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Photo Credit: Coupang |
[Alpha Biz= Ellie Kim] South Korea’s Fair Trade Commission (FTC) is expected to make a final decision as early as next week on whether to designate Kim Beom-seok, chairman of Coupang Inc., as the controlling shareholder (designated individual) of Coupang, replacing the current designation of the corporation itself.
According to industry sources on April 20, the FTC has provisionally concluded to change the designated individual to Chairman Kim and is preparing the relevant procedures. The decision is expected to be reflected when the regulator designates large business groups subject to disclosure requirements on April 29. However, the FTC stated that “no final conclusion has been reached” as of now.
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Photo courtesy of Yonhap News |
The FTC has been closely reviewing whether Kim’s brother, Kim Yoo-seok, has been involved in the management of domestic affiliates. Authorities are understood to have identified that Kim Yoo-seok participated in management decisions, including those related to logistics operations. Chairman Kim had previously avoided being designated as the controlling individual on the grounds that family members were not involved in management.
FTC Chair Joo Byung-ki has stated in media interviews that if family involvement in management is confirmed, the designated individual could be changed from a corporation to a natural person.
If Chairman Kim is designated as the controlling shareholder, he would be subject to various legal obligations, including restrictions on self-dealing and requirements to submit data on related parties. Potential criminal referral is also emerging as a key issue. Chairman Kim had previously submitted a statement confirming that family members were not involved in management, and if the FTC determines otherwise, it may need to reassess whether false information was provided.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
