On Thursday, two significant investors in Coupang urged the Trump administration to look into South Korea’s actions following accusations of “unprecedented persecution” by Senator Mike Lee (R-Utah).
Greenoaks and Altimeter, both tech investors in the e-commerce firm, voiced concern after a substantial data breach cost them billions. In response, Coupang criticized what it termed a witch-hunt and confirmed it had initiated arbitration against South Korea under the Korea-U.S. Free Trade Agreement.
Neil Mehta, the founder and managing partner of Greenoaks, remarked, “Trade agreements hold their value only if we are committed to upholding them. We are taking steps to ensure global competition follows established rules, rather than the whims of politicians.”
Greenoaks holds over $1.1 billion in Coupang shares and claims that the South Korean government’s actions have led to significant financial losses. Altimeter possesses roughly $210 million in Coupang stock.
Coupang, now the second-largest private employer in South Korea after Samsung, suffered a data breach that impacted around 33 million customers, triggering inquiries and lawsuits from both investors and consumers.
Coupang supporters assert that the severity of the breach has been exaggerated, with penalties aimed at benefiting local and Chinese competitors.
Investors are now urging the U.S. Trade Representative’s office to probe South Korea’s actions and consider “appropriate trade remedies, which might include tariffs and other sanctions.” They argue that the government’s response to the breach far exceeds standard regulatory measures.
In a statement, South Korean Prime Minister Kim Min-seok insisted that law enforcement should pursue Coupang with the same intensity they use against organized crime.
After a January visit to Washington, D.C., where South Korean Trade Minister Yeo Hankoo met with U.S. Trade Representative Jameson Greer and congressional members, he maintained that the South Korean government had not acted unfairly toward Coupang and suggested that American officials had misunderstood the situation.
“If a Korean company caused such a significant data breach in the United States, the U.S. would respond similarly. I made that clear, and I believe American officials understood,” he asserted.
Senator Lee claimed that South Korea’s treatment of Coupang is unprecedented in its unfairness.
Lee elaborated, “Imagine if U.S. Congress or the Trump administration threatened to prosecute executives at Samsung and LG just because they were successfully selling products to American customers. This is the current situation with American authorities.” He emphasized that the Lee Jae-myung administration’s actions against Coupang and its executives, who are American nationals—including one of his constituents—are unacceptable. “Coupang deserves fair access to the Korean market.”
Palantir founder Joe Lonsdale shared his perspective, stating that the South Korean government is erring by emulating China’s tactics to unfairly target American firms in favor of major Chinese tech companies. He expressed gratitude to Neil and Greenoaks for standing up for American principles, which may involve challenging sovereign interests. He added that South Korean President Lee must weigh whether the detrimental impacts on South Korean workers and trade relationships are worthwhile for benefiting the Chinese Communist Party, asserting that trade with the U.S. should be equitable.
He also mentioned, “It might be difficult to find authentic narratives in South Korea’s mainstream media, given the country’s different standards of free speech compared to the U.S.”
Reports indicated that the issue surrounding Coupang led to the U.S. Trade Representative abruptly canceling a planned trade discussion with South Korean officials last December. During the same month, the House Judiciary Committee conducted a hearing addressing South Korea’s treatment of American corporations, with leaders warning that continued harassment could lead to severe diplomatic and economic repercussions.
