The Citizens' Coalition for Economic Justice (CCEJ) said on the 23rd that, ahead of the Korea Fair Trade Commission's announcement on designating the public disclosure target business groups and their same person, Bom Kim, Coupang's chair, should be designated as the same person. Coupang expressed regret over CCEJ's claim, saying it meets all exception conditions related to determining the same person.
The Korea Fair Trade Commission (FTC) designates a conglomerate group if the total asset value of its affiliated companies is 5 trillion won or more on May 1 each year and defines the group's head as the same person. Once a person is designated as the same person, various regulations apply, including disclosure obligations and a ban on private interest appropriation. Coupang's same person is currently the Coupang corporation.
CCEJ said, "Designating the same person is not a simple administrative procedure but the starting point for overall chaebol regulation, including regulating private interest appropriation, monitoring internal transactions, and imposing disclosure obligations," adding, "It could be a clue to resolving issues related to Coupang, such as the death of logistics center workers, leakage of users' personal information, unfair transactions with small merchants and suppliers, and problems with corporate governance."
CCEJ also noted that there may be obstacles in the process of designating Kim as the same person, as incidents related to Coupang show signs of escalating into a diplomatic issue between Korea and the United States, but emphasized that authorities should follow principles.
CCEJ said, "The Korea Fair Trade Commission (FTC) has delayed designating (Kim as) the same person for Coupang on grounds such as 'control through an overseas corporation' and 'nationality issues,' but such excuses should not be accepted," adding, "It would be hard to deny that Kim, as Coupang's founder and the final decision-maker, exerts decisive influence over overall management strategy, investment, and governance."
It continued, "Rather than deferring judgment by relying on formalistic logic, Kim should be designated as the same person based on substantive control and economic impact," adding, "This is not a measure targeting a specific corporation, but a minimum principle to establish consistency in chaebol regulation and a fair market order."
Coupang rebutted CCEJ's claims. Citing points such as ▲ 100% of Coupang's equity is owned by Coupang Inc., leaving no concern of private interest appropriation ▲ it could amount to double regulation of a listed company headquartered in the United States ▲ it would be inconsistent with the treatment of other foreign corporations ▲ Kim's younger sibling has no equity in domestic affiliates and is not a registered executive, the company said there is no reason to designate Kim as the same person.
Coupang said, "The same person designation system is intended to block concerns that owners of Korean conglomerate groups and their relatives could contribute small equity stakes to enable distorted corporate ownership and control and to appropriate private interests," adding, "The governance structure of Coupang Inc., which is regulated by the U.S. government, is unrelated to such concerns." It added, "If the system is applied for the first time to a foreign corporation chief executive officer (CEO), it is expected to produce only side effects without effectiveness."