Coupang has filed a lawsuit seeking to overturn the Korea Fair Trade Commission's decision to designate founder Kim Beom-suk, chair of the board of Coupang Inc. (U.S. headquarters), as the same person, according to reports on the 11th. There had been no previous cases of lawsuits filed over the commission's same-person designation.
According to legal sources, on the 8th Coupang filed a lawsuit with the Seoul High Court against the Korea Fair Trade Commission (FTC) seeking to cancel the "disposition to change the same-person designation." On the 9th, the following day, it also filed for a stay of execution on the "disposition to change the same-person designation." This came 9–10 days after the Korea Fair Trade Commission (FTC) released its plan to designate Chair Kim as the same person. BAE, KIM & LEE LLC is serving as Coupang's legal counsel.
Earlier, on the 29th of last month, the Korea Fair Trade Commission (FTC) said it would change Coupang's same person from the Coupang corporation to Chair Kim. After designating Coupang in 2021 as a large business group subject to disclosure with asset of at least 5 trillion won, the commission had treated the Coupang corporation—not the individual Kim Beom-suk—as the same person, but changed it after five years.
With the same-person designation, starting this year Chair Kim must report annually to the Korea Fair Trade Commission (FTC) on the shareholdings in domestic and overseas affiliates owned by himself, his spouse, relatives within the fourth degree, and in-laws within the third degree, and must also disclose them publicly. Failure to properly fulfill these obligations could lead to a criminal complaint for violating the Monopoly Regulation and Fair Trade Act.
In response, Coupang said, "We will faithfully explain through future administrative litigation," and then proceeded to file suit. A legal professional specializing in fair trade cases said, "It appears Coupang aims to ultimately secure a ruling canceling the same-person designation while pausing its effect through a stay of execution."