US Congressional Report Accuses South Korean Government of Discriminating Against US Companies such as Coupang

Source: Global Market Report

According to a report released by the U.S. House Judiciary Committee on Wednesday, the South Korean government has used its regulatory power to discriminate against American companies and has launched an unprecedented clampdown on the online retailer Coupang.

This report is the result of an investigation initiated by the Committee in February this year. The report focuses on the treatment Coupang (the largest e-commerce company in South Korea, headquartered in the U.S.) and other American companies have endured for decades.

The Committee, chaired by Republican Congressman Jim Jordan from Ohio, pointed out in the report: "South Korea’s behavior is part of a broader attempt by foreign governments to use their laws and regulations to harm American companies and limit their ability to compete in the global economy."

The Embassy of South Korea in the U.S. issued a statement on Wednesday on behalf of the Korean government, stating: "We regret the interim staff report released by the U.S. House Judiciary Committee, which appears to be primarily based on the one-sided allegations of Coupang, and we dispute several of the descriptions in the report."

The U.S. House Judiciary Committee stated in the report that Coupang has been subjected to discriminatory pressure by the South Korean government, which intensified after a disgruntled former employee leaked data in 2025.

The Korean government stated in its statement that the leak affected 37.55 million Korean users, but according to the Judiciary Committee’s report, the former employee only stored and retained information related to about 3,000 accounts.

According to the Judiciary Committee's report, in testimony provided to the Committee by Coupang’s Acting CEO Harold Rogers, the company informed Korean officials that month that the scale of the data leak was less than anticipated and "the nature of the leak was limited." Nevertheless, the Korean government initiated an operation against Coupang, which included dozens of investigations, thousands of document requests, massive fines, and threats of criminal charges against Rogers, who is a U.S. citizen.

According to the Committee, South Korea's actions against Coupang have led to more than a 40% decline in Coupang’s market value and may negatively impact its investors.

The report points out, "Korean regulatory agencies have consistently targeted Coupang, taking hostile regulatory measures, employing unfair enforcement practices, and imposing massive fines far exceeding those levied against their Korean competitors."

The U.S. House Judiciary Committee stated in the report that South Korea's actions against Coupang violate the Korea-U.S. trade agreement.

The report states: "The discriminatory treatment by South Korea against American companies is in direct violation of its recent trade agreements signed with the United States."