Coupang Chairman Bom Kim Designated De Facto Owner; Must Respect Korean Law for Trust

The Fair Trade Commission's decision to designate Coupang Chairman Bom Kim as the company's de facto owner marks a significant moment in the ongoing scrutiny of the e-commerce giant's corporate governance. For too long, Coupang has operated under a veil, with its legal structure allowing for a convenient detachment from the responsibilities that come with being a major player in the South Korean market. The commission's findings, particularly regarding the involvement of Kim's brother, Kim Yu-seok, in management, clearly indicate that Coupang no longer meets the criteria for an exception to the de facto owner designation. This is not about arbitrary regulation; it's about ensuring that large corporations adhere to the same legal standards as everyone else.

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The Fair Trade Commission announced on the 29th that it designated Coupang Inc. board chairman Bom Kim as the representative of Coupang.

Coupang's response, suggesting legal action and questioning the definition of 'executive' for Kim Yu-seok, smacks of a familiar playbook: delay and obfuscate. While Coupang claims its brother is not an executive under the Fair Trade Act and does not hold shares in Korean affiliates, the commission's investigation revealed significant management participation. This attempt to sidestep clear evidence is disappointing and frankly, disrespectful to South Korean law and its regulatory bodies. The company's assertion that it will 'explain through administrative litigation' feels less like a genuine attempt at clarification and more like a delaying tactic.

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The de facto owner designation system is a minimum safeguard to clarify the actual controller of a corporate group, thereby monitoring internal transactions and blocking unfair profits to relatives.

Operating in South Korea necessitates a commitment to South Korean laws. Coupang's history of attempting to circumvent regulations, even reportedly lobbying US political figures and potentially straining the Korea-US alliance, is deeply concerning. Such actions undermine the trust between the company, its consumers, and the government. Chairman Kim must understand that clinging to these avoidance tactics will only further alienate the South Korean public and regulatory authorities. Rebuilding trust requires not just compliance, but a genuine embrace of the legal framework that governs businesses in this country. It's time for Coupang to act like a responsible corporate citizen, not an entity seeking loopholes.

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We will explain through administrative litigation.