Coupang founder to sell up to 15 mn shares, donate 2 mn more

Chairman Bom Kim

Bom Kim, founder and chairman of the board at Coupang, Inc., announced plans to sell up to 15 million shares of Coupang stock by August 2024 and to donate an additional 2 million shares to charity. The move marks Kim’s first major stock sale since Coupang’s initial public offering on the New York Stock Exchange in March 2021. Based on the current stock price of $24 per share, the sale could be valued at around 500 billion won ($361 million).

According to a statement released by Coupang on Wednesday, Kim has submitted a “prearranged stock trading plan” to the U.S. Securities and Exchange Commission (SEC), adhering to Rule 10b5-1, which allows corporate insiders to establish predetermined stock-sale plans to avoid allegations of insider trading. Under this plan, Kim’s sale of up to 15 million shares will begin on November 11th and continue through August 29th, 2025. Separately, the donation of 2 million shares to charity will be handled directly in shares rather than cash from stock sales, although specific donation details have not been finalized.

Coupang said that Kim’s decision to sell was motivated by substantial financial obligations, including tax requirements. The 15 million shares are valued at around 500 billion won, based on Coupang’s closing stock price of $24. Kim has not sold any Coupang stock since the company’s U.S. listing in 2021.

Forbes estimates Kim’s net worth at $3.2 billion, placing him among South Korea’s wealthiest individuals. Industry experts note that, given this is Coupang’s third year post-IPO, it aligns with standard lockup periods, allowing Kim an optimal window for realizing gains on his holdings. Analysts and investors are monitoring the sale closely as it could impact Coupang’s share price and market perception regarding future leadership stability.

Kim currently holds 174.8 million shares, representing 9.7 percent of Coupang’s total 1.78 billion shares outstanding. Should he complete the sale as planned, his holdings will decrease to 157.8 million shares, reducing his ownership stake to 8.8 percent. Despite the reduction, Kim retains control through Coupang’s dual-class stock structure, holding Class B shares with enhanced voting rights - each share carrying 29 votes compared to Class A’s single vote per share. This structure allows Kim to maintain a strong hold over Coupang’s strategic direction with a 73.7 percent voting share, down from 75.8 percent before the planned sale and donation.

Given Kim’s substantial control through voting rights, analysts anticipate limited impact on Coupang’s corporate governance. A securities industry source noted that “Kim’s firm control over the company’s voting rights should prevent any major disruptions in leadership or strategy.”