U.S. Lawmakers Defend Coupang: "Korean Government Discriminates Against American Tech Companies"

During a U.S. Congressional hearing, claims were raised that the Korean government is unfairly discriminating against American technology companies such as Coupang.

On the 13th (local time), Adrian Smith, Chairman of the House Ways and Means Subcommittee on Trade (Republican, Nebraska), stated at the subcommittee hearing, "From my observation, Korea continues to pursue legislative efforts that clearly target American companies."

United States Capitol. Photo by UPI News Agency

Chairman Smith pointed out that, although Korea pledged in a joint fact sheet announced with the United States after the Korea-U.S. summit in November last year not to discriminate against American companies and to ensure they do not face unnecessary digital trade barriers, it has taken actions contrary to this promise. In this context, he cited "discriminatory regulatory measures against Coupang" as an example. He argued that the Korean government's and National Assembly's moves to hold Coupang accountable for a large-scale personal data breach constitute "discrimination."

The Korean subsidiary of Coupang is 100% owned by its parent company, Coupang Inc., which is listed on the U.S. stock exchange. More than 70% of the parent company's voting rights are held by Bom Kim, the U.S. national founder and Chairman of the Board of Coupang Inc.

The hearing was held to discuss digital regulations in various countries that negatively impact American companies.

Congresswoman Carol Miller (Republican, West Virginia) pointed out that other countries continue to try to block free trade in the digital sector, stating that such moves are "most evident in Korea." She criticized the Korean National Assembly for continuing to pursue legislation targeting American companies and referred to the recently passed amendment to the Information and Communications Network Act as a "censorship law." She further claimed that Korea "has recently launched a political witch hunt against two American executives," apparently referring to the investigations into Harold Rogers, Acting Representative of Coupang Korea, and Bom Kim, Chairman of Coupang Inc.

Democratic Party lawmakers also expressed concerns about Korea's digital regulatory trends and the investigation into Coupang. Congresswoman Suzan DelBene (Democrat, Washington) said, "I am hearing from companies in my district, such as Coupang in Washington State, that Korean regulatory authorities are already violating their commitments."

She stated that the trade agreement signed by the Trump administration lacks enforcement tools, and emphasized, "Congressional leadership is needed to establish digital trade norms that protect privacy, support innovation, and safeguard our companies operating overseas."