Coupang's U.S. Shareholders Submit ISDS Notice of Intent... Justice Ministry Vows Active Response

"South Korean Government and National Assembly Threatened Coupang on All Fronts," Claim Shareholders
Ministry of Justice: "Response Led by International Investment Dispute Response Team"

U.S. investment firms that are shareholders of Coupang have submitted a notice of intent for international investment dispute settlement (ISDS) arbitration, claiming they suffered losses due to the South Korean government's investigation into the recent personal information leak incident.

According to the legal community on January 23, U.S.-based shareholders of Coupang, including Greenoaks and Altimeter, have submitted a notice of intent for ISDS arbitration to the South Korean government, based on the Korea-U.S. Free Trade Agreement (FTA).

According to the Ministry of Justice, the claimants stated in the notice of intent that "after Coupang's personal information leak incident on December 1 of last year, the National Assembly and the executive branch have targeted Coupang with a wide range of administrative actions and threatening statements, including comprehensive investigations."

They further argued that these actions violate the Korea-U.S. FTA’s obligations of fair and equitable treatment, national treatment, most-favored-nation treatment, comprehensive protection, and the prohibition of expropriation.

A notice of intent for arbitration is a written statement sent to the respondent country expressing the claimant’s intention to initiate arbitration. It is not a formal initiation of arbitration, but formal arbitration can be filed 90 days after the submission of the notice of intent.

The Ministry of Justice stated, "Going forward, we will establish a joint response system with relevant agencies centered on the internal International Investment Dispute Response Team, and will thoroughly review the legal issues related to the notice of intent for arbitration." The ministry also added, "We will actively respond, including releasing relevant information."