Coupang Investors Seek U.S. Probe Over South Korea’s Handling of Data Leak

Two major US investors in Coupang Inc. said that they have petitioned the US government to investigate the South Korean government and potentially impose trade remedies over what they describe as discriminatory treatment of the e-commerce company, Reuters reported.

The investors said they have asked the US Trade Representative (USTR) to investigate South Korea’s actions and impose “appropriate trade remedies. (Photo: Coupang Careers)

Tech investors Greenoaks and Altimeter said they have also filed arbitration claims against South Korea under the US–Korea Free Trade Agreement (KORUS), accusing Seoul of mounting a campaign against Coupang following a consumer data breach that has caused billions of dollars in losses for investors.

The move comes after Coupang reported in November that the personal data of some 33 million customers in South Korea had been compromised, triggering a backlash from lawmakers and the public.

That response prompted a wide-ranging investigation, as well as lawsuits from investors and consumers.

The investors said they have asked the US Trade Representative (USTR) to investigate South Korea’s actions and impose “appropriate trade remedies, potentially including tariffs and other sanctions,” arguing that the response to the breach has gone far beyond normal regulatory enforcement.

The moves could escalate a corporate dispute into a potential government-to-government trade issue, invoking US trade law and an international treaty to challenge the actions of South Korean authorities.