Coupang Investors Push for U.S. Probe Over South Korea’s Response to Data Leak

Two major U.S. investors in Coupang Inc. say they are asking the U.S. government to investigate South Korea’s handling of a massive data breach at the e-commerce giant, arguing that Seoul’s response has unfairly targeted the company and harmed shareholders.

Tech investment firms Greenoaks and Altimeter said on Thursday that they have petitioned the U.S. Trade Representative (USTR) to review South Korea’s actions and consider trade remedies, including possible tariffs or sanctions. The investors also filed arbitration claims under the U.S.–Korea Free Trade Agreement (KORUS), accusing South Korean authorities of discriminatory treatment following the breach.

The dispute stems from Coupang’s disclosure in November that personal data belonging to roughly 33 million South Korean customers had been compromised. The incident sparked public outrage and political pressure, leading to broad government investigations and lawsuits from both consumers and investors. Coupang’s U.S.-listed shares have fallen about 27% since the disclosure.

According to the investors, South Korea’s response has gone far beyond standard regulatory enforcement. They allege a “whole-of-government” campaign against Coupang, including labor, financial, and customs investigations that they say are largely unrelated to the data breach itself.

“Our main concern is the scale and speed of the government’s response, which has led to significant damages and threatens the value of our investment,” said Marney Chee, a partner at Covington representing Greenoaks.

If the USTR moves forward, the issue could escalate from a corporate dispute into a broader trade conflict between the U.S. and South Korea. Under U.S. trade law, the agency has 45 days to decide whether to launch a formal investigation, a process that could involve public hearings and ultimately result in countermeasures against South Korean goods and services.

South Korean officials have pushed back against the allegations. President Lee Jae Myung said this week that South Korea is a sovereign nation and will address the issue fairly and according to the law. Trade Minister Yeo Han-koo also denied any discrimination against Coupang, saying U.S. officials had misunderstood the situation.

Yeo argued that the severity of the data leak and Coupang’s response justified the government’s actions and should not be linked to trade or diplomatic matters. “If a Korean company caused such a large-scale data breach in the U.S., the U.S. would naturally respond the same way,” he said.

The arbitration notice filed under KORUS triggers a 90-day consultation period before formal proceedings can begin. Greenoaks, founded by Coupang board member Neil Mehta, and related entities hold more than $1.4 billion worth of Coupang shares. The firm also partnered with Coupang in 2023 to acquire luxury fashion platform Farfetch in a $500 million deal.

For now, the case highlights growing tensions at the intersection of data privacy, regulation, and international trade an area likely to face even greater scrutiny as cross-border tech businesses continue to expand.