Kim Beomseok Designated as 'Same Person'... Coupang to Clarify Through Administrative Litigation

FTC Cites Chairman Kim's Brother's Position as Coupang Vice President
Deems Exception Criteria Unmet Due to Relative's Involvement in Affiliate Management
Coupang: "Not an Executive under Fair Trade Act... No Stake in Affiliates"
Objection to Be Filed Within 7 Days, Administrative Lawsuit Expected

On April 29, Coupang stated its intention to "faithfully clarify the matter through future administrative litigation," following the designation of its founder, Kim Beomseok, Chairman of Coupang Inc., as the company's 'same person' (total owner) by authorities.

Beomseok Kim, Chairman of Coupang Inc. Photo by Coupang

On this day, Coupang released an official statement following the Korea Fair Trade Commission’s 2026 designation of business groups subject to disclosure, in which the 'same person' of Coupang was changed from the corporation to the individual, Chairman Kim Beomseok. The company emphasized, “Coupang Inc. owns 100% of the Korean Coupang corporation, and the Korean Coupang entity owns 100% of its subsidiaries and sub-subsidiaries, forming a transparent governance structure. Neither Chairman Kim nor his relatives hold any stakes in the Korean affiliate companies, so there is absolutely no concern of private interest appropriation.”

The Fair Trade Commission, in its announcement, cited the fact that Chairman Kim’s younger brother, Kim Yuseok, holds the position of vice president within the company as grounds for determining that Coupang does not meet the exception criteria—such as “the relatives not participating in the management of domestic affiliates, thereby eliminating the risk of private interest appropriation.” This issue was previously raised as a point of contention during a hearing held after Coupang’s large-scale personal data leak last year.

In response, Coupang countered, “Chairman Kim’s brother is not an executive (such as CEO, director, auditor, or manager) subject to the Fair Trade Act, and he does not own any shares in the Korean affiliate companies.” The company further stated, “As a US-listed company, Coupang Inc. is subject to strict oversight, including compliance with related party disclosure requirements mandated by the Securities and Exchange Commission (SEC),” adding, “The Korean Coupang corporation has consistently met the exception criteria for the designation of the same person.”

In accordance with relevant regulations, Coupang plans to file an objection with the Fair Trade Commission within seven days. If the objection is not accepted, the company intends to proceed with an administrative lawsuit.

Meanwhile, the Fair Trade Commission has been enforcing the revised Enforcement Decree of the Monopoly Regulation and Fair Trade Act and the newly established “Guidelines on Criteria and Procedures for Determining the Same Person” since 2024. Under the Fair Trade Act, for a corporation to be designated as the same person instead of an individual, the following conditions must all be met: the scope of the business group must remain the same regardless of whether the same person is designated as an individual or a corporation; the individual in question must not directly invest in domestic affiliates except for the top-level company; relatives must not participate in management by investing in or serving as executives of domestic affiliates; and there must be no financial loans or debt guarantees between the individual (and their relatives) and domestic affiliates.

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