South Korea Court Allows Coupang to Continue ‘Rocket Delivery’ Service

Michael Song, Feb. 3, 2016, 8:35 a.m.


The Seoul District Court dismissed a petition for a provisional injunction filed by 11 logistics companies including CJ Korea Express against Forward Ventures, which is run by Coupang. The logistics companies filed for a provisional ban against Forward Ventures to stop the company from providing its ‘Rocket Delivery’ service.

The court explained that it dismissed the case as the matter should be decided after a complete investigation of the evidence based on current laws.

The fact that a verdict of ‘not guilty’ was rendered in the case of an accusation against a Coupang delivery man last year, and that the Ministry of Land, Infrastructure and Transport announced that ‘transporting one’s property with a vehicle owned by oneself doesn’t fall under the realm of the charged transport prohibition law’ influenced the court to dismiss the case.

In addition, the court concluded that it was difficult to ban the act considering the relationship between the parties, their type of business, losses they claim to have suffered, and the causes and effects of the case.

However, the court announced that whether the 5,000 won charge that occurs when a consumer returns a product is in the realm of charged transport or not must be decided through litigation on the merits of the case.

Since March 2014, Coupang has recruited ‘Coupang Men’ to provide ‘Rocket Delivery’ services, in which they deliver products directly to customers without the use of a logistics company to carry out the deliveries.

Logistics companies filed a suit against Coupang, claiming that the company is operating a delivery business without a license, and the ‘Rocket Deliveries’ are a breach of the Trucking Transport Business Act.

 

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