Seoul Court Suspends Order Designating Coupang’s Founder as Controlling Person
Coupang wins the first round in its battle with the competition regulator.
1Court Decision
The Seoul High Court suspended the designation of Coupang founder Bom Kim as the company's controlling person. This decision froze the company's disclosure obligations while the main case is heard.
2Court's Reasoning
The court stated that the applicants demonstrated an urgent need to prevent irreparable harm. It found no indication that the suspension would significantly undermine public interest.
3Coupang's Defense
Coupang argued that it has a transparent ownership structure and that Kim's family does not hold shares in the local affiliates. It claimed there is no way private benefits could be transferred to the founder's family.
4FTC's Position
The Fair Trade Commission maintained that the designation did not cause immediate or significant harm. It argued that a business group controlled from abroad should not be treated more leniently than a Korean company.
5Court's Findings
The court determined that the FTC's request for additional information was an administrative action subject to judicial review. This means companies can now challenge routine information requests in court.
6Main Case Awaited
The main lawsuit, which seeks to completely overturn the designation, has yet to be heard. During this process and for a month after the ruling, a company will be legally responsible for Coupang's disclosures.