House Report Accuses South Korea of Targeting Coupang, Wiping Out 40% of Value
Updated
Updated · CNBC · Jul 1
House Report Accuses South Korea of Targeting Coupang, Wiping Out 40% of Value
3 articles · Updated · CNBC · Jul 1
Summary
A House Judiciary Committee report said South Korea used regulators to discriminate against U.S. companies and mounted an “unprecedented” campaign against Coupang, alleging the pressure violated the two countries’ 2025 trade deal.
Dozens of investigations, thousands of document requests, excessive fines and threats of criminal charges against acting CEO Harold Rogers followed a 2025 data breach, even after Coupang told officials the leak was limited.
The report said Seoul publicly cited 37.55 million people as affected, while committee findings said the former employee retained data tied to about 3,000 accounts; Coupang apologized and CEO Park Dae-jun resigned.
One allegation says South Korea’s intelligence service compelled Coupang to send divers to recover the ex-employee’s laptop from a Shanghai river and then concealed its own role.
South Korea’s embassy rejected the interim report as largely based on Coupang’s unilateral claims, but the dispute adds strain to a key U.S. trade alliance already tested by regulatory clashes involving Google and Netflix.
Does the Coupang case signal a new era of regulatory risk for all foreign companies operating in South Korea?
Why does Seoul claim a data breach was 12,000 times larger than the company reported, sparking an international dispute?
Amid a $410M fine on a U.S. firm, can the vital U.S.-South Korea strategic alliance survive this economic clash?
$400 Million Data Breach Fine on Coupang Triggers U.S. House Probe Into South Korea’s Alleged Discrimination Against U.S. Companies
Overview
In July 2026, the U.S. House Judiciary Committee released an interim report alleging that the South Korean government systematically discriminated against U.S.-owned companies, focusing on Coupang. The report claimed that after a major data breach, South Korea launched a 'whole-of-government assault' on Coupang, including false accusations, public portrayals of criminality, coercive investigations, and excessive regulatory burdens. These actions were described as a breach of South Korea’s trade commitments to the U.S. In response, the South Korean government strongly denied the allegations, insisting its regulations are fair and lawful for all companies.