Trump's Fed pick Warsh serves on board of firm at center of US-South Korea trade spat

• Warsh has earned nearly $325,000 annually from Coupang since 2022 and also serves on UPS's board with similar compensation, positions he must relinquish under Fed rules requiring governors to 'devote their entire time to the business of the Board'
• The Coupang issue has escalated trade tensions, with VP Vance discussing it with South Korea's PM before Trump raised tariffs on Korean autos and goods from 15% to 25%
• New Fed members have six months to comply with post-2021 rules banning individual stock purchases, derivatives, and certain securities holdings following a trading scandal that led to two regional bank presidents' resignations

Summary

Key Development: Kevin Warsh, President Trump's nominee for Federal Reserve Chair, has earned over $1 million since 2020 serving on the board of Coupang, a Seattle-based e-commerce company now central to escalating U.S.-South Korea trade tensions.

Financial Details: Warsh has served on Coupang's board since October 2019, earning approximately $325,000 annually in total compensation since 2022. He also serves on UPS's board, earning between $285,000 and $305,000 from 2021-2024.

Trade Dispute Context: Coupang faces regulatory scrutiny in South Korea following a mass data leak, with U.S. investors alleging discriminatory treatment. The issue was discussed between Vice President JD Vance and South Korean Prime Minister Kim Min-seok last week. Days later, Trump increased tariffs on South Korean autos and imports to 25% from 15%, citing unfulfilled trade deal commitments. South Korean officials are currently in negotiations but have not resolved the dispute.

Regulatory Implications: The Federal Reserve Act requires Board members to "devote their entire time to the business of the Board," prohibiting outside employment. Fed officials are also barred from holding bank positions or purchasing individual stocks, with new members having six months to comply. The White House has not commented on whether Warsh would be required to divest his holdings or the timeline for such action.

Background: Warsh, 55, previously served as Fed Governor from 2006-2011 and currently lectures at Stanford University. His potential appointment comes amid heightened scrutiny of Fed officials' financial activities following a 2021 trading scandal.