Fed chair pick Warsh’s links to Coupang come into focus

Kevin Warsh’s nomination as the next chair of the Federal Reserve has renewed attention on his role at Coupang Inc. and his close ties to founder Bom Kim, as the relationship gains relevance amid Korea-US tensions over a data breach affecting more than 33 million users in South Korea.

Coupang Inc., the US-based parent company of Coupang Korea, appointed Warsh to its board of directors in 2019, citing his extensive background in economics and finance as a strategic asset to support the company’s growth. Warsh, a former Federal Reserve governor with deep experience in government and finance, at the time described Coupang as being “at the frontier of innovation” and expressed support for Kim’s vision.

Warsh and Kim share educational ties to Harvard University, where Kim earned a Bachelor of Arts in government and Warsh received a Juris Doctor from Harvard Law School.

Industry sources say Kim actively sought to bring Warsh onto Coupang’s board to gain economic insight ahead of the company’s New York Stock Exchange debut. Warsh is widely regarded as a key architect of Coupang’s successful 2021 initial public offering and served as a strategic adviser to Kim.

Their close relationship has drawn attention in US business circles as well, notably at the Allen & Company Sun Valley Conference in 2023, where the two appeared alongside prominent figures from the global finance and technology sectors.

On Saturday, Coupang issued a statement following Warsh’s nomination, praising his contributions to advancing US exports, fostering innovation, creating jobs and promoting shared prosperity across the markets it serves. “Kevin’s experience and integrity will serve our nation well at this pivotal moment for the global economy, and we look forward to his confirmation by the US Senate,” the company said.

If confirmed as Fed chair, Warsh is expected to step down from Coupang’s board and divest his holdings of roughly 470,000 shares, valued at about $9.5 million as of Monday.

Warsh’s ties to Coupang, once viewed primarily as a strategic business alliance, could now intersect with broader diplomatic considerations, given the unusual scenario of a Fed chair-designate maintaining connections to a private company under regulatory scrutiny outside the US.

Industry insiders underscored the need for careful communication between Seoul and Washington. “It remains uncertain how the US will respond as the investigation into Coupang progresses,” one official said. “A measured approach will be necessary to avoid further misunderstandings.”