Coupang Denies Role in U.S. Investors’ Petition as Arbitration Threats Escalate
Updated (3 articles)
U.S. investors launch arbitration and request USTR Section 301 probe Greenoaks Capital Partners and Altimeter Capital Management filed notices to launch arbitration under the Korea‑U.S. free‑trade agreement and simultaneously submitted a petition to the U.S. Trade Representative demanding a Section 301 investigation of Seoul’s treatment of Coupang, citing alleged unfair practices; the firms hold more than $1.5 billion in Coupang equity and are represented by Covington & Burling LLP [2][3][1].
Investors claim Seoul’s regulators act discriminatorily across agencies The investors allege that the Korea Fair Trade Commission, National Tax Service, Ministry of Employment and Labor, Financial Supervisory Service and other bodies have intensified audits, inspections, raids and penalties toward Coupang far beyond any other firm in Korean history, portraying the enforcement as unusually aggressive as Coupang’s market share grew [2][3][1].
Government and Coupang dispute the data‑breach magnitude South Korean authorities assert the November breach exposed personal data of roughly 33.7 million customers, while Coupang maintains that the hacker accessed only about 3,000 accounts, a discrepancy that has intensified regulatory scrutiny and public concern [1][2][3].
Coupang publicly rejects any participation in the petition In a statement, Coupang affirmed it had no role in drafting or submitting the U.S. investors’ petition or arbitration filings, emphasizing that the company did not cooperate with the documents sent to the USTR or Korean officials [1].
Seoul stresses the probe is a domestic legal matter, not a trade dispute The Cheong Wa Dae clarified that the ongoing investigation into the data breach follows Korean law and should not be framed as part of a broader U.S.–Korea trade conflict, underscoring the sovereign regulatory process [3].
Sources (3 articles)
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[1]
Yonhap: Coupang denies involvement in U.S. investors' petition against Seoul government – Reports Coupang’s denial, details the investors’ petition for a USTR Section 301 probe, and notes the massive data‑breach figures and domestic backlash .
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[2]
Yonhap: Greenoaks and Altimeter move to arbitrate against Coupang, push U.S. probe into Seoul actions – Highlights arbitration filings, investors’ equity stake, claims of disproportionate regulatory pressure, and the contested prime‑minister remark .
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[3]
Yonhap: U.S. investors threaten arbitration against Coupang, seek U.S. probe over data leak – Covers arbitration notices, Section 301 request, breach scale dispute, Seoul’s stance that the probe is not a trade issue, and the cited prime‑minister comment .
Timeline
Jan 22, 2026 – Greenoaks Capital Partners and Altimeter Capital Management notify the Korean government that they will file arbitration claims under the Korea‑U.S. free‑trade agreement and ask the United States to probe Seoul’s treatment of Coupang, holding more than US$1.5 billion in equity. They send formal notices to President Lee Jae Myung and Deputy Minister Chung Hong‑sik. [3]
Jan 22, 2026 – In a separate filing to the Office of the U.S. Trade Representative, the investors request a Section 301 investigation of what they describe as “unreasonable and discriminatory” actions by the Seoul government toward Coupang, invoking the Trade Act of 1974 as the legal basis for trade remedies. [3]
Jan 22, 2026 – The South Korean probe follows a massive data‑leak allegation that the government says exposed about 33.7 million customers, while Coupang maintains that the perpetrator accessed data from roughly 3,000 accounts, underscoring the dispute over the breach’s scale. [3]
Jan 22, 2026 – Investors claim that enforcement actions across the Korea Fair Trade Commission, National Tax Service, Ministry of Employment and Labor, Financial Supervisory Service and other agencies have intensified as Coupang’s market share grew, resulting in “hundreds of audits, inspections, raids and penalties – more than any other company in Korean history.” [3]
Jan 23, 2026 – Greenoaks and Altimeter file the arbitration notice and again urge Washington to launch a USTR probe under Section 301, reiterating that they hold over US$1.5 billion in Coupang equity and that the Korean regulators’ conduct is “unreasonable and discriminatory.” [2]
Jan 23, 2026 – The investors cite a remark attributed to Prime Minister Han Duck‑soo urging regulators to pursue enforcement “with the same determination used to wipe out mafias,” a quote the prime minister’s office later says was taken out of context and deliberately distorted. [2]
Jan 23, 2026 – Coupang publicly denies any participation in the U.S. petition, stating it had no role in the Section 301 filing or the IS‑DS arbitration notice, and emphasizes that the breach affected only about 3,000 accounts, far fewer than the 33.7 million alleged by authorities. [1]
Jan 23, 2026 – Domestic business groups, including a federation of small merchants and self‑employed workers, condemn the investors’ strategy, warning that leveraging U.S. political channels threatens Korea’s sovereignty, the domestic distribution market and livelihoods, while the PSPD calls the move an attempt to undermine regulatory authority. [1]