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A Seoul Court rejected on Tuesday logistics companies' requests for an injunction to halt social commerce giant Coupang’s free delivery system.
The Seoul Central District Court dismissed the requests for an injunction, saying the legitimacy of Coupang’s delivery system should be determined in the upcoming trials.
An association of 11 logistics companies, including CJ GLS, filed for an injunction against the nation’s largest e-commerce firm, claiming that it had violated the Transport Service Act by operating unlicensed delivery services.
The Transport Service Act bans unlicensed consumer vehicles from delivering parcels for profit-making commercial use. Coupang, for its part, has argued that the ban does not apply to its delivery system, as it is run for free.
Coupang has been operating its own delivery system, “Rocket” delivery since 2014, through its own logistics system, by using unlicensed cars and its own personnel to deliver products to customers.
The Seoul Central District Court dismissed the requests for an injunction, saying the legitimacy of Coupang’s delivery system should be determined in the upcoming trials.
An association of 11 logistics companies, including CJ GLS, filed for an injunction against the nation’s largest e-commerce firm, claiming that it had violated the Transport Service Act by operating unlicensed delivery services.
The Transport Service Act bans unlicensed consumer vehicles from delivering parcels for profit-making commercial use. Coupang, for its part, has argued that the ban does not apply to its delivery system, as it is run for free.
Coupang has been operating its own delivery system, “Rocket” delivery since 2014, through its own logistics system, by using unlicensed cars and its own personnel to deliver products to customers.
The Korea Interland Logistics Association, which represents the interests of logistics firms, filed a complaint in October, taking issue with Coupang’s “illegal” and “unlicensed” delivery services.
The company previously charged an additional 2,500 won ($2.07) to customers who bought goods worth less than 9,500 won. But it stopped charging the fee after the government warned the company of a possible violation of the transport act.
By Ock Hyun-ju (laeticia.ock@heraldcorp.com)
