White House official says Coupang 'singled out' by Lee gov't, warns against 'unfair' trade practices

Lead

A White House official has said that e-commerce giant Coupang Inc. is being "singled out" by South Korean President Lee Jae Myung's administration, expressing concern over what Washington called "discriminatory" targeting of the U.S.-listed firm. The official's remarks, made in response to a request for comment from Yonhap News Agency, followed the release of a House Judiciary Committee interim staff report accusing South Korea of "discriminatory attacks" on Coupang and other American-owned businesses.

The official said the administration is "deeply concerned with the ROK government's discriminatory targeting of U.S. technology companies," using the acronym for the Republic of Korea. "By any reasonable measure, Coupang is being singled out by the Lee government. The Trump administration will not tolerate unfair trade practices, including those that limit market access for U.S. digital services," the official said.

Coverage Comparison

The White House official's remarks were reported by Yonhap News Agency in several dispatches, with varying emphasis. One report framed the issue as a "troubling escalation" in bilateral tensions, suggesting that political pressure should not risk undermining the alliance. Another noted that South Korea and the United States share an understanding on managing the Coupang issue "stably" so that it does not burden bilateral relations, as stated by Seoul's top envoy to Washington, Ambassador Kang Kyung-wha.

A separate report highlighted a warning from Fred Fleitz, a former chief of staff of the National Security Council during President Donald Trump's first term, who wrote in an opinion piece on Newsmax that the dispute could strain the Seoul-Washington alliance. Fleitz called for the two countries to address the commercial matters "head-on" and to demonstrate that their partnership prioritizes "strategic imperatives" over "parochial" disputes.

Key Claims

The House Judiciary Committee's interim staff report, which the White House official was responding to, accused South Korea of "discriminatory attacks" on Coupang and other American-owned businesses. The report came after South Korean authorities investigated Coupang over a massive personal data leak, which is believed to have affected more than 33 million users, about 68 percent of the country's population, according to Yonhap. (One Yonhap report cited the figure as more than 37 million users, while another said more than 33 million, reflecting the evolving nature of the investigation.)

The investigation into Coupang arose from the data breach, which was disclosed in November, and regulatory scrutiny extended to corporate governance and competition matters, as reported by Yonhap. Coupang, whose Korea business generates more than 90 percent of the company's total revenue, has been under intense public criticism and scrutiny in South Korea following the disclosure.

The committee report also came amid concerns that Coupang's extensive lobbying activities in the U.S. capital could escalate diplomatic tensions. According to Lobbying Disclosure Act reports on the Senate website, Coupang had spent more than $1 million on lobbying activities in the U.S., including efforts involving the White House and Congress, since its data leak scandal erupted.

Additionally, Yonhap reported that President Donald Trump traded Coupang stock multiple times before retaining an investment in the company, though this detail appears in a single report and has not been independently corroborated by other sources in this material.

Perspectives

White House / U.S. Administration

The White House official expressed deep concern over what they called "discriminatory targeting" of U.S. technology companies and asserted that Coupang is being "singled out" by the Lee government. The official warned that the Trump administration will not tolerate unfair trade practices, including those that limit market access for U.S. digital services.

South Korean Government

South Korea's foreign ministry expressed regret over the House committee report, saying it appears to reflect Coupang's claims in a "one-sided" manner and fails to include Seoul's position and the "factual information" it has offered to the committee. Foreign ministry spokesman Park Il said 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.

Former U.S. Official Fred Fleitz

Fred Fleitz, a former chief of staff of the National Security Council, warned that the dispute over Coupang could strain the broader U.S.-South Korea alliance. He emphasized the importance of the partnership, which he said deters North Korea's nuclear brinkmanship, counters Chinese assertiveness, and includes trilateral cooperation with Japan. He called on Seoul and Washington to address the commercial matters "head-on" to avoid frictions spilling into security consultations and investor confidence.