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 raised that the Korean government is unfairly discriminating against American technology companies. The recent large-scale personal information leak involving Coupang in Korea was cited as an example to support this perspective. While Yeo Han-koo, Trade Minister for Trade Negotiations at the Ministry of Trade, Industry and Energy, is conveying the Korean government's position and attempting to persuade the U.S. administration and political circles in Washington, D.C., it appears that changing perceptions will not be easy.

On the 13th (local time), Adrian Smith (Republican, Nebraska), Chairman of the House Ways and Means Committee's Subcommittee on Trade, asserted during a trade subcommittee hearing, "From my observation, 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, Korea promised not to discriminate against U.S. companies and to prevent them from facing unnecessary digital trade barriers, but has since taken actions contrary to these commitments.

He stated, "Korean regulatory authorities already appear to be aggressively targeting America's technology leaders," and cited the "discriminatory regulatory measures against Coupang" as an example. This remark frames the Korean government's and National Assembly's scrutiny over Coupang's large-scale personal information leak as discrimination, reflecting the viewpoint of the American political establishment on this issue.

Coupang's Korean subsidiary 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 Coupang Inc. Chairman Kim Beom-seok, a U.S. national and founder.

The topic of the hearing was digital regulations in various countries that negatively impact American companies. The hearing was held as Yeo Han-koo, Trade Minister for Trade Negotiations at the Ministry of Trade, Industry and Energy, visited the United States to address concerns from the U.S. government and political circles regarding Korea's digital regulatory moves. From January 11 to 15, Yeo met with Jamieson Greer, a representative of the U.S. Trade Representative (USTR), and hardliner Representative Darrell Issa (Republican, California), among others, to alleviate U.S. political concerns about Korea's digital regulations.

The Korean government maintains that digital regulations are applied equally to companies from all countries, including the United States, and therefore do not constitute discrimination. However, the U.S. has consistently opposed Korea's push for digital regulations that could affect American companies, arguing that such measures could result in discriminatory treatment. In particular, following the recent passage of the National Assembly's amendment to the Information and Communications Network Act (the Disinformation Prevention Act) and the Coupang personal information leak, there has been growing criticism from the U.S. political establishment.

The U.S. administration has not yet issued an official position regarding Coupang, but 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 may take action to protect its own companies cannot be ruled out.

Representative Carol Miller (Republican, West Virginia) pointed out that other countries continue to try to block free trade in the digital sector, stating that this trend is "most evident in Korea."

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

Additionally, she claimed that Korea "has recently launched a political witch hunt against two American executives," referring to investigations targeting Harold Rogers, acting head of Coupang Korea, and Chairman Kim.

Opposition party lawmakers have also expressed concerns about Korea's digital regulatory trends and the investigation into Coupang. Representative Suzan DelBene (Democrat, Washington) stated, "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 added that the trade agreement signed under the Trump administration lacks enforcement tools, and emphasized, "Congressional efforts are needed to establish digital trade norms that protect privacy, support innovation, and safeguard our companies operating overseas."