The U.S.-South Korea Alliance: A Dissonance in Trust

The alliance between the United States and South Korea is crucial. President Trump acknowledges this and has made significant strides in foreign trade. However, beneath the friendly interactions, there’s a tension that seems to be eroding mutual trust.

This disconnect is glaringly evident when we look at the experiences of two corporate giants on either side of the Pacific: Hyundai and Coupang.

When Hyundai was found in violation of U.S. laws, the Korean government sought leniency from Washington, which obliged in the interest of maintaining a cooperative relationship. In contrast, when Coupang, an American firm, faced a minor data breach in Korea, and U.S. officials raised concerns about an excessive response, South Korea cracked down hard.

This kind of hypocrisy, especially from a country that receives extensive support from the U.S., needs to be addressed.

Last September, Hyundai’s battery plant in Georgia was raided by U.S. authorities, leading to the detention of hundreds of Korean nationals. Many of these individuals were working unlawfully on business visas, violating immigration laws. Understandably, South Korea was enraged. Officials accused the U.S. of humiliating their manufacturing leader, especially after Hyundai had announced major investments in electric vehicles, and they demanded concessions from Washington, which were granted.

Now, let’s look at the other side of the coin.

Coupang, a tech company based in the U.S. that has invested heavily in South Korea, suffered a data incident last autumn. A former employee accessed a database containing customer information, which included names, addresses, and order histories—not highly sensitive data. Importantly, no financial details or passwords were compromised, and no customer was harmed.

However, South Korea hurried to impose a staggering $409 million fine on Coupang—the largest privacy penalty ever in the country.

This was just the beginning. A report from Chairman Jim Jordan and the U.S. House Judiciary Committee revealed that South Korea initiated a full-scale government campaign against Coupang, involving 11 different agencies and over 40 investigations—most unrelated to data security. Investigators conducted numerous interviews and made extensive document requests.

No South Korean firm has faced such a broad-based assault over a data incident. The Committee has described this as a “coercive” and protectionist effort against a company that has long been pursued through legal channels.

The situation escalated further.

According to the same report, Korean regulators sought to charge Coupang’s American CEO criminally—despite the company’s efforts, following South Korea’s intelligence directives, to recover compromised devices and secure the data. Subsequently, Seoul distanced itself from any involvement in that operation.

This behavior doesn’t reflect the actions of a true ally.

In fact, some of the largest fines in South Korea’s history have been levied against American companies. It took almost two decades of pressure from Washington for Seoul to allow Google Maps to operate without restrictions—a concession that is still pending implementation.

Vice President Vance, Secretary Rubio, the American Embassy in Seoul, and over fifty bipartisan members of Congress have urged South Korea to reconsider its stance on Coupang. Unfortunately, South Korea has largely ignored these pleas.

This represents a serious miscalculation. South Korea relies on the U.S. for national security and benefits immensely from access to the American market—selling semiconductors, cars, appliances, and entertainment products.

For an alliance to thrive, there can’t be a double standard that favors Korean firms while penalizing American businesses. If South Korea wants the U.S. to maintain open markets for their conglomerates, they need to stop treating American tech companies like easy targets.

Ultimately, friendship in international relations demands reciprocity.