US Lawmakers Defend Coupang: "Korean Government Discriminates Against US Tech Firms...Witch Hunt" (Comprehensive)

House Trade Subcommittee Hearing
Claims of "Discrimination" Raised Over Coupang Data Breach Inquiry

During a U.S. Congressional hearing, claims were made that the South Korean government is unfairly discriminating against American technology companies. As an example, the recent large-scale personal data breach involving Coupang in South Korea was cited to illustrate this perspective. Yeo Han-koo, Trade Minister for Trade Negotiations at the Ministry of Trade, Industry and Energy, is conveying the South Korean government's position in Washington, D.C. and trying to persuade the U.S. administration and lawmakers, but it appears that changing perceptions will not be easy.

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

U.S. Congress. UPI Yonhap News

Chairman Smith pointed out that, in the joint fact sheet announced with the United States after the Korea-U.S. summit in November last year, South Korea promised not to discriminate against American companies and to ensure they do not face unnecessary digital trade barriers, but has since acted contrary to this pledge.

He added, "It appears that Korean regulatory authorities are already aggressively targeting American technology leaders," citing the regulatory measures against Coupang as an example. This statement defines the South Korean government and National Assembly's accountability for the large-scale Coupang data breach as discrimination, reflecting the perspective of the American political sphere on this issue.

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 American founder and Chairman of the Board of Coupang Inc.

The topic of the hearing was digital regulations in various countries that negatively affect American companies. It was held as Yeo Han-koo visited the United States to address the concerns of the U.S. government and lawmakers regarding South Korea's digital regulatory moves. From January 11 to 15, Yeo met with Jamieson Greer, U.S. Trade Representative (USTR), and hardliner Congressman Darrell Issa (Republican, California), among others, to work on alleviating concerns in the U.S. political community regarding South Korea's digital regulations.

The South Korean government maintains that digital regulations are applied equally to all companies, regardless of nationality, and therefore are not discriminatory. However, the United States continues to oppose South Korea's pursuit of digital regulations that could affect American companies, arguing that its own companies may be subject to discrimination. In particular, following the recent passage of the amendment to the Information and Communications Network Act (the so-called Disinformation Prevention Act) by the South Korean National Assembly and the Coupang data breach, voices of concern have grown louder in the American political sphere.

Although the U.S. administration has not yet issued an official position on Coupang, it is known that Coupang is lobbying both the administration and Congress, claiming it is being treated unfairly. Therefore, the possibility that the U.S. government will step in to protect its own companies cannot be ruled out.

Congresswoman Carol Miller (Republican, West Virginia) pointed out that other countries continue to try to restrict free trade in the digital sector, and said that such moves are "most evident in South Korea."

She criticized the recently passed amendment to the Information and Communications Network Act as a "censorship law," claiming that the South Korean National Assembly continues to pursue legislation targeting American companies.

She also stated that South Korea has "recently initiated a political witch hunt against two American executives," apparently referring to the investigations into Harold Rogers, interim CEO of Coupang Korea, and Bom Kim, Chairman of Coupang Inc.

Opposition party lawmakers also expressed concerns about South Korea's digital regulatory trends and the investigation into Coupang. Congresswoman Suzan DelBene (Democrat, Washington) said, "I am hearing from companies like Coupang, which is based in my district in Washington State, that Korean regulatory authorities are already breaking their promises."

She noted that the trade agreement signed during the Trump administration lacks enforcement mechanisms, and stated, "We need a congressional effort to establish digital trade norms that protect privacy, support innovation, and safeguard our companies operating overseas."