Coupang delivery vehicles are parked in Seoul. Yonhap News
Coupang (CPNG) has significantly raised its seller verification standards for health functional foods, responding to mounting counterfeit concerns as Korea’s online market for these products rapidly expands. Sellers lacking proper credentials will be barred from registering new items, and their existing listings will also be halted. The move is seen as an attempt to reduce counterfeit goods and expand direct-purchase offerings in response to the booming online health supplement market, aiming to secure both consumer trust and stronger earnings.
According to industry sources Monday, Coupang began requiring dual document verification at both the business and product levels for health supplement sellers starting last month. At the business level, sellers must submit a business report or registration certificate proving their legal qualification to manufacture, distribute, or import health functional foods in Korea. These typically include a health functional food sales business report or an imported food sales business registration certificate. At the product level, sellers must separately submit supporting documents for each item, such as a manufacturing report or import clearance certificate from the Ministry of Food and Drug Safety (MFDS), along with product labels. The structure simultaneously verifies both business qualifications and the legal compliance of individual products.
If either requirement is not met, the registration of new products will be restricted, and under Article 13 of Coupang’s Terms of Service, existing listings may be subject to measures including temporary suspension. The policy applies to both general marketplace sellers and Rocket Growth sellers who use Coupang’s fulfillment services. In effect, all health supplement sellers on the platform are covered. Coupang is individually informing affected sellers of the required documents, submission methods, and deadlines through email and a dedicated online inquiry board.
The measure follows Coupang’s complete suspension of food and cosmetics sales by Chinese businesses on January 30. The company told sellers it is “continuously refining its product handling policies to ensure that only legal and safe products are sold,” explaining the rationale behind the decision.
According to the Korea Health Supplements Association, the domestic health supplement market reached 5.96 trillion won last year. The share of online purchases jumped from 43.8% in 2019 to 71% last year. In just six years, online channels have become the main conduit for more than 4 trillion won worth of health supplement sales.
As the market has expanded rapidly, consumer reviews on online communities have repeatedly flagged health supplements, cosmetics, and food products purchased on e-commerce platforms as counterfeits that imitate even the packaging and labels of well-known brands. Industry observers note that China-based open market sellers frequently distribute unverified health supplements. Regulatory bodies including the MFDS have also voiced concerns about potential health risks of ingestible and topical products. This prompted Coupang’s decision in January to suspend Chinese sellers. The new document verification policy for health supplements is also expected to effectively filter out products from sellers operating in China.
Some analysts view the tighter standards as a mid- to long-term move to position Coupang as a trusted platform and boost its market share in the fast-growing health supplement sector. By establishing a reputation as a counterfeit-free platform, Coupang can absorb rising online demand for health supplements, the reasoning goes. However, since tightened verification could remove products from non-compliant sellers and reduce overall transaction volume, some in the industry expect Coupang to expand direct purchasing to offset the decline. According to MFDS data, Coupang’s health supplement imports totaled $9.65 million (about 14.6 billion won) in 2024, up 17.7% from $8.19 million a year earlier. “Open market sellers are essential because they provide product variety and a diverse pricing ecosystem,” a Coupang official said. “But strengthening consumer trust in ingestible and topical products is the priority.”