Coupang files lawsuit against FTC ruling designating Bom Kim as controlling entity

Coupang, the Korean unit of U.S.-listed e-commerce giant Coupang Inc., has filed a lawsuit against a decision by the country's antitrust watchdog designating founder Bom Kim as the company's de facto controlling entity, officials said Monday.

Coupang filed the suit with the Seoul High Court on Friday, seeking to overturn the Fair Trade Commission (FTC)'s designation of Kim as the group's controlling entity last month, according to officials.

Once designated as a controlling entity — a legal term for the individual deemed to effectively control a conglomerate — the person is subject to a range of regulations, including a ban on tunneling and mandated reports on the activities of their relatives.

Coupang had previously qualified for an exception allowing the company itself, rather than an individual, to be designated as the same person.

The FTC said Coupang no longer meets key conditions for the exception, citing that Bom Kim's younger brother, Kim Yoo-seok, is effectively involved in management as a vice president of Coupang.

Yonhap