[Alpha Biz= Ellie Kim] South Korea’s Fair Trade Commission is expected to decide as early as next week whether to designate Kim Bom-suk, chairman of Coupang Inc., as the controlling entity of the Coupang business group, replacing the current designation of the corporation itself.

The potential shift comes after years of treating Coupang as an exception. Despite Kim’s effective control over the company, the FTC had previously refrained from naming him as the designated controlling shareholder, citing specific exemption criteria. The regulator is now reviewing whether those conditions still apply.

According to industry sources on February 20, the FTC is conducting final assessments on whether the designated “same person” (controlling entity) of Coupang—currently listed as the corporate entity—should be changed to Kim as an individual, as well as the scope of the business group. The designation must be finalized by the statutory deadline of May 1.

The review is reportedly focusing on whether Kim’s relatives, including his brother, hold shares in domestic affiliates or participate in management. Such factors are key in determining whether the controlling entity should be identified as an individual rather than a corporation.

 

FTC Chair Joo Byung-ki recently stated that the decision hinges on ownership structures involving relatives and their participation in management, noting that sufficient data has been collected to assess these factors.

Under current regulations, a corporate entity can be designated as the controlling party only if there is no difference in the group’s scope compared to an individual designation, and if the controlling individual and their relatives do not hold shares in or participate in the management of domestic affiliates. Additionally, there must be no financial transactions such as debt guarantees or loans between the individual (or relatives) and affiliated companies.

If any of these conditions are not met, the FTC may redesignate the controlling entity as an individual.

 

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]