South Korea’s government is pushing back against a U.S. congressional report that accused Seoul of treating Coupang, a Seattle-based e-commerce company listed on U.S. markets, unfairly. The dispute comes after South Korean authorities hit Coupang with a record 625 billion won — roughly $403 million — fine in June, stemming from a massive data breach that affected millions of South Korean customers.
South Korea’s Foreign Ministry spokesperson Park Il voiced regret over the report, which was released Wednesday by the House Judiciary Committee. He said the document reflected “only Coupang’s unilateral claims” and left out Seoul’s perspective entirely.
Park maintained that South Korean authorities handled the Coupang case strictly according to domestic law, rejecting any suggestion that the company was singled out or treated unfairly. “Our handling of the Coupang case has focused on handling the personal data breach and protecting consumers, and our investigation into the company and the related measures have been carried out lawfully and without discrimination under relevant domestic laws,” he said.
He added that claims Seoul “carried out discriminatory investigations” and “imposed unfair regulations” on the company did not hold up to scrutiny.
The 35-page House Judiciary Committee report alleged that South Korea’s antitrust authorities used “coercive investigation tactics” and conducted a “harassment campaign” against Coupang. The report framed those actions as part of a broader pattern of discrimination targeting American-owned businesses operating in South Korea.
South Korea’s Personal Information Protection Commission, after issuing the fine in June, said the breach exposed the personal data of more than 37 million individuals, including 33 million Coupang customers. The commission noted that Coupang failed to report the breach within the legally required 72-hour window and that the company’s security measures were inadequate — pointing out that the breach did not involve sophisticated hacking and could have been prevented with basic safeguards.
According to South Korean officials, a former Coupang employee used a stolen security key to gain unauthorized access to customer accounts. The company’s weak security protocols allowed the unidentified Chinese developer to continue accessing all customer data even after departing from the company.
Coupang issued an apology for the breach but announced it would contest the fine in administrative court, arguing that the privacy regulator failed to adequately take into account the company’s steps to improve security and limit further damage.
In a statement emailed to reporters, Coupang said: “We regret the circumstances that led to the House Judiciary Committee’s investigation, and we remain committed to finding a constructive resolution so Coupang can once again serve as a bridge to strengthen the U.S.-Korea alliance, accelerating trade and investment that benefits both countries.”
Coupang describes itself on its website as a “U.S. technology and Fortune 150 company” that connects American businesses and brands to international markets. Despite its U.S. headquarters in Seattle, the bulk of the company’s revenue comes from South Korea, where it is widely known for its speedy delivery of food, groceries, and everyday consumer goods.
South Korea’s Yonhap News Agency, citing U.S. Senate lobbying disclosure records, reported that Coupang has spent more than $1 million on lobbying efforts in the United States since the data breach controversy surfaced in November. Those efforts have reportedly included outreach to both the White House and Congress.
