A court has suspended the effectiveness of the Fair Trade Commission (FTC) decision designating Kim Bom-suk, the founder and chairman of Coupang Inc., as the company's "de facto head" (controlling shareholder).

The Seoul High Court's Administrative Division 7 partially granted the injunction filed by Coupang against the FTC, which requested a suspension of the decision to change the designated de facto head.

The court stated, "The effectiveness of the FTC's May 1 designation of the de facto head is suspended until 30 days after the ruling on the merits is delivered."

The court also announced that the effectiveness of the FTC's April 8 order requesting Coupang to submit materials regarding Chairman Kim would be suspended for the same period.

The court explained its decision by stating, "There is an urgent need to prevent irreparable harm that may occur to the applicant (Coupang), and there is no evidence that the suspension of effectiveness would be contrary to public welfare."

On April 29, the FTC changed the designated de facto head of Coupang from the corporate entity to Chairman Kim, a natural person.

The reason provided was that Chairman Kim's younger brother, Kim Yu-seok, is effectively participating in the management of Coupang, which disqualifies the company from the exception criteria that allow a corporate entity, rather than a natural person, to be designated as the de facto head.

Coupang filed a lawsuit challenging the decision, arguing, "Chairman Kim and his relatives do not hold any shares in the Korean affiliates, so there is no concern about the pursuit of private interests."

Previously, in May, the court had suspended the FTC's decision on Coupang's de facto head designation ex officio until July 15.

(Photo: Yonhap News)