House panel says South Korea targeted Coupang, violating 2025 U.S. trade deal

Seoul rejected the House Judiciary Committee’s allegations, saying its record fine and investigation of Coupang followed domestic law and focused on consumer protection after a breach affecting more than 37 million people.

Summary

South Korea pushed back on a House Judiciary Committee report accusing Seoul of discriminating against Coupang, saying its investigation and record 625 billion won ($403 million) fine were conducted lawfully under domestic rules after a 2025 data breach exposed personal information tied to more than 37 million people, including 33 million Coupang customers. Foreign Ministry spokesperson Park Il said the U.S. panel’s report reflected only Coupang’s claims and omitted Seoul’s position, rejecting allegations of unfair regulation or discriminatory treatment. The House committee had said South Korean authorities used coercive tactics, opened numerous probes, sent extensive document requests and threatened criminal charges after the breach, while also arguing the campaign violated a 2025 U.S.-South Korea trade deal and contributed to a drop of more than 40% in Coupang’s market capitalization. South Korea’s privacy regulator has said the breach stemmed from weak internal safeguards, including a stolen security key that let a former employee continue accessing customer data, and that Coupang failed to notify authorities within the 72-hour window required by law. Coupang apologized and said it would challenge the penalty in administrative court.

Terms & Concepts
  • administrative court: A court that reviews disputes over government or regulatory decisions, including fines and enforcement actions.