The Korea Fair Trade Commission (KFTC) said Wednesday it has designated Bom Kim, founder and chairman of Coupang Inc., as the controlling shareholder of the group, replacing its previous classification of the company itself as the controlling entity.
The decision is expected to increase regulatory scrutiny, including stricter disclosure requirements, and could heighten tensions with the U.S.-listed e-commerce firm.
The regulator said the change reflects its conclusion that Coupang no longer qualifies for an exception that allows a corporate entity — rather than an individual — to be designated as the group’s controlling party.
Under South Korean law, a “same person,” or controlling shareholder, refers to the individual or entity that effectively exercises influence over key decisions within a corporate group.
The KFTC had previously designated Coupang Inc. as the controlling entity since 2021, citing the absence of risks related to private interest transactions involving the founder’s family.
However, following an on-site review, the agency determined that the exemption conditions were not met, noting that a relative of Kim — his younger brother — has effectively participated in the management of the company’s domestic affiliates.
Coupang pushed back strongly against the decision, saying Kim’s brother is not an executive under antitrust law and that neither Kim nor his relatives hold equity stakes in the company’s Korean affiliates, eliminating concerns over self-dealing.
The company filed an objection with the regulator, which was rejected, and is expected to pursue administrative litigation.
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