The regulator has recently sent a sanctions deliberation report to AliExpress Korea regarding its failure to properly register as an online shopping mall operator, according to industry sources on Monday.
The KFTC says that while AliExpress Korea registered with Seoul city authorities in September last year, this entity serves merely as a proxy and does not actually operate the e-commerce platform.
The commission believes that the main e-commerce operations and management are handled by the overseas headquarters or another entity.
The move is part of a broader investigation into Chinese e-commerce firms, which have been rapidly expanding their presence in the Korean market.
The KFTC is also investigating Temu for similar allegations. Additional inquiries are underway into both companies concerning allegations of misleading advertising practices and unfair terms of service related to personal information handling.
