"Mafia Crackdown? No Mention of Coupang"... Government Refutes Claims by U.S. Investors

It has been reported that Coupang's U.S.-based investors cited remarks made by Prime Minister Kim Minseok in support of their claims while requesting international investment dispute settlement (ISDS) arbitration against the South Korean government. The government immediately refuted this, calling it an "arbitrary editing and intentional distortion."

On January 23, the Office for Government Policy Coordination explained in a press release that the ISDS arbitration request submitted to the Korean government the previous day by Coupang's investors, Greenoaks and Altimeter, contained such distortions and errors.

On December 19 of last year, during a work report from the Financial Services Commission and the Fair Trade Commission, Prime Minister Kim stated, "Follow the principles, don't worry about staffing, and impose strong economic sanctions." He added, "I believe we must establish market order with the same determination as when cracking down on the mafia." Coupang's U.S. investors argued in their ISDS arbitration request that these remarks were "targeted at Coupang."

In response, the Office for Government Policy Coordination stated, "(These remarks) were intended to strictly correct the unfair practices that have accumulated in the Korean economy and to establish a fair market order that earns the trust of investors." The office emphasized, "They were not meant to suggest strong sanctions or punishment against any specific company or companies from a particular country. In fact, the remarks did not mention any specific company or country, including Coupang, at all."