[Teheran-ro] Coupang's Responsibility

The Korea Fair Trade Commission (KFTC) has designated Bom Kim, chairman of Coupang, Inc., as Coupang's same person, or controlling owner. That ends the corporate same-person system that had been in place for five years since the conglomerate was designated in 2021. From the KFTC's perspective, it has finally drawn its sword.
Why did the KFTC, which had long sided with Coupang despite criticism that foreign controlling owners were being treated unfairly, change its view now? On reflection, the decision appears to reflect concerns inside and outside the company about Coupang's governance structure and responsible management.
Until now, Coupang had avoided the same-person designation by arguing that Chairman Kim is a U.S. citizen and that his relatives do not participate in management. But the KFTC's basis for its latest decision was clear: the substantive management role of Kim Yu-seok, the chairman's younger brother and vice president. Coupang repeatedly maintained that Vice President Kim was an ordinary employee who did not take part in management, but he was in fact overseeing key businesses at the Korean entity and receiving a high salary, confirming his managerial influence. The KFTC did not overlook that actual control relationship.
Social demands on Coupang also appear to have influenced the KFTC's decision to designate Chairman Kim as Coupang's controlling owner. Coupang's response to last year's personal data breach fell short of consumer expectations. At the same time, the company tried to shield itself from government regulation by emphasizing that it is a U.S.-listed company. Its lobbying through U.S. political circles also raised concerns as the issue spilled over into trade matters.
Coupang is a U.S.-listed company. As a result, it may be more sensitive to U.S. listing regulations than to Korean law. Its actions may also have been aimed at prioritizing investors. But it must not forget that most of its customers are in Korea. A company that puts regulatory avoidance ahead of the social responsibility expected of its size will struggle to earn the market's trust.
In response to the KFTC's decision, Coupang signaled a hard-line stance, citing an administrative lawsuit and the possibility of violating the United States–Korea Free Trade Agreement (KORUS FTA). But with Chairman Kim's substantive control now established, a prolonged legal battle could end up undermining the company's credibility.
Coupang has long faced criticism that it selectively uses the identities of a Korean company and a U.S. company depending on the situation.
The KFTC's latest decision sends a message that any company wielding enormous influence in the Korean market must also bear the corresponding responsibility. What Coupang needs now is not a sharp legal fight, but a governance overhaul that establishes transparent management and fulfills its moral responsibilities as a member of Korean society.
syj@fnnews.com