Beomseok Kim Ultimately Designated as Coupang’s Controlling Shareholder... Five-Year “Special Privilege” Controversy Comes to an End

Yuseok Kim’s Managerial Control Confirmed… Exception Requirements Not Met
Increased Regulatory Risks Such as Unfair Support Restrictions and National Assembly Hearings

The five-year controversy over Beomseok Kim, Chairman of Coupang Inc., being designated as the “same person” (controlling shareholder) has ultimately ended in Kim’s defeat. The Korea Fair Trade Commission (KFTC) confirmed substantial evidence that Kim’s younger brother is deeply involved in management and officially designated Chairman Kim as the same person for Coupang. This brings closure to the five-year dispute over the “exception to controlling shareholder designation,” which had persisted since Coupang first entered the large business group category in 2021.

Chairman Kim’s Brother Confirmed to Participate in Management… The ‘Corporate Same Person’ Defense Overcome

Beom-seok Kim, Chairman of Coupang Inc. Coupang.

On April 29, the KFTC announced the 2026 designation results for public disclosure target business groups, changing Coupang’s same person designation from a corporation to an individual—Chairman Beomseok Kim. This is only the second time that a U.S. national has been designated as a same person, following Woo Hyun Lee of OCI in 2023, and the first time the “same person” system has been applied to the CEO of a U.S.-listed company.

During on-site inspections ahead of this year’s designation, the KFTC determined that Coupang did not meet one of the exception requirements for corporate same person status—specifically, that there must be no participation by relatives in the domestic affiliates’ management. Investigation revealed that Chairman Kim’s younger brother, Yuseok Kim, has exerted a dominant influence over the management of major affiliates.

According to the KFTC, Mr. Kim holds the highest executive rank of Vice President within Coupang, receiving annual compensation and secretary assignments equivalent to a registered executive. He personally chaired hundreds of regular and ad-hoc meetings related to logistics and delivery policies, summoned the CEO of Coupang Logistics Service (CLS) and others to review business performance, and exercised de facto influence over specific work execution such as changes to delivery policies. Coupang had previously argued that it met the exception requirements, stating that neither Kim nor his relatives hold any equity in domestic affiliates or hold registered executive positions. However, the KFTC focused on substantive influence rather than formal titles.

The KFTC cited Article 38, Paragraph 5 of the Enforcement Decree as the key reason for changing the same person designation to Beomseok Kim. The KFTC emphasized, “There is significance in aligning the person who actually controls the business group with the same person who bears ultimate responsibility for the policies applied to large business groups, thereby eliminating any gap between authority and responsibility.”

Aftermath of the Same Person Designation… Will It Lead to Administrative Litigation or Trade Disputes?

This decision is seen as the KFTC taking a principled stance amid ongoing debates between economic substance and fairness. Coupang has long faced criticism that a company generating more than 90% of its sales in Korea cannot be regarded as a foreign firm, and that there is reverse discrimination compared to domestic platform leaders such as Lee Haejin of Naver and Kim Beomsoo of Kakao. After a large-scale data breach, public sentiment, especially from civic groups, increasingly called for Coupang to be designated with a same person.

With Chairman Kim now designated as the same person, he will be personally responsible for submitting required documents. He is also now obliged to disclose information about overseas affiliates. In cases where the same person or special related parties (blood relatives within four degrees and in-laws within three degrees) own 20% or more of the total issued shares of an overseas affiliate, there is an annual disclosure obligation regarding the company’s name, representative, country of incorporation, business activities, shareholder composition, and cross-shareholding status.

There are also accompanying obligations to prohibit unfair support and private benefit appropriation. If the same person or their relatives own 20% or more of a company’s shares, or if an affiliate in which they own 50% or more of the shares, these companies cannot provide unfair business opportunities or benefits when dealing with companies controlled by the same person. Risks related to government audits and the requirement to appear before the National Assembly are also expected to increase significantly.

Administrative Litigation Expected… Could This Escalate into a Trade Dispute?

Jeong Wonju, Chairman of Daewoo Construction, newly designated as the same person for Jungheung (left). Photo by Yonhap News.

Industry observers are paying close attention to whether Coupang’s objections on the grounds of violation of Most-Favored-Nation (MFN) treatment under the Korea-U.S. Free Trade Agreement (FTA) will escalate into a trade dispute. When the Citizens’ Coalition for Economic Justice recently called for same person designation, Coupang strongly countered by asserting: ▲there are no concerns over private benefit appropriation, making the designation irrelevant to the system’s purpose; ▲U.S.-listed companies would face double regulation; ▲the measure is discriminatory and inconsistent with the treatment of other foreign companies; and ▲Chairman Kim’s brother is not involved in management.

Coupang objected to the KFTC during the designation process, but its arguments were rejected. After the KFTC announcement, Coupang stated, “Chairman Beomseok Kim and his family do not hold shares in any Korean affiliate, so there is absolutely no concern about private benefit appropriation,” and, “Chairman Kim’s brother is not an executive (CEO, director, auditor, general manager, etc.) under the Monopoly Regulation and Fair Trade Act, and does not own shares in any Korean affiliate, therefore meeting the requirements for an exception from same person designation.” Coupang added, “We intend to explain our position thoroughly through future administrative litigation.” There is also the possibility that the U.S. Trade Representative (USTR) and others may exert trade pressure on the grounds of a Korea-U.S. FTA MFN violation.

Choi, head of the KFTC’s Enterprise Group Surveillance Bureau, commented, “We do not expect the U.S. to take issue with legitimate law enforcement, and concerns about double regulation are exaggerated.”

Meanwhile, Dunamu, which had also been considered for an exception along with Coupang, satisfied all exception requirements, including no participation by relatives in management, according to on-site inspections, and so retained its corporate same person status. Joongheung Construction changed its same person designation from the late founder Changseon Jeong to his eldest son, Wonju Jeong, following the founder’s passing. Chairman Jeong was recognized for his internal and external control over the group as the largest shareholder (100%) of the holding company Joongheung Construction.

This content was produced with the assistance of AI translation services.