SEOUL, January 22 (AJP) -Two major U.S. investors in Coupang Inc. have asked the U.S. government to investigate its Korean counterpart over what they describe as discriminatory treatment of the U.S.-based e-commerce platform commanding dominant market in Korea, raising the prospect that a corporate dispute could spill into a bilateral trade issue.
Technology investment firms Greenoaks and Altimeter said Thursday that they have petitioned the U.S. Trade Representative (USTR) to examine South Korea’s actions under U.S. trade law and consider remedies, including tariffs or other measures. Separately, the investors notified the South Korean government of their intent to file arbitration claims under the U.S.–Korea Free Trade Agreement (KORUS).
The moves follow a consumer data breach disclosed by Coupang in November, after which a number of Korean authorities launched sweeping investigations and lawmakers called for tougher penalties. The investors argue that the government response went far beyond normal regulatory enforcement and has inflicted heavy losses on shareholders.
Coupang reported that personal data of about 33 million users in South Korea had been compromised, triggering public backlash, regulatory scrutiny and a wave of lawsuits from consumers and investors. Since the disclosure on Nov. 30, Coupang’s New York–listed shares have fallen about 27 percent, according to market data.
Greenoaks and Altimeter allege that South Korean authorities mounted a “whole-of-government” response against Coupang, involving labor, tax, financial and customs probes that they say are unrelated to the data incident. They claim the actions amount to discriminatory treatment of a U.S.-based company operating in Korea.
“Our main concern is the scale and speed of the government’s response, which has led to significant damages and threatens the value of our investment,” said Marney Chee, a partner at law firm Covington, which represents Greenoaks.
The investors said their notice under KORUS triggers a 90-day consultation period before full arbitration proceedings can begin. Separately, the USTR has up to 45 days to decide whether to launch a formal investigation under Section 301 of the U.S. Trade Act of 1974, a step that could lead to hearings and potential U.S. countermeasures.
Seoul has stood firm on its stance and rejected claims of discrimination.
President Lee Jae Myung, who previously called for tougher penalties following the data breach, said at a news conference Wednesday that South Korea would address the issue “fairly according to the law and principles,” emphasizing the country’s sovereignty.
Trade Minister Yeo Han-koo said earlier this month that the government was not singling out Coupang and that U.S. officials had “misunderstandings.” Speaking after meetings in Washington with USTR Jamieson Greer and members of Congress, Yeo said the data breach — which he described as unprecedented — and Coupang’s response should be treated separately from trade and diplomatic issues.
Greenoaks was founded by Neil Mehta, a Coupang board member. Greenoaks and related entities hold more than $1.4 billion worth of Coupang shares, according to filings. In 2023, Coupang partnered with Greenoaks to acquire luxury fashion platform Farfetch in a $500 million deal.
Altimeter is a technology-focused investment firm investing across public and private markets.
Copyright ⓒ Aju Press All rights reserved.