Coupang pulls out CJ CheilJedang products from its e-commerce store as dispute over price escalates

Coupang and CJ CheilJedang are at odds, and their conflict appears to be getting deeper. The companies’ spat was due to the prices of products that the latter is selling on the former’s e-commerce platform.

With their situation, Coupang decided to stop selling CJ CheilJedang’s food items so customers would no longer see the Hetbahn instant rice or Bibigo kimchi and dumplings on the site. Once the stock runs out, there will be no new orders from Coupang to refill the inventory, so the goods will only be available on the site until they are all sold out.

Industry officials said on Thursday, Dec. 1, that it was last month when the e-commerce giant stopped placing orders from CJ CheilJedang. Then again, The Korea Times reported that independent sellers who have accounts on Coupang may continue to sell CJ products on the platform.

The intensifying discord between Coupang and CJ CheilJedang is worrying the industry because there is the possibility of the situation also causing inconveniences to the consumers. It started when the e-commerce firm criticized the food manufacturer’s frequent requests for price increases. It was also claimed that there was a breach of the agreement related to the supply of products.

CJ CheilJedang denied all of Coupang's allegations and explained that other retail outlets have also dealt with the shortage of its products. As for the price hikes, the company said this was due to the strong U.S. dollar coupled with global inflation.

"CJ CheilJedang's breach of promise could worsen our profitability, damaging other food firms that missed opportunities to supply their products," an official at Coupang stated. On the other hand, an official at CJ countered the claims by saying, "Coupang seems to be threatening us to guarantee its profit margin next year."

Korea Joongang Daily further reported that CJ CheilJedang said it is actually the other way around because it is the one that was unfairly treated by Coupang. It said that Coupang asked them to supply products for unreasonably low prices, so they refused the request. As a result, the e-commerce company announced it would no longer order and discontinue the sale of CJ CheilJedang products.