U.S. House Report Accuses South Korea of Discriminating Against American Companies

The Republican members of the U.S. House Judiciary Committee have released a report characterizing the South Korean government's regulations on American companies, including Coupang, as discriminatory.
On July 1, the Republican side of the House Judiciary Committee published a 35-page interim report titled "Blocking Competition: South Korea's Discriminatory Attacks on American-Owned Businesses."
The report claims that South Korea has subjected American companies to coercive investigations, excessive regulations, and substantial fines.
It specifically criticizes the investigative methods and penalties imposed by South Korean regulatory agencies, including the Fair Trade Commission. The report highlights complaints from U.S. businesses about investigations initiated with insufficient evidence, as well as the use of search warrants, data requests, and the possibility of criminal charges as means of pressure on companies.
A significant portion of the report focuses on Coupang. It cites Coupang as a prime example of targeted regulation, asserting that the government's response following a data breach incident escalated into a "full-scale offensive." The report addresses investigations related to Coupang, data requests, executive accountability issues, and allegations of involvement by the National Intelligence Service.
The report characterizes the data breach at Coupang as an incident involving unauthorized access by a former employee. It emphasizes Coupang's claim that the South Korean government used this incident to criminalize the company and create a favorable environment for domestic competitors.
Additionally, it argues that regulatory pressures from South Korea have led to a decline in Coupang's stock price and harmed American investors, affecting U.S. companies that utilize the Coupang platform. The report cites external estimates suggesting that South Korea's discriminatory regulatory practices could result in significant losses for both economies.
Much of the report is based on testimonies and submitted materials from Coupang and U.S. business associations. It does not extensively address consumer harm in South Korea due to the data breach or concerns about data security, nor does it delve deeply into the sensitivity of issues related to China. This has raised expectations of controversy regarding the interpretation of South Korean investigations and consumer protection measures solely as discrimination against American companies.
This report comes as Coupang has been actively lobbying in Washington. With Congress now officially recognizing the Coupang issue as a case of discrimination against American businesses, the ongoing investigations into the data breach and platform regulations are likely to become significant factors in future Korea-U.S. trade negotiations.

* This article has been translated by AI.