Company Seeks Cancellation of Bom-seok Kim’s New Regulatory Status on May 8
Bom-seok Kim, Chairman of Coupang Inc. (Photo=Coupang)
Coupang has filed a lawsuit against the Korea Fair Trade Commission (KFTC) demanding the cancellation of its decision to designate Bom-seok Kim, chairman of Coupang Inc.'s board of directors, as the controlling person (conglomerate head) of the enterprise group.
According to legal circles on May 11, Coupang filed a lawsuit against the KFTC at the Seoul High Court on May 8, seeking “cancellation of the revised controlling person designation and related dispositions.” On May 9, the company is also reported to have filed an application for a stay of execution of the “revised controlling person designation.”
The KFTC announced the enterprise groups subject to disclosure requirements for 2026 on April 29, changing Coupang’s controlling person designation from a corporation to a natural person. It is the first such change in five years since Coupang was designated as a large enterprise group in 2021.
The KFTC is understood to have reached this conclusion by comprehensively considering the role and influence of Yoo-seok Kim, vice president of Coupang and younger brother of Chairman Kim, determining that Chairman Kim effectively exercises controlling influence over the group.
Following the controlling person designation, Chairman Kim is required, starting this year, to report annually to the KFTC the shareholdings of himself, his spouse, relatives within the fourth degree of kinship, and relatives by marriage within the third degree of kinship in domestic and overseas affiliated companies, and to make the relevant information publicly available. Failure to properly fulfill these obligations may result in a criminal complaint for violation of the Monopoly Regulation and Fair Trade Act.
Gaurav Anand, Chief Financial Officer of Coupang Inc., stated at the Coupang Inc. first-quarter earnings conference call held on May 5: “We are aware of the recent designation matter in Korea and are currently reviewing it carefully.”
He added: “As we have always done, we strive to comply with applicable regulations in every country and region where we operate,” and emphasized, “We will continue to communicate constructively with regulatory authorities and fulfill the necessary obligations going forward.”
The Citizens’ Coalition for Economic Justice (CCEJ) stated in a position paper on April 29: “This decision has made it possible to exercise at least minimal control under the Monopoly Regulation and Fair Trade Act over private benefit tunneling, internal transactions, and transactions with specially related persons that may occur at Coupang,” adding that “it is meaningful in that it has clarified legal accountability for decision-making within the enterprise group.”
The CCEJ argued that what matters now is enforcement following the controlling person designation, and that the KFTC must make this decision a substantive turning point in establishing a fair economic order through rigorous investigation and application of regulations to Coupang.
Park Sang-in, vice chairman of the CCEJ’s Central Committee, also appeared on MBC Radio and stated: “As long as Coupang has a shell company in the United States and Chairman Bom-seok Kim is not even holding an executive position in the Korean Coupang entity, it is effectively difficult to hold anyone accountable even if problems arise at Coupang.”
Coupang released a statement immediately following the KFTC’s announcement, countering: “Coupang Inc. owns the Korean Coupang entity 100%, and Korean Coupang also owns its subsidiaries and sub-subsidiaries 100%, making it a transparent governance structure,” and arguing that “Chairman Kim and his relatives do not hold any shares in Korean affiliated companies, so there is absolutely no concern about private benefit tunneling.”
Coupang also maintained that the chairman’s younger brother does not hold any shares in Coupang’s domestic affiliated companies; that he does not hold an executive position as defined under the Monopoly Regulation and Fair Trade Act, such as representative director, director, auditor, or manager; that he is dispatched from Coupang Inc. and is responsible for improving global logistics efficiency; and that he holds only a small amount of Coupang Inc. listed shares in the same manner as other employees of similar rank.
The company also raised concerns about dual regulation. Coupang stated: “The designation of Coupang Inc.'s controlling person would subject it to dual disclosure obligations and other regulations from both the U.S. and Korean governments,” warning that “applying this system for the first time ever to the CEO of a foreign company listed in the United States is expected to produce only side effects without any practical benefit.”
Kim Eun-jin
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