Introduction

South Korea is pushing back against a U.S. congressional report that accuses Seoul of "discriminatory attacks" on e-commerce giant Coupang Inc., defending its legal actions as lawful and non-discriminatory while expressing regret over the report's findings.

The dispute centers on a massive personal data breach affecting more than 33 million users, which led to a record 624.9 billion won ($409 million) penalty against Coupang. The U.S. House Judiciary Committee, in an interim staff report, alleged that South Korea subjected the company to "coercive investigations, overly burdensome regulatory requirements and excessive fines and penalties" as part of a broader pattern of economic discrimination against American businesses.

Coverage Comparison

Reporting by Yonhap News — English has detailed the reactions from both Seoul and Washington. One report, published July 5, focuses on the ruling Democratic Party's response, describing the party's expression of "strong regret" over the "seriously distorted" U.S. congressional report. The party's spokesperson, Jang Yoon-mi, criticized the report for relying on "one-sided claims by Coupang and unverified data."

A separate Yonhap report from July 2 covers the foreign ministry's official response. Ministry spokesperson Park Il expressed regret that the report "appears to reflect only Coupang's claims in a one-sided manner," adding that it fails to reflect the Seoul government's position and the factual information provided to the committee.

Other reports from Yonhap News — English highlight the broader context, including a July 1 report announcing the release of the House Judiciary Committee's report, titled "Closed for Competition: South Korea's Discriminatory Attacks on American-owned Businesses." The report claims that South Korea has a "long history of engaging in economic discrimination against foreign companies" and that its treatment of U.S. businesses violates the trade agreement outlined in a joint fact sheet released last November.

Key Claims

The core allegations and defenses center on several distinct claims:

  • The U.S. House Judiciary Committee accused Seoul of discriminating against Coupang, which it described as a "consistent target" of the South Korean government. The committee's report claims that South Korea's actions, including "coercive investigation tactics, overly burdensome regulatory requirements, and massive fines and penalties," are part of a pattern of "weaponizing" regulatory discretion to shield domestic industries from U.S. competition.
  • South Korea's foreign ministry maintains that "investigations and regulatory measures concerning Coupang have been conducted lawfully under South Korean law and have been implemented in a fair and non-discriminatory manner, regardless of nationality."
  • The ruling Democratic Party also rejected the discrimination claim, stating that Seoul "does not discriminate against or unfairly pressure companies based on nationality." The party urged Coupang to "stop shifting responsibility to the government in order to cover up its own wrongdoing."
  • The committee's report contends that South Korea's treatment of U.S. businesses "directly violates its recent trade agreement with the United States." The report references a joint fact sheet released in November outlining trade and security agreements, which commits both governments to ensure U.S. companies are not discriminated against.
  • Context provided in Yonhap's coverage notes that Coupang's parent company spent over $1 million on lobbying activities in the U.S., and that the company's market capitalization has fallen by more than 40 percent.

Perspectives

South Korean Government and Ruling Party

Seoul maintains that its legal case against Coupang was conducted fairly and without regard to nationality. The foreign ministry expressed regret over the report's reliance on Coupang's perspective, and the ruling Democratic Party characterized the report as "seriously distorted," accusing Coupang of attempting to shift responsibility for its data breach.

U.S. House Judiciary Committee

The committee's interim staff report argues that South Korea has engaged in economic discrimination against foreign companies, using coercive investigation tactics and excessive fines to disadvantage American businesses. It claims that this treatment violates the bilateral trade agreement between the two countries.

Conclusion

The dispute underscores a clash between national legal authority and the political influence of multinational corporations, as Yonhap's analysis notes. While the U.S. House committee frames South Korea's actions as protectionist, Seoul insists its enforcement of privacy regulations is consistent with domestic law and applies equally to all companies. The South Korean foreign ministry said the government will continue consultations with the U.S. to prevent the Coupang issue from negatively impacting security discussions between the two countries.