Seoul: The foreign ministry of South Korea expressed regret on Thursday regarding a U.S. House Judiciary Committee report that accused the country of discriminatory actions against the e-commerce giant Coupang Inc. and other American firms. The report alleged that Seoul has been targeting U.S.-owned companies with coercive investigations and stringent regulatory requirements.
According to Yonhap News Agency, the interim staff report released on Wednesday stated that Coupang has been consistently targeted by the South Korean government, with claims that U.S.-owned firms have faced excessive fines and penalties in favor of domestic companies. Ministry spokesperson Park Il highlighted in a press briefing that the report appears to be one-sided, reflecting only Coupang's claims without considering the South Korean government's position and factual information provided to the committee.
Park emphasized that all investigations and regulatory measures concerning Coupang have been conducted lawfully under South Korean law and implemented fairly, irrespective of the firms' nationalities. Additionally, the National Intelligence Service (NIS) contested the claims made by Coupang in the report, describing them as outright falsehoods.
The NIS released a statement indicating that the report contained misinformation and noted that it had cooperated with Coupang to gather relevant information and prevent further damage under Article 4 of the National Intelligence Service Act. This act classifies large-scale data leaks involving foreign nationals as national security matters.
Coupang has been under public scrutiny and investigation in South Korea following a massive data leak affecting over 33 million users. The contentious report has heightened concerns about the potential impact on the broader Korea-U.S. alliance, with officials acknowledging that the issue contributed to delays in bilateral security consultations.
These consultations, initially expected earlier this year, were part of the Korea-U.S. joint fact sheet following a summit between President Lee Jae Myung and U.S. President Donald Trump in October. They focused on South Korea's efforts to acquire a nuclear-powered submarine and secure capabilities for civil uranium enrichment and spent nuclear fuel reprocessing. However, they were only held last month.
Park reassured that the South Korean government would continue discussions with the U.S. to ensure that the Coupang issue does not adversely affect security talks between the two nations. Officials did not rule out the possibility of additional reports or congressional hearings, as the document is an interim staff report. The government plans to persist in outreach efforts to clarify Seoul's stance on the matter.
Seoul and Washington are also preparing for a second round of security consultations scheduled later this month.