th century, the United States — despite its commitment to laissez-faire — introduced the Sherman Antitrust Act and went as far as breaking up companies such as AT&T to curb monopoly power. Yet correcting the harms of monopoly has only grown more difficult. At least the economy has the Fair Trade Commission. In politics, there is no comparable mechanism to restrain a governing party that holds overwhelming legislative power. When checks and balances collapse and political monopoly takes hold, how can democracy be safeguarded? Korea’s democratic system is now facing a moment of crisis.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.