Court Halts Kim Bomseok's Designation as Coupang Owner...Suspends Fair Trade Commission's Order

Seoul High Court Issues Ex Officio Suspension Before Injunction Hearing
Effectiveness Suspended Until July 15
Injunction Hearing Scheduled for Next Month

The court has temporarily suspended the effectiveness of the Korea Fair Trade Commission's decision to designate Kim Bomseok, Chairman of Coupang Inc., as the "same person" (owner) of the group.

Coupang Headquarters in Seoul. Photo by Yonhap News Agency

According to the legal community on May 15, the Seoul High Court's Administrative Division 7, acting ex officio, suspended the effect of the Fair Trade Commission's decision the previous day in connection with the lawsuit filed by Coupang seeking to cancel the change of designation of the "same person." The suspension will remain in place until July 15.

This measure is understood to take into account the time needed for the upcoming hearing and decision on the injunction, which is scheduled for next month. The court has set June 16 as the hearing date for Coupang's application for injunction.

According to the Administrative Litigation Act, the court may grant an injunction if there is concern that the execution of the disposition could cause irreparable harm and urgency is recognized.

Previously, on April 29, the Fair Trade Commission changed Coupang's "same person" from the existing corporate entity to the natural person, Chairman Kim Bomseok. This is the first time since Coupang was designated as a public disclosure group in 2021 that the Fair Trade Commission has changed its "same person."

The Fair Trade Commission determined that Chairman Kim's younger brother, Kim Yooseok, is effectively participating in the management of Coupang and therefore did not meet the exception requirements under which a corporation could be designated as the "same person."

In contrast, Coupang argued, "Chairman Kim and his relatives do not hold any shares in Korean affiliates, so there is no risk of private interest appropriation," and on May 11, filed an administrative lawsuit seeking to cancel the Fair Trade Commission's decision, along with an application for injunction.

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