Fair Trade Commission (FTC) Chairman Han Ki-jeong speaks during a press conference at a restaurant in Korea's southern port city of Busan, Friday. Courtesy of FTC

Fair Trade Commission (FTC) Chairman Han Ki-jeong has reiterated the regulator's willingness to sanction Coupang, citing the need to build a fair trade ecosystem in the online platform market despite strong backlash from the e-commerce firm.

He justified the FTC's latest decision to impose fines of 140 billion won ($100 million) on the nation's largest e-commerce firm, saying it was inevitable not just for the fair competition ecosystem but for the benefit of customers.

"The sanctions were to establish a fair transaction order and boost customer benefits," he told reporters during a press conference Friday. "It was executed in accordance with the law and principle."

After the FTC slapped the highest-ever fines on a retail player here, some critics said it was too harsh, as most other e-commerce players engage in similar sales practices as conducted by Coupang.

Coupang was fined amid allegations that the firm manipulated its in-app algorithm to boost sales of its private-branded products.

Coupang maintains it is innocent, saying it intends to file administrative litigation against the commission. The company says its competitors also carry out similar sales practices to chalk up more sales for products under their private brands.

"We will send Coupang a resolution which proves the firm's illegality and contains details on the firm's prohibited practices," Han said.

Regarding concerns over possible reverse discrimination against the home-grown player, the head of the watchdog also said an investigation is underway into overseas e-commerce firms — such as AliExpress and Temu — which sparked a series of controversies for inappropriate sales activities here.

"The FTC is investigating overseas platform firms without any discrimination," he said. "We are looking into whether AliExpress and Temu breached the nation's electronic commercial law. Major competition authorities in the United States and Europe also take stern legal actions against any foul play by platform firms."

According to the FTC, the investigation into the Chinese e-commerce firm will be finalized by the end of July.

Han also hinted at heavy punishment for Google Korea over its alleged breach of fair competition here. The company is suspected of cross-selling its YouTube Music service when selling its YouTube Premium subscription service.

"We will closely inspect the case by analyzing whether the sales practice hampered fair competition in the nation's music streaming market," he said. "The FTC will finish its ongoing investigation into the company in July and take stern action in the event of a violation of local law."