SEOUL, March 10 (AJP) - U.S. investment firms backing Coupang Inc. have withdrawn their request for a U.S. trade investigation into South Korea’s treatment of the e-commerce company, as the dispute shifts toward an investment arbitration case under the Korea–U.S. Free Trade Agreement.
Greenoaks and Altimeter said Monday they had withdrawn a petition filed under Section 301 of the U.S. Trade Act, which had asked the Office of the United States Trade Representative (USTR) to investigate what they described as discriminatory actions by the Korean government against Coupang.
The investors said the petition was dropped because Washington has signaled plans to pursue broader Section 301 investigations into unfair trade practices affecting American technology companies, making a company-specific probe potentially redundant.
“Pursuing a standalone petition focused on a single company would be redundant,” the firms said in a statement, adding that the issue had already prompted discussions between the U.S. and South Korean governments and drawn attention from members of Congress.
The petition, filed on Jan. 22 by the investors who claim to hold a combined $1.5 billion worth of Nasdaq-trading Coupang shares, alleged that Seoul had launched a government-wide crackdown on Coupang following a major data breach, arguing that the response amounted to unfair and discriminatory treatment of a U.S. company operating in Korea.
Section 301 of the U.S. Trade Act allows Washington to investigate foreign government actions deemed unjustified or discriminatory and to impose retaliatory trade measures such as tariffs.
A USTR official confirmed the withdrawal, saying several U.S. investors in Coupang had asked that the petition be removed.
The official added that Washington will continue urging Seoul to ensure investigations into the data breach are conducted in a non-discriminatory manner and that U.S. digital service firms do not face unnecessary barriers in the Korean market.
The issue was also raised during trade meetings in Washington last week, where Trade Minister Kim Jung-kwan and Trade Deputy Minister Yeo Han-koo met separately with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer.
According to Seoul’s Ministry of Trade, Industry and Energy, Yeo conveyed the Korean government’s position that the dispute involving Coupang’s investors should not negatively affect broader Korea–U.S. trade relations.
The talks were part of a broader round of consultations following a U.S. Supreme Court ruling that struck down reciprocal tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA).
Washington has since signaled it may rely more heavily on alternative trade tools, including tariffs under Section 122, national security investigations under Section 232, and actions under Section 301.
The investors’ broader legal challenge against Seoul nevertheless remains active.
South Korea has already begun preparing its legal defense after U.S. investors formally notified the government of their intention to pursue investor–state dispute settlement (ISDS) arbitration under the Korea–U.S. Free Trade Agreement (KORUS FTA).
The Justice Ministry said it has appointed South Korean law firm Peter & Kim and U.S.-based Arnold & Porter Kaye Scholer LLP to advise the government during the initial phase of the dispute.
Officials said the firms were selected for their experience in international investment arbitration, including their previous work representing South Korea in the high-profile Lone Star dispute over the sale of Korea Exchange Bank.
The legal teams will assist during the 90-day consultation period that follows a notice of intent to arbitrate under the KORUS FTA, during which the parties may attempt to resolve the dispute before formal arbitration is filed.
The dispute stems from a cybersecurity incident disclosed by Coupang in November 2025, involving the leak of data linked to more than 30 million customer accounts. The breach triggered regulatory probes, parliamentary hearings and public criticism from Korean officials.
Coupang, founded in 2010 and often dubbed the “Amazon of Korea,” operates primarily in South Korea but is incorporated in Delaware and listed on the New York Stock Exchange, with a shareholder base dominated by U.S. investors.
Additional notices of intent have since been filed by other investors, including Foxhaven Capital, Durable Capital Associates, and Abrams Capital, expanding the group of claimants considering arbitration.
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