South Korea’s antitrust regulator has newly identified Kim Bom, the founder of Coupang, a U.S.-listed e-commerce giant, as the de facto controlling entity of the company. Kim, a U.S. citizen and chairman of the board, has been categorized as the “same person” of the group, a legal term denoting the individual effectively managing a conglomerate, as stated by the Fair Trade Commission (FTC). This move subjects him to stricter regulatory oversight.
The decision by the FTC comes amid increased regulatory scrutiny on Coupang in South Korea following a significant data breach last year affecting around 34 million customers, according to reports from Yonhap news agency. The U.S. government has also expressed concerns to South Korean authorities regarding potential discriminatory treatment of the company in light of this incident.
Choi Jang-gwan, a senior FTC official, highlighted that a notable change resulting from this designation is the requirement for extensive disclosures of overseas affiliates by Kim and his relatives. They will also need to adhere to detailed investigations by the authorities. The “same-person” designations are applicable to leaders of major business groups, like Samsung Electronics Chairman Lee Jae-yong, who face additional regulations including disclosure mandates on intra-family transactions and regulations on holding company structures.
The FTC annually identifies large business groups based on their total assets, subjecting them to regulatory measures to enhance transparency in corporate management. Coupang had previously qualified for an exception allowing a corporation, rather than an individual, to be designated as the controlling entity. However, the FTC found that Coupang no longer met the exception criteria, particularly due to Vice President Yoo Kim, Kim Bom’s younger brother, being actively involved in management.
In response to the announcement, Coupang stated its intention to challenge this designation through administrative litigation, emphasizing that as a U.S.-listed entity, it already adheres to stringent oversight requirements, including related-party disclosure obligations mandated by the Securities and Exchange Commission. This renders a same-person designation unnecessary and creates regulatory conflicts, as per Coupang’s press release. The FTC disclosed that a total of 102 business groups with assets exceeding 5 trillion won (US$3.4 billion), along with their 3,538 affiliates, have been included in this year’s watch list for mandatory filings.
