The United States and South Korea are set to engage in a series of high-level diplomatic and trade discussions this week. South Korean Foreign Minister Park Jin may meet with U.S. Secretary of State Antony Blinken during the ASEAN-related Foreign Ministers' Meeting in the Philippines, while Minister of Trade, Industry and Energy Lee Chang-yang is scheduled to meet with U.S. Secretary of Commerce Gina Raimondo in Washington. With key issues such as U.S. investment, shipbuilding cooperation, nuclear collaboration, and security discussions on the agenda, the so-called 'Coupang issue' has emerged as a point of contention in U.S.-Korea relations.
The government's response principles must remain steadfast. Investigations and sanctions regarding Coupang's data breach incident will be conducted in accordance with South Korean law. The Ministry of Foreign Affairs has stated that all investigations and actions are being carried out legally and without discrimination. The 624.7 billion won fine imposed due to the data breach is a matter to be handled independently by relevant authorities under the law and is not subject to diplomatic compromise. This is a fundamental principle.
Companies operating in South Korea must adhere to domestic laws, regardless of their nationality or ownership structure. In a serious case where the personal information of over 30 million citizens has been compromised, applying different standards for investigation and sanctions simply because the company is listed on the U.S. stock market would undermine the rule of law and market fairness. There should be no exceptions for foreign companies based on diplomatic pressures while strict standards are applied to domestic firms.
Claims from the U.S. must be based on accurate facts. The U.S. House Judiciary Committee and the White House have suggested that the South Korean government is conducting discriminatory investigations against American companies. However, if the actions taken are in accordance with the Personal Information Protection Act and fair trade laws, it is not reasonable to conclude that this constitutes targeted investigations against U.S. companies. The U.S. has also conducted investigations and sanctions against companies that have experienced large-scale data breaches. Viewing the South Korean government's law enforcement as politically discriminatory lacks credibility.
However, maintaining principles and neglecting diplomatic management are separate issues. As U.S. Ambassador to South Korea Kwon Young-se noted, the Coupang issue has escalated beyond corporate concerns to become a matter of interest for the U.S. Congress and administration. With the upcoming U.S. midterm elections in November, political pressure to protect domestic companies may intensify. This underscores the need for the South Korean government to provide accurate information to the U.S. Congress and administration and to strengthen outreach to explain the non-discriminatory nature of its law enforcement.
More importantly, it is essential to manage the Coupang issue separately from other U.S.-Korea matters. Both countries face strategic challenges related to shipbuilding cooperation, U.S. investment, amendments to nuclear agreements, and discussions on the introduction of Korean-style nuclear submarines. A dispute involving a single company should not hinder broader security and industrial cooperation. If the U.S. attempts to leverage the Coupang issue in other negotiations, the South Korean government must establish clear principles for each issue and respond firmly.
Consistent internal responses from the government are also necessary. If the Ministry of Foreign Affairs, the Ministry of Trade, Industry and Energy, the Personal Information Protection Commission, and the Fair Trade Commission provide conflicting explanations, it could lead to unnecessary misunderstandings with the U.S. Given that the National Security Council includes trade and fair trade authorities, while ensuring the independence of law enforcement, external explanations and negotiation strategies must be carefully coordinated.
The solution to the Coupang issue does not lie in reducing fines or delaying investigations. It requires transparent enforcement of laws and procedures, providing objective data to the U.S., and managing the issue separately from other cooperation matters. Making concessions without principles sets a bad precedent, and a rigid response without communication harms national interests. The government must respond calmly to uphold both the rule of law and diplomacy, thereby reducing unnecessary friction in U.S.-Korea relations.
* This article has been translated by AI.
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