LG H&H began direct sales with Coupang again by resolving conflict./ Photo: Consumerwide DB
LG H&H began direct sales with Coupang again by resolving conflict./ Photo: Consumerwide DB

[Consumerwide - HueSoung Jun Reporter / Yohan Bok Reporter]  LG H&H and Coupang began cooperating again after four years and nine months of conflict. They've been preparing for direct sales for the last year, and the operation began in the middle of this month, just like before.

During the conflict between LG H&H and Coupang, Rocket benefits were not applied to LG products. But soon, LG H&H will be served with Rocket delivery services, which can be convenient for both regular customers and Wow memberships.

Earlier, the story of conflict began in May 2019, as Coupang cancelled direct sales between Coupang and LG H&H. At the point of the event, LG H&H informed Coupang to stop forcing exclusive transactions, unconditional returns, and providing economic benefit. After that, Coupang unilaterally rejected. (which LG claims.) Thus, LG H&H called on the Korea Fair Trade Commission (FTC) about the Coupang case due to offending the Act on Fair Transactions in Large Retail Business and Fair Trade Law on June 5th. After two years, on August 20, 2021, the FTC acknowledged the case of Coupang, and Coupang was fined 3.297 billion won and issued corrective orders, including a notice order. At that time, LG H&H announced that they understood the result of the investigation, as FTC meant LG would continue to cooperate upon shared development along with consumer convenience enhancement. And LG H&H plans to strengthen the partnership with Coupang. After three years, LG H&H and Coupang are cooperating again, which is 4 years and 9 months since the beginning of the argument. Coupang signed a direct sales contract with LG H&H, and they began operating household products, including Elastine, Perio, and Tech, and the global brand Coca-Cola of LG H&H, in the middle of January, but one step at a time.

On the 12th, an associated person from LG H&H said during an interview with Consumerwide, "We began negotiations in January last year regarding direct sales on a full scale. We will continue marketing activities with various distribution channels so that customers can easily purchase good products."

An associated person from Coupang said, "Since we began Rocket Delivery, we've been consistently trying to operate good products in good condition through direct purchase. We are constantly negotiating with partner companies so that we can lessen the burden on customers at the time of purchase while offering products with easy access. We will make a synergy effect by combining LG H&H products, which cover vast sectors in the beauty, household, and drink industries, with our distribution infrastructure in all domestic areas."

On the other hand, Coupang has been taking legal action regarding the case with the FTC, and the result will turn out this month. Whose side will the court stand for?

 

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