Kevin Warsh’s Fed Nomination Raises Questions Over Corporate Ties and U.S.–South Korea Trade Tensions

Kevin Warsh, President Donald Trump’s nominee to lead the Federal Reserve, is drawing renewed scrutiny over his corporate affiliations as trade tensions between the United States and South Korea escalate. Warsh, a former Federal Reserve governor, has earned more than $1 million since 2020 as a board member of Coupang, a U.S.-based e-commerce company operating heavily in South Korea and currently under regulatory investigation there.

Warsh has served on Coupang’s board since October 2019 and has received nearly $325,000 annually in total compensation since 2022. Coupang, headquartered in Seattle, is facing a probe by South Korean regulators related to a large-scale data leak. Some U.S. investors have urged the Trump administration to examine the investigation, arguing it unfairly targets an American company operating overseas.

The issue has taken on diplomatic significance. Vice President JD Vance and South Korean Prime Minister Kim Min-seok discussed the matter last week, shortly before President Trump announced an increase in U.S. tariffs on South Korean automobiles and other imports to 25%, up from 15%. Trump cited Seoul’s alleged failure to meet commitments under a trade agreement reached last year. South Korean officials are currently in Washington attempting to resolve the dispute, though negotiations have so far stalled.

At 55, Warsh currently lectures at Stanford University and previously served on the Federal Reserve’s Board of Governors from 2006 to 2011. Federal law requires Fed governors to devote their full time to Board duties, effectively barring outside employment. While it remains unclear whether Warsh would be required to divest his corporate roles or holdings, the White House, the Federal Reserve, and Warsh himself have not commented publicly.

Federal Reserve ethics rules prohibit members from holding positions or stock in banks or financial institutions and restrict trading in individual securities following a high-profile ethics scandal in recent years. New Fed officials have up to six months to comply with these rules.

In addition to Coupang, Warsh has served on the board of UPS since 2012, earning between $285,000 and $305,000 annually from 2021 through 2024. His extensive private-sector ties are likely to remain a focal point as his nomination moves forward.