Two U.S. investors in Coupang have criticized South Korea's probe into the company's data breach as discriminatory, requesting a U.S. government investigation and notifying Seoul of intent to pursue investor-state arbitration. The South Korean government denies any discrimination, insisting the actions follow the law. Civic groups condemned the investors' moves as a violation of sovereignty.
On January 22, 2026, Greenoaks Capital Partners and Altimeter Capital Management notified the South Korean government of their intent to pursue investor-state dispute settlement (ISDS) arbitration over the probe into Coupang. They plan to proceed under the Korea-U.S. Free Trade Agreement (KORUS FTA), with formal arbitration possible 90 days after the notice. The investors claim South Korea's response to the November 2025 data breach, affecting about 33.7 million customers, exceeds scrutiny of domestic and Chinese competitors. Coupang stated the perpetrator accessed only around 3,000 accounts, but authorities view it as a massive leak warranting investigation.
The investors requested the U.S. Trade Representative (USTR) to investigate Seoul's 'unreasonable and discriminatory' actions under Section 301 of the Trade Act of 1974 and impose trade remedies. They criticized increased audits and penalties from bodies like the Fair Trade Commission and National Tax Service as Coupang gained market share, calling them the most in Korean history, leading to billions in lost market capitalization borne by U.S. shareholders. 'These losses have been borne directly by U.S. shareholders -- including individual investors and institutional funds holding the retirement savings of millions of American workers,' they said in a joint statement.
South Korea's Ministry of Justice plans to form a response team with relevant agencies for a thorough legal review. Prime Minister Han Min-seok told U.S. lawmakers in Washington on January 23 that 'there is no discrimination against Coupang whatsoever,' drawing a parallel to the detention of South Korean workers in Georgia last September. The presidential office had previously cautioned against framing the probe as a U.S. trade dispute, noting the unprecedented scale of the data leak and compliance with laws.
Coupang distanced itself, denying involvement in the petition. Seoul-based People's Solidarity for Participatory Democracy (PSPD) issued a statement condemning the move: 'A U.S.-listed company, which generates the majority of its revenue in South Korea, failed to take even basic protection measures and leaked a massive amount of personal information of three quarters of the Korean population. Nevertheless, the American political and business communities have set out to apply diplomatic and trade pressure... It is not the basic attitude of a civilized nation.' An alliance of 135 civic and labor groups, including PSPD and the Korean Confederation of Trade Unions, plans a press conference outside the U.S. Embassy in Seoul on January 23 afternoon to denounce the investors. Founded by Korean-American Bom Kim, Coupang derives about 90 percent of its revenue from South Korea.
