South Korean authorities have persistently discriminated against U.S.-based e-commerce company Coupang, intensifying their scrutiny with a series of investigations following the company’s data breach last year, according to an interim report by the U.S. House Judiciary Committee.
The report said the investigations reflect a broader pattern of long-standing economic discrimination against U.S. and other foreign companies, arguing that such practices “directly violate” a recently concluded bilateral trade agreement.
South Korean foreign ministry spokesperson Park Il said the report was one-sided, reflecting only claims by Coupang despite the government communicating with the committee for months. Allegations of discrimination against Coupang and other U.S. companies were untrue, he added.
Report Alleges A ‘Government Assault’ On Coupang
Coupang, the biggest online retailer in South Korea but based in Seattle, became the target of much regulatory scrutiny and public ire last year after news of the breach became known.
A former employee was able to access customer information associated with as many as 33.7 million accounts. Coupang later said the person only stored and retained information relating to about 3,000 accounts.
After the breach, “South Korea escalated its attacks into a ‘whole-of-government assault on Coupang’,” according to the report by the Republican-controlled committee, which said its findings were informed by documents and testimony from Coupang.
The report said more than 10 South Korean agencies initiated dozens of unrelated investigations into Coupang following the breach, issuing over 4,000 document requests and conducting at least 652 interviews with Coupang employees.
Facts About Laptop Recovery Efforts Disputed
The report alleged that South Korea’s National Intelligence Service (NIS) pressured Coupang into a risky recovery operation after last year’s data breach, including sending an employee to China and hiring divers to retrieve a discarded laptop from a river. It also claimed President Lee Jae Myung was briefed on the operation.
The NIS denied directing Coupang’s recovery efforts, saying it only requested materials from the company, while Democratic Party lawmaker Park Sun-won rejected claims of coercion.
Coupang said he regretted the circumstances behind the House Judiciary Committee’s investigation and remained committed to strengthening U.S.-South Korea trade and investment ties.
(With inputs from Reuters)
