Key facts
- A U.S. House committee report accuses South Korea of "discriminatory attacks" on U.S. companies, including Coupang.
- The report claims South Korea's actions violate a recent bilateral trade agreement.
- Accusations include coercive investigation tactics, burdensome regulations, and large fines against American businesses.
- Coupang faced criticism and investigations following a massive data leak affecting over 33 million users.
- South Korean authorities imposed a fine of over $410 million on Coupang last month.
A U.S. House committee has released a report accusing South Korea of engaging in "discriminatory attacks" against U.S. companies, most notably e-commerce giant Coupang. The 35-page interim staff report, titled "Closed for Competition: South Korea's Discriminatory Attacks on American-owned Businesses," asserts that Seoul's treatment of these firms violates a bilateral trade agreement established last year.
The committee's report highlights concerns over South Korea's investigations into Coupang's massive data leak, which reportedly affected over 33 million users. It claims that Coupang has been a "consistent target" of the South Korean government, citing "coercive investigation tactics, overly burdensome regulatory requirements, and massive fines and penalties" designed to disadvantage American companies and protect domestic industries. The report argues this pattern "directly violates" the commitments made in a joint fact sheet released in November concerning digital services.
Amidst ongoing concerns about Coupang's lobbying efforts in Washington, the report details that the company spent over $1 million on lobbying since its data leak scandal erupted in November. The committee criticizes South Korea's investigation process as a "harassment" campaign, noting that Coupang's market capitalization has fallen by more than 40 percent as a result. Last month, South Korean authorities fined Coupang over $410 million, an amount the report describes as the largest ever imposed on a single company, exceeding fines for more serious data breaches by South Korean firms. The committee stated it will continue to oversee such foreign anti-competitive regimes to inform potential legislative reforms.