U.S. Investment Firm Accuses South Korea of Discrimination Against American Companies

A major investment firm in the U.S. announced on Thursday its intention to pursue legal and trade actions against South Korea, claiming the country discriminates against American businesses. Green Oaks framed this move as part of a broader trend favoring Chinese competitors.

Green Oaks has filed a notice indicating its intent to take the matter to investor-state arbitration under the U.S.-Korea Free Trade Agreement. Additionally, it has asked the Office of the United States Trade Representative to investigate South Korea under Section 301 of the Trade Act, specifically concerning the Investment Chapter, established back in 1974.

Neil Mehta, the founder and managing partner of Green Oaks, commented, “When a close ally penalizes American companies for their successes, it undermines important partnerships and opens the door to competitors who don’t play by the rules. It’s bad for U.S. investors, for Korean consumers and workers, and it harms U.S.-Korea relations.”

The focus of the filing is Coupang, a U.S. company that allegedly faces a “multi-year pattern” of discriminatory practices—a pattern of audits, raids, and increasing regulatory pressure that supposedly overshadow what domestic firms experience in South Korea and China. Green Oaks alleges that after a data incident in 2025, the South Korean government engaged numerous agencies, including tax and labor departments, to conduct raids, block business agreements, and pressure the National Pension Fund to divest from Coupang.

In the aftermath of a leak affecting around 33.7 million customer accounts, surveillance activities in South Korea have reportedly intensified. A former employee has been charged with unauthorized access. Coupang has indicated that while the attackers had data on about 3,000 accounts and 2,609 entrance codes, the information was deleted before it could be shared.

Green Oaks also touches on geopolitical issues, pointing to a recent meeting between South Korean President Lee Jae-myung and Chinese President Xi Jinping, where a “new stage” in relations was discussed. This context raises further questions about the strain in U.S.-Korea relations.

Some U.S. officials have openly criticized South Korea’s treatment of Coupang. Robert C. O’Brien, a former National Security Adviser, expressed concerns that targeting Coupang could lead to broader obstacles for American companies. Other Republican representatives have echoed this sentiment, denouncing South Korea’s actions in social media posts.

House Judiciary Chairman Jim Jordan stated clearly, “Harassment of American businesses is unacceptable.” This sentiment reflects a growing frustration surrounding the treatment of U.S. firms abroad, illustrating a complex and tense landscape in international trade relations.