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Kim Bum-seok, Chairman of Coupang |
[Alpha Biz= Ellie Kim] South Korea’s Fair Trade Commission (FTC) has designated Coupang Inc. Chairman Kim Bum-seok as the company’s controlling individual, overturning a five-year precedent in which the company itself had been classified as the controlling entity.
According to government sources on May 1, the FTC made the designation on April 29 as part of its annual announcement of large business groups and their controlling shareholders.
Under Korea’s fair trade law, designation as a controlling individual (so-called “same person”) subjects the individual and related parties to stricter disclosure requirements and regulations, including rules against unfair intra-group transactions.
Since Coupang was first classified as a large business group in 2021, the FTC had designated the corporation—rather than Kim—as the controlling entity, citing exceptional circumstances. However, the regulator concluded this year that the conditions for such an exception were no longer met.
The FTC cited evidence of management involvement by Kim’s brother, Kim Yoo-seok, including his executive role and participation in key decision-making processes, as a key factor in its decision.
The regulator said it obtained supporting evidence through a recent on-site investigation and is now reviewing whether Coupang submitted false or incomplete disclosure data in the past.
The move has also raised questions about the FTC’s own earlier judgment, with critics arguing that the regulator may face scrutiny for reversing its long-standing position.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
