Key facts
- A U.S. House committee report accuses South Korea of "discriminatory attacks" on Coupang and other U.S. firms.
- The report alleges South Korea subjected U.S.-owned companies to "coercive investigations, overly burdensome regulatory requirements and excessive fines and penalties."
- South Korea's foreign ministry disputes the report, stating it reflects "only Coupang’s unilateral claims" and fails to include Seoul's position.
- Seoul asserts its investigation into Coupang and subsequent measures were conducted lawfully under domestic law and without discrimination.
- Coupang was fined 625 billion won ($403 million) in June for a data breach affecting over 37 million people.
A U.S. House committee report has accused South Korea of "discriminatory attacks" against U.S. firms, including the e-commerce giant Coupang, alleging violations of a trade deal. The report from the House Judiciary Committee claims that Coupang has been a "consistent target" of the Seoul government, which allegedly subjected U.S.-owned companies to "coercive investigations, overly burdensome regulatory requirements and excessive fines and penalties" to favor domestic businesses.
South Korea's Foreign Ministry spokesperson Park Il expressed regret over the report, stating it reflected "only Coupang’s unilateral claims" and failed to include Seoul's position. Park asserted that the investigation into Coupang and the measures taken were carried out under domestic law, denying any discrimination or unfair regulation.
The dispute arises from a record 625 billion won ($403 million) fine imposed on Coupang in June over a massive data breach. The Personal Information Protection Commission stated that the personal information of over 37 million people, including 33 million Coupang customers, was exposed. The commission noted that Coupang failed to report the breach within the legally required 72-hour period and that the company's inadequate security awareness and safeguards allowed a former employee to access customer data.
Coupang has apologized for the breach but announced its intention to challenge the fine in administrative court, arguing the privacy regulator did not adequately consider the company's efforts to enhance security. Coupang stated it regrets the circumstances that led to the House committee's investigation and remains committed to finding a constructive resolution to strengthen the U.S.-Korea alliance and benefit both countries.
Coupang, described as a "U.S. technology and Fortune 150 company," generates most of its revenue in South Korea. Since the data breach scandal, Coupang has reportedly spent over $1 million on lobbying efforts in the U.S., including engagement with the White House and Congress.