Washington: South Korea and the United States share the understanding that they should "stably" manage a thorny issue involving U.S.-listed e-commerce giant Coupang Inc. in a way that does not "burden" bilateral relations, Seoul's top envoy to Washington said Wednesday. Ambassador Kang Kyung-wha made the remarks at a press briefing, after a House Judiciary Committee report and a White House official recently criticized South Korea's regulatory probes into Coupang's massive data leak in the Asian country as "discriminatory."
According to Yonhap News Agency, the House Judiciary Committee issued an interim staff report accusing the South Korean government of "discriminatory attacks" on Coupang and other American-owned businesses, claiming that Coupang has been its "consistent target." Following the committee report, a White House official said Coupang is being "singled out" by South Korean President Lee Jae Myung's administration, expressing concern over what he called "discriminatory" targeting of the company.
Seoul's foreign ministry expressed regret over the committee report, stating it appears to reflect Coupang's claims in a "one-sided" manner and fails to include Seoul's position and the "factual information" it has offered to the committee. Ambassador Kang emphasized the importance of continued consultations with the U.S. side to explain South Korea's position and manage the issue without straining relations between the two countries.
Commenting on U.S. trade investigations under Section 301 of the 1974 Trade Act, which could result in new tariffs on South Korea and other countries, Kang said her embassy will continue close consultations with the U.S. to minimize any potential negative impact. The Office of the U.S. Trade Representative has conducted Section 301 trade investigations into 60 countries over forced labor concerns, proposing 12.5 percent tariffs on South Korea and other economies.
Section 301 allows the USTR to investigate unfair foreign trade practices on a country-by-country basis. The investigations were launched in March as the administration is pushing to replace the invalidated country-specific "reciprocal" tariffs struck down by the Supreme Court in February.