Former U.S. Chamber of Commerce Vice President
Tami Overby, DGA Group Partner
“Korea and Coupang Need Each Other”
An American consultant has suggested that the South Korean government and Coupang should work together to find a constructive solution regarding last year's "Coupang personal information leak incident." In particular, he pointed out that Beomseok Kim, Chairman of Coupang Inc., should have visited the National Assembly and taken responsibility immediately after the controversy arose. During Coupang's fourth-quarter and annual earnings conference call on this day, Chairman Kim bowed his head for the first time in an official setting, stating, "We failed to meet customer expectations."
Tami Overby, Partner at consulting firm DGA Group, made these remarks on the 26th (local time) at a seminar in Washington, D.C., hosted by the National Bureau of Asian Research (NBR) under the theme "Changes in ROK-U.S. Tech and Trade Relations," saying, "Korea needs Coupang, and Coupang needs Korea."
Overby, who previously served as Vice President for Asia at the U.S. Chamber of Commerce, stated, "About 90% of Coupang's revenue comes from Korea, 33 million Koreans use Coupang, and many small and medium-sized enterprises reach 51 million consumers through Coupang." She emphasized that the South Korean government and Coupang are in a mutually dependent "symbiotic relationship" and highlighted the need for both sides to initiate dialogue and seek constructive solutions.
Former Vice President Overby argued that the response of the South Korean government to Coupang's customer data leak was unprecedented. She said, "I have never seen the Korean government respond so quickly and comprehensively to a single company." She added, "Now, the U.S. Congress, administration, media, and the American public all know what Coupang is, and the prevailing perception is that the South Korean government does not appear to be treating Coupang fairly."
Overby, revealing that Coupang is one of the companies she consults for, further commented, "Coupang may not want to hear this, but in my personal opinion, it was a mistake for Beomseok Kim, the founder and Chairman of Coupang Inc., to ignore the Korean National Assembly's request for his appearance." She added, "Just as Lee Jae-yong, Chairman of Samsung Electronics, or Chey Tae-won, Chairman of SK Group, appeared before the National Assembly and apologized when there were national controversies, Chairman Kim should have gone to the National Assembly and apologized."
During the seminar, Nigel Cory, a non-resident fellow at the National Bureau of Asian Research, commented that the South Korean government's regulatory measures are not limited to Coupang alone and suggested that the government should focus on addressing non-tariff barriers in the digital sector during trade negotiations with the United States. He noted, "What stands out in the current situation is that the Trump administration and the U.S. Trade Representative (USTR) made it clear to the Korean government that digital non-tariff barriers are a top priority."
He went on to say, "The Trump administration expects this issue to be resolved in the ongoing trade negotiations, and if no action is taken, it is highly likely they will take measures, most likely under Section 301 of the Trade Act." Section 301 provides a legal basis for the USTR to impose tariffs on a trading partner based on findings of unfair trade practices. Researcher Cory had previously appeared as an expert witness at a U.S. House hearing on overseas digital regulatory trends on January 13.
Meanwhile, on this day (5:30 p.m. U.S. Eastern Time, 7:30 a.m. Korean Standard Time on the 27th), Chairman Kim apologized for the personal information leak incident that occurred late last year during Coupang's fourth-quarter and annual earnings conference call. This was the first time Chairman Kim had delivered a verbal apology in an official setting. He said, "We failed to meet our customers' expectations. I would like to once again apologize for the concern and inconvenience caused by this incident," bowing his head.
On this day, Coupang Inc., Coupang's parent company listed on the New York Stock Exchange, closed at $18.71 per share (Class A), up 1.91%. After-hours trading saw a further slight decline of 0.034%. The share price plunged immediately after the earnings announcement, dropping below $18 per share at one point, but rebounded as the conference call progressed, reducing the losses.
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