The Fair Trade Commission's recent decision to designate Coupang founder Kim Beom-seok as the company's controlling individual is set to impose sweeping new regulations on its financial affiliates, Coupang Pay and Coupang Financial. This marks a significant shift from five years of designation as a large corporate group under a U.S. entity, triggered by the FTC's discovery that Kim's younger brother, Vice President Kim Yu-seok, is involved in management—breaking the exception that previously allowed an overseas corporation to be listed as the controller.
The change exposes Coupang and its finance arms to stricter rules on private benefit misappropriation, internal transactions, and limits on major shareholder stakes. Financial authorities are also intensifying scrutiny: Coupang Pay faces questions over a massive personal information leak, while Coupang Financial is under investigation for allegedly extending high-interest loans to vendors and unfairly leveraging consumer and seller data for loan screening. If confirmed, these practices could be classified as unfair support for intangible assets or anticompetitive behavior.
The FTC had originally considered suspending Coupang's operations over the data breach but found a shutdown impractical—no third-party leakage was confirmed, and the case became a diplomatic issue after U.S. investors filed for international arbitration. With the arbitration negotiation period ending on April 22, the FTC resumed its regulatory schedule, leading to the change in control designation.
Under the new status, Coupang's One ID ecosystem—integrating shopping, payments, and loans—faces heightened oversight for potential unfair work concentration or support. The personal information leak may also expand to include Kim's management responsibility. A Citizens' Coalition for Economic Justice official commented, "All regulations, whether under the Fair Trade Act or for financial affiliates, apply equally. The government's heightened interest following the 'same person' designation suggests swift resolution or strict regulation."
Note: This article originally appeared as part of a News Tomato video. Additional promotional content and unrelated site elements have been removed for clarity.