Overview
- The House Judiciary Committee released a 35-page interim staff report on Wednesday, July 1, saying South Korean authorities ran a coordinated, “whole-of-government” campaign of probes and enforcement that disproportionately targeted Coupang and other U.S.-linked companies.
- The report catalogs dozens of investigations, more than 4,000 document requests, hundreds of interviews, threats of criminal charges and an allegation that the National Intelligence Service pressured a recovery operation in China.
- Seoul and the NIS strongly deny the report’s characterizations and say their actions were lawful, non-discriminatory, focused on consumer protection, and aimed at responding to a major 2025 data breach.
- The dispute has real economic effects: South Korea’s privacy regulator fined Coupang about 625 billion won in June and the company’s market value has fallen by over 40 percent while Coupang has increased lobbying in Washington.
- U.S. officials have expressed concern about discriminatory targeting, and lawmakers warn the issue could strain trade commitments and complicate upcoming security talks between Washington and Seoul.