Coupang Challenges Designation of American CEO Kim Bumseok as Group Owner with Administrative Lawsuit...Will the U.S. Stay Silent? [Why&Next]

KFTC Changes “Same Person” for the First Time in 5 Years
Management Role of Chairman Kim’s Brother Cited as Key Reason
Coupang Maintains: “No Concerns About Private Benefit”
Legal Battle Expected... Possible Impact on Korea-U.S. Relations

The Korea Fair Trade Commission (KFTC) has changed the "same person" (de facto group owner) designation for Coupang from the corporation to individual Kim Bumseok for the first time in five years. However, Coupang continues to dispute the KFTC's criteria, raising expectations that this issue will ultimately be resolved through legal interpretation. Whether Kim Yuseok, the younger brother of Coupang Inc. Chairman Kim Bumseok, is involved in Coupang's management is expected to become a key point of legal contention. As Kim, who holds U.S. citizenship, is now directly subject to regulation, there is a significant possibility that this may affect future Korea-U.S. relations.

Kim Bumseok, Chairman of Coupang Inc. Provided by Coupang

U.S.-Listed Company with American CEO Designated as Group Owner for First Time in 40 Years

On April 29, the KFTC announced the results of its 2026 designation of publicly notified corporate groups (large business groups), stating that it would change Coupang's "same person" from the corporation to natural person Kim Bumseok. This is the first time in five years that the KFTC has changed Coupang's "same person" from a corporation to an individual, since first designating it as a publicly notified corporate group with total assets of KRW 5 trillion or more in 2021. Notably, this is the first time in 40 years, since the KFTC began managing large business groups in 1986, that a U.S.-listed company with an American CEO has been designated as the "same person." Previously, Woo Hyun Lee, Chairman of OCI and a U.S. citizen, was designated as the "same person" as an individual in 2023, but that company was not U.S.-listed.

The KFTC determined that Kim Yuseok, the chairman's younger brother, holds a senior position at the company and is in effect involved in management, which disqualifies Coupang from the exception that allows designation of a corporation as the "same person." Under the current Fair Trade Act, a corporation can only be designated as the "same person" instead of a natural person if: ▲ the group scope is identical regardless of whether the "same person" is an individual or corporation; ▲ the individual in question does not directly invest in any domestic affiliates except the top holding company; ▲ relatives do not invest in or serve as executives at domestic affiliates, i.e., are not involved in management; and ▲ there are no financial loans or debt guarantees between the individual (or their relatives) and domestic affiliates. These standards are based on the Fair Trade Act, which was revised by the KFTC in 2023 and implemented the following year, as well as the "Guidelines on Criteria and Procedures for Determining the Same Person."

At the briefing, the KFTC said, "Mr. Kim Yuseok holds a vice president-level position at Coupang, which is equivalent to the rank of representative director at major affiliates. His annual compensation is on par with the average for registered executives at the same level, and he is assigned a personal assistant, receiving treatment similar to that of a registered executive." The KFTC added, "He has chaired hundreds of regular and ad hoc meetings on logistics and delivery policy, invited CEOs of Coupang Logistics Service (CLS) and others to review weekly work performance, and discussed improvement plans such as increasing shipment volume and changing delivery policies."

The KFTC also confirmed that he effectively exercises influence over specific business execution directions for key operations. This was identified through materials secured during the on-site investigation of Coupang headquarters earlier this year, as well as issues raised during a National Assembly hearing held after Coupang's massive personal information leak last year.

Choi Jang-kwan, Director of the Corporate Group Surveillance Bureau at the KFTC, explained, "A report on Kim Yuseok's involvement in management was received during the Coupang hearing, and in the process of confirming this, we discovered things that had not been found previously. During the on-site investigation, we additionally verified that Kim Yuseok is at nearly the highest rank for participating in Coupang's key decision-making."

Choi Jang-kwan, Director of the Corporate Group Surveillance Bureau at the Korea Fair Trade Commission, is briefing on the designation results of publicly notified corporate groups for 2026 at the Government Complex Sejong in Sejong City on the 29th. Photo by Yonhap News

Coupang: "We Meet Exception Requirements for Group Owner Designation"...Announces Administrative Lawsuit

Immediately following the KFTC's announcement, Coupang issued a statement saying, "Coupang Inc. owns 100% of the Korean Coupang corporation, and Korean Coupang in turn owns 100% of its subsidiaries and sub-subsidiaries, making its ownership structure transparent. Neither Chairman Kim nor his relatives hold any shares in Korean affiliates, so there is no concern of private interest. We will faithfully clarify our position through an administrative lawsuit."

Specifically, Coupang stated, "Chairman Kim's brother is not an executive (such as representative director, director, auditor, or manager) under the Fair Trade Act, nor does he hold any shares in Korean affiliates." The statement continued, "Coupang Inc. is a U.S.-listed company, subject to strict oversight including related-party disclosure obligations required by the Securities and Exchange Commission (SEC). The Korean Coupang corporation has consistently met the exception requirements for 'same person' designation."

Previously, on April 23, Coupang also refuted demands from civic groups calling for Chairman Kim to be designated as the "same person," stating, "We meet all four exception requirements for determining the same person as set by the government." For example, Coupang emphasized, "Chairman Kim's brother is seconded from Coupang Inc. and is in charge of work to improve global logistics efficiency. Like other members at similar levels, he only holds a portion of Coupang Inc. listed shares."

Coupang also highlighted that its governance structure involves the Korean corporation owning 100% of its subsidiaries and sub-subsidiaries, with not a single share in Korean affiliates owned by Chairman Kim or any of his relatives. The company further argued that designating Chairman Kim as the "same person" amounts to double regulation of a listed company headquartered in the United States. "If Chairman Kim is designated as the 'same person,' then directors who are American company CEOs and serve on the Coupang Inc. board will also become 'related parties.' This would result in the absurd situation where companies in which they hold shares or exercise control are also considered Coupang affiliates," the company said.

Coupang also mentioned the case of S-Oil, where the "same person" has been designated as a corporation rather than an individual, arguing that treating Coupang differently is a discriminatory measure inconsistent with the principle of fairness for foreign companies. However, this was not reflected in the KFTC's decision. In accordance with relevant regulations, Coupang plans to file an objection with the KFTC within seven days and, if rejected, will proceed with an administrative lawsuit.

Members of the Democratic Party of Korea, the Party for Justice Innovation, the Progressive Party, and the Social Democratic Party held a press conference on the 28th at the National Assembly Communication Office condemning unjust pressure from the U.S. political sphere that infringes on South Korea's judicial sovereignty in relation to the Coupang incident. Yonhap News Agency

What Changes When the Group Owner Is Designated as an Individual?

If the "same person" designation is changed from a corporation to an individual, Coupang is expected to be held to higher standards of transparent management. The Fair Trade Act requires that the "same person" and their relatives (special related parties) must annually disclose information such as the name, representative, country of operation, business details, shareholder structure, and cross-shareholding status of overseas affiliates in which they hold at least 20% of the total issued shares. The Act also prohibits providing unfair private benefits to special related parties.

Calls are expected to grow for Chairman Kim to fulfill his social responsibilities in relation to various issues surrounding Coupang, including the personal information leak, unfair trading practices with suppliers, industrial accidents, corporate governance concerns, and tax evasion allegations.

However, as the United States has raised concerns that the Korean government's investigation into Coupang's personal information leak discriminates against American companies, the impact of this "same person" designation on bilateral relations remains a variable. On April 21, 54 Republican members of the U.S. House of Representatives sent a letter to Ambassador Kang Kyung-hwa, urging an end to discrimination against U.S. companies such as Coupang.

Regarding this, a KFTC official stated, "Because the change of 'same person' is a legitimate enforcement of the law based on requirements in the enforcement decree and judgment guidelines, we do not expect the United States to take issue with it." The official added, "What Coupang claims as double regulation actually serves different purposes: U.S. disclosures are for investor protection, while domestic regulations aim to curb economic concentration. Only a general overlap in company status or financial data occurs, so the practical burden on Coupang should not be significant."

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