Seoul’s appeals court has temporarily halted the Fair Trade Commission’s (FTC) controversial decision to classify Coupang founder Bom Kim as the e-commerce giant’s controlling figure, or ‘same person.’ This ruling suspends crucial disclosure requirements for Coupang pending further legal proceedings.
The Seoul High Court’s Administrative Division 7 granted an injunction requested by Coupang, Bom Kim, and other plaintiffs. This judicial action effectively suspended both the FTC’s ‘same person’ designation and its demand for additional disclosure information from Kim.
This suspension will remain active until 30 days after the court delivers its ruling on the main administrative lawsuit. Coupang had initially pushed for these regulatory measures to be on hold until a final judgment in the case was reached.
The court underscored its decision, stating, “The applicants have successfully demonstrated an urgent need to prevent irreparable harm.” It further noted that granting the suspension would not significantly undermine public interest.
Moreover, the court also determined that the FTC’s request for additional corporate information was indeed an administrative action, thereby making it subject to judicial review. Consequently, this specific measure was also suspended.
The FTC initially altered Coupang’s ‘same person’ designation in April when publishing its 2026 list of large business groups requiring stringent disclosure. This change replaced Coupang Inc., the US-listed parent company, with its founder, Bom Kim, as the designated controlling entity.
According to the regulator, the involvement of Bom Kim’s younger brother, Kim Yoo-seok, who serves as a Coupang vice president, in managing the group’s Korean affiliates indicated that Bom Kim effectively exercised control over the entire business conglomerate.
FTC regulations stipulate that a corporation can maintain its status as the designated controlling entity only if relatives of the ultimate controlling individual do not actively participate in managing its domestic affiliates. The commission concluded that Coupang ceased to meet this vital condition due to Kim Yoo-seok’s significant management role.
Coupang, however, strongly disputes the FTC’s interpretation of these regulatory criteria.
The company emphasized its transparent ownership structure, stating, “Coupang Inc. maintains 100 percent ownership of the Korean operating company. Neither Bom Kim nor his relatives hold shares in the Korean affiliates, thus eliminating any risk of private benefits being transferred to the founder’s family.”
Following the FTC’s decision, Coupang initiated an administrative lawsuit aimed at overturning the ‘same person’ designation and simultaneously requested a provisional injunction to suspend the measure during the ongoing legal proceedings.
During a hearing in June, Coupang argued that enforcing this designation change would compel Bom Kim to disclose sensitive information about his relatives, including their shareholdings and roles in affiliated companies. This, they contended, would impose significant compliance burdens and lead to potential, irreversible harm.
The FTC countered these claims, asserting that the designation would not inflict immediate or significant harm. Furthermore, the commission maintained that foreign-controlled business groups should be treated equitably, without differentiation from domestic Korean conglomerates.
Notably, the court had already temporarily suspended the FTC’s measures on June 14 while it was deliberating on Coupang’s injunction request.
yeeun
