Coupang Investors File KORUS FTA Arbitration 2026 Over 'Discriminatory' Data Probe

Can a domestic regulatory probe trigger a full-scale trade war? According to Reuters, two major Coupang Inc. investors—Greenoaks and Altimeter—have officially requested a U.S. government investigation into South Korea's response to a massive data breach, filing arbitration claims under the KORUS FTA.

Coupang Investors KORUS FTA Arbitration 2026 Details

The investors allege "discriminatory treatment" by the South Korean government following a November 2025 data leak. They claim that Seoul launched an aggressive campaign against the U.S.-listed e-commerce giant, resulting in billions of dollars in losses. Consequently, they've asked the U.S. Trade Representative (USTR) to impose trade remedies, potentially including tariffs and sanctions, arguing the response exceeded normal regulatory bounds.

Seoul Defends Regulatory Sovereignty

South Korean authorities maintain that the investigation is a necessary legal response to the leakage of personal information affecting 34 million customers. Cheong Wa Dae stated on Sunday that the probe should not be interpreted as a trade row, emphasizing the "unprecedented" scale of the breach. Coupang, founded by Bom Kim, generates nearly 90% of its revenue in Korea, but its U.S. listing makes it a focal point for international investment protection disputes.