Coupang Investors South Korea ISDS Dispute Sparks Trade Tension Fears
U.S. investors of Coupang have filed an ISDS notice against the South Korean government. Explore the details behind the Coupang investors South Korea ISDS dispute.
Investors are suing, but the company is stepping back. A rare rift has opened between Coupang Inc. and its major U.S. backers. According to Yonhap, investment firms Greenoaks Capital Partners and Altimeter Capital Management have notified the Seoul government of their intent to initiate ISDS (Investor-State Dispute Settlement) arbitration, alleging discriminatory treatment. Surprisingly, Coupang itself says it's not involved in the legal maneuver.
The Legal Battle and Section 301: Coupang Investors South Korea ISDS
The friction stems from a large-scale data breach discovered in November 2025, which South Korean authorities believe affected 33.7 million customers. While Coupang maintains that only 3,000 accounts were compromised, regulators have launched intense probes. The investors, represented by Covington & Burling LLP, filed a petition with the USTR citing Section 301 of the Trade Act of 1974, calling the government's actions 'unreasonable' and 'discriminatory'.
The dispute has touched a nerve in South Korea. Local merchant federations and civic groups like PSPD have condemned the move, viewing it as an attempt to undermine national sovereignty. Coupang, founded by Bom Kim, generates roughly 90% of its revenue in the Korean market, making this legal escalation particularly sensitive for its domestic reputation.
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