Coupang ISDS Investor Dispute 2026: U.S. Investors Notify Korea of Intent to Arbitrate

They're calling it "weaponizing the administrative power of the state." What began as a domestic probe into a data breach has escalated into a high-stakes international legal battle as Coupang’s major U.S. investors threaten the South Korean government with arbitration.

Coupang ISDS Investor Dispute 2026: Claims of Hostile Interference

On January 22, 2026, Greenoaks Capital Partners and Altimeter Capital Management formally notified South Korea of their intent to file arbitration claims under the KORUS FTA. The investors, who hold equity interests valued at more than $1.5 billion, allege that Seoul’s regulatory pressure following a November data leak is both "discriminatory" and "unreasonable."

According to documents submitted by legal representative Covington & Burling LLP, the investors claim the South Korean government has launched hundreds of audits and raids against Coupang to benefit domestic and Chinese competitors. They specifically pointed to Prime Minister Kim Min-seok’s directive to regulators to pursue the company "with the same determination used to wipe out mafias."

Section 301 and the Push for U.S. Intervention

Beyond the ISDS notice, the investors have requested the Office of the U.S. Trade Representative (USTR) to launch a probe under Section 301 of the Trade Act of 1974. They argue that the targeted interference has resulted in billions of dollars in lost market capitalization, directly impacting American workers' retirement savings held in institutional funds.

The South Korean government remains firm, stating the probe into the leak of 33.7 million customers' data is a legitimate legal action. Coupang, however, disputes the scale of the breach, claiming only 3,000 accounts were actually compromised.