Seoul Court Suspends Order Making Coupang’s Founder Its Controlling Person
The Fair Trade Commission (FTC) sought to hold Bom Kim, founder of Coupang, responsible for disclosure requirements, rather than the US-listed parent company. However, the Seoul High Court has put this plan on hold.
Background
On July 14, 2026, Coupang emerged victorious in its legal battle with South Korea’s competition regulator. The Seoul High Court suspended the FTC’s decision to appoint Bom Kim as the controlling figure of the e-commerce group. This freeze was granted while the underlying lawsuit is pending.
Court Ruling
Administrative Division 7 of the court granted an injunction requested by Coupang, Kim, and other plaintiffs, suspending both the designation of Kim as the controlling person and the FTC’s demand for additional information about his relatives. The court cited the urgent need to prevent "irreparable harm" and noted that the suspension would not significantly undermine public interest.
Key Points
- The dispute revolves around Korean corporate law, specifically the definition of a "same person" in charge of large business groups subject to disclosure rules.
- In April, the FTC changed its designation from Coupang Inc. (the New York-listed parent) to Bom Kim as the controlling entity due to family management involvement.
- Coupang argues that its ownership structure is transparent and that no private benefits can be channeled to Kim’s relatives. They also cited procedural and substantive flaws in the FTC’s decision.
- The FTC countered that there was no immediate or significant harm from the designation and advocated for equal treatment regardless of the company’s foreign listing.
Next Steps
The court’s ruling did not conclude the matter, but merely paused the enforcement of the FTC’s order while the lawsuit proceeds.