Photo courtesy of Yonhap News

 

 

[Alpha Biz= Paul Lee] South Korea’s Fair Trade Commission has redesignated the controlling entity of Coupang from a corporate body to a natural person, naming Chairman Kim Bom-suk as the group’s “same person” (controlling individual).

According to Yonhap News Agency on the 29th, the FTC determined that Kim effectively controls the company, marking the first such change since Coupang was designated as a large business group in 2021.

Under Korean antitrust law, the “same person” refers to the individual or entity exercising de facto control over a corporate group. When designated as a natural person, additional regulations apply, including disclosure requirements for transactions involving relatives and restrictions on unfair intra-group support.

The FTC cited the involvement of Kim’s brother, Kim Yoo-seok, in company operations as a key factor. Authorities said he chaired hundreds of meetings related to logistics and delivery policies and influenced major business decisions, concluding that Coupang did not meet the criteria for designating a corporate entity as the controlling party.

With the redesignation, regulatory oversight is expected to intensify. Overseas affiliates in which the controlling individual or related parties hold certain stakes will now be subject to disclosure, and transactions that could benefit related parties will face stricter scrutiny.

Coupang pushed back against the decision, arguing that Kim’s brother does not hold an executive position under Korean law and owns no shares in its domestic entities. The company also emphasized that Coupang Inc. fully owns its Korean operations, minimizing the risk of self-dealing.

Coupang said it plans to file an objection and may pursue administrative litigation if the decision is upheld, calling the designation a form of double regulation and inconsistent with treatment of foreign companies. The FTC is also reviewing whether false disclosures were made and whether further sanctions are warranted.

 

 

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]