Coupang's Kim Beom-seok Designated as 'Person in Chief'; Brother's Domestic Management Confirmed

The Fair Trade Commission (FTC) has officially designated Coupang Chairman Kim Beom-seok as the "person in chief" (total owner) of the Coupang conglomerate, marking a significant shift from its previous designation of the Coupang corporation itself. This change, occurring five years after Coupang was first designated as a large business group, comes after the FTC confirmed that Kim Beom-seok's brother, Kim Yu-seok, is actively involved in the company's domestic management.

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Coupang's person in chief has been changed from the corporation to Kim Beom-seok, Chairman of Coupang Inc.

Under the revised criteria, which the FTC clarified in 2024, a conglomerate can only be designated with a legal entity as its "person in chief" if there is no involvement from the controlling natural person's relatives in the domestic management of affiliated companies. The FTC's on-site inspection revealed that Kim Yu-seok, holding a Vice President-level position, has participated in hundreds of meetings concerning logistics and delivery policies, and has effectively influenced business operations. This level of engagement by a relative disqualified Coupang from having the corporation designated as its "person in chief."

This re-designation has direct implications for Chairman Kim Beom-seok. He will now be personally responsible for submitting disclosure documents related to affiliated companies and will be subject to regulations concerning the prevention of self-dealing. Failure to comply with these obligations could result in warnings or even legal prosecution.

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Kim Yu-seok, who is at a Vice President level, which is one of the highest ranks within Coupang, is similar to the level of CEOs of major affiliates.

From a South Korean regulatory perspective, this decision underscores the FTC's commitment to enforcing fair trade practices and ensuring transparency in large conglomerates. The detailed scrutiny of Kim Yu-seok's role highlights the commission's diligence in identifying and addressing potential conflicts of interest or undue influence within business groups. While Coupang has been a major player in e-commerce, this regulatory adjustment reflects a move towards greater accountability for its leadership.

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He has hosted hundreds of regular and ad-hoc meetings related to logistics and delivery policies, and discussed improvement plans such as expanding volume and changing delivery policies.