Incoming Federal Reserve Chair Kevin Washi resigned from the board of directors of Coupang Inc. and filed to sell his shares in the company [1].

The divestment is necessary to ensure Washi adheres to strict ethics rules governing the U.S. central bank. By eliminating corporate stock holdings, the incoming chair aims to remove any potential conflicts of interest while overseeing national monetary policy [1, 2].

According to a filing with the U.S. Securities and Exchange Commission, Washi filed to sell 102,363 Class A common shares [1]. The market value of these shares is estimated at $1,681,998, which is approximately 2.52 billion KRW [1].

The SEC filing announcing the sale was made on May 16, 2024 [1]. This follows Washi's confirmation by the Senate on May 13, 2024, the same date his resignation from the Coupang board became effective [1, 3].

Washi had been a member of the board for the South Korean e-commerce company since October 2019 [1]. The move marks a complete severance of his formal ties to the company's leadership, and equity structure, as he transitions into his new role at the Federal Reserve.

Coupang, based in South Korea, has seen significant growth in the region, but the Federal Reserve's ethics guidelines require that its leadership avoid financial interests that could be influenced by the bank's policy decisions [1, 2].

“Washi filed to sell 102,363 Class A common shares”

This move reflects the high standard of financial neutrality required for the Federal Reserve Chair to maintain public trust in the independence of the U.S. economy. By divesting from a major international corporation like Coupang, Washi prevents potential accusations that monetary policy shifts could be designed to benefit specific corporate interests or foreign markets.