South Korean Trade Minister Urges USTR to Keep Coupang Breach Probe Separate From Trade Dispute

Updated 2026-01-24 05:18:00+00:00 (18 articles)

Trade Minister Pushes for Separate Probe Handling Yeo Han‑koo met U.S. Trade Representative Jamieson Greer at Davos and again in Washington, urging the USTR to treat the Coupang data‑breach investigation as an independent regulatory matter rather than a trade issue. He argued the probe is non‑discriminatory and would have been launched against any Korean firm facing a similar breach [1].

Data Breach Scale Disputed Between Government and Coupang Korean authorities estimate the November leak exposed personal data of roughly 33.7 million to 34 million customers, while Coupang maintains that the perpetrator accessed only about 3,000 accounts. Both figures appear in multiple reports, highlighting a stark discrepancy in the breach’s reported magnitude [2][7][8].

U.S. Investors File Arbitration and Petition Greenoaks Capital Partners and Altimeter Capital Management filed an ISDS notice and a petition to the USTR invoking Section 301 of the Trade Act, seeking trade remedies and alleging “unreasonable” and discriminatory Korean enforcement. The investors, who hold more than US$1.5 billion in Coupang equity, claim the government’s actions are unprecedentedly aggressive [3][2][7][8].

Seoul Denies Discrimination and Frames Probe as Domestic Prime Minister Kim Min‑seok told U.S. lawmakers that Seoul does not discriminate against Coupang and that the investigation follows standard law, not political bias. The Blue House reiterated that the case is a domestic regulatory matter and cited a separate Georgia‑worker incident to illustrate the lack of nationality‑based targeting [4][6][10].

Civic Groups Condemn Investor Petition as Sovereignty Threat The People’s Solidarity for Participatory Democracy and a coalition of 135 civic organizations condemned the U.S. investors’ petition, labeling it an external pressure on Korean sovereignty and announcing a press conference outside the U.S. Embassy [5].

Follow‑Up Talks Aim to Prevent Trade‑Row Escalation After Davos, Yeo continued discussions in Washington with USTR officials and congressional members, emphasizing the probe’s transparency and seeking to reassure U.S. partners that the issue will not spill into a broader Korea‑U.S. trade dispute [1][9][10].

Sources (10 articles)

Timeline

June 2025 – A cyber‑attack infiltrates Coupang’s systems, accessing customer data through a “front‑door” breach that later affects millions of users[18].

Dec 1, 2025 – Korean newspapers report that the breach has exposed personal information of 33.7 million customers, roughly three‑quarters of the population, after being discovered in June and disclosed only in December[18].

Dec 2, 2025 – Class‑action lawsuits are filed against Coupang, and the ruling party announces a new special‑counsel investigation into alleged political misconduct, underscoring the nation’s heightened political tension a year after martial‑law was lifted[17].

Dec 17, 2025 – The National Assembly’s policy committee approves a bill that raises fines for large‑scale data breaches to 10 % of a company’s revenue, a response directly triggered by the Coupang incident; the measure is not retroactive, so Coupang faces the existing penalty framework for the current breach[16].

Dec 24, 2025 – Former U.S. national security adviser Michael O’Brien denounces the Korean parliament’s scrutiny of Coupang, calling it “aggressive targeting” and urging a coordinated U.S. response to protect American firms, linking the episode to former President Trump’s trade‑rebalance policy[1].

Jan 13, 2026 – Rep. Adrian Smith accuses Korean regulators of discriminatory enforcement against U.S. tech firms, citing Coupang as a prime example; Rep. Carol Miller and policy expert Nigel Cory echo concerns about due‑process gaps, while Rep. Darrell Issa warns of “consequences” for hostile actions toward American companies[14].

Jan 13, 2026 – In a separate statement, Rep. Darrell Issa meets Trade Minister Yeo Han‑koo and posts that “there are consequences for state‑sponsored hostile actions toward U.S. firms,” pledging congressional and administration support to protect U.S. businesses[15].

Jan 15, 2026 – Trade Minister Yeo Han‑koo travels to Washington, meets senators and representatives, and stresses that the Coupang data‑breach probe—affecting about 34 million customers—should remain a domestic regulatory matter, not a bilateral trade dispute[13][12].

Jan 18, 2026 – A senior official at Cheong Wa Dae states that the Coupang investigation is strictly domestic and should not be framed as a U.S.–Korea trade issue, while U.S. lawmakers continue to voice concerns over alleged discriminatory actions[11].

Jan 19, 2026 – The Korean American Public Action Committee warns that the leak of roughly 33 million accounts could damage Seoul‑Washington relations if not handled transparently, urging Coupang to disclose the full scope and provide fair compensation[10].

Jan 22, 2026 – U.S. investors Greenoaks Capital Partners and Altimeter Capital Management notify the Korean government of intent to file arbitration under the Korea‑U.S. FTA and request a Section 301 USTR probe, alleging “unreasonable and discriminatory” treatment and citing the 34 million‑person breach as evidence of excessive regulatory pressure[8].

Jan 22, 2026 – The same investors submit a formal ISDS notice, claiming the Korean response to the data breach violates fair‑and‑equitable‑treatment obligations and could trigger arbitration 90 days after filing[9].

Jan 23, 2026 – Prime Minister Kim Min‑seok tells U.S. lawmakers on Capitol Hill that Seoul does not discriminate against Coupang, comparing the case to a September detention of Korean workers in Georgia and emphasizing the strong Korea‑U.S. alliance[5].

Jan 23, 2026 – The People’s Solidarity for Participatory Democracy and a coalition of 135 civic groups condemn the investors’ petition as a breach of Korean sovereignty and schedule a press conference outside the U.S. Embassy in Seoul[7].

Jan 23, 2026 – Coupang publicly states it had no role in the U.S. investors’ petition and clarifies that the breach accessed data from only ≈3,000 accounts, far fewer than the 33‑million figure cited by regulators[3].

Jan 23, 2026 – Greenoaks and Altimeter file detailed arbitration claims, alleging that Korean agencies have imposed “more penalties than any other company in Korean history” on Coupang as its market share grew, and they cite a prime‑ministerial remark about “wiping out mafias” as evidence of targeted enforcement[4].

Jan 24, 2026 – Trade Minister Yeo Han‑koo meets U.S. Trade Representative Jamieson Greer in Davos and later at Incheon Airport, urging the USTR to treat the Coupang probe as a non‑discriminatory investigation separate from broader Seoul‑Washington trade issues[2].