US House committee says South Korea discriminated against Coupang

South Korean authorities have consistently discriminated against U.S.-based Coupang, ‌a campaign that escalated with numerous investigations after a data breach at the e-commerce firm last year, the U.S. House Judiciary Committee said in an interim report.

Those actions were part of long-standing economic discrimination against U.S. and other foreign companies, the report said, adding ​that such discrimination “directly violates” a recent bilateral trade agreement.

South Korean foreign ministry spokesperson Park Il said the report ​was one-sided, reflecting only claims by Coupang despite the government communicating with the committee for months. ⁠Allegations of discrimination against Coupang and other U.S. companies were untrue, he added.

Coupang, the ​biggest online retailer in South Korea but based in Seattle, became the target of much regulatory scrutiny and public ire ​last year after news of the breach became known.

A former employee was able to access customer information associated with as many as 33.7 million accounts. Coupang later said the person only stored and retained information relating to about 3,000 accounts.

The NIS denied in December that it had directed Coupang’s investigation ​or recovery efforts, saying it had only requested materials from the company. Democratic Party ​lawmaker Park Sun-won, ⁠a member of South Korea’s National Assembly Intelligence Committee, also said on Thursday that there had been “absolutely” no coercion.

The presidential Blue House did not have an immediate response.
Coupang said in a statement that it regretted the circumstances that led to the ⁠House Judiciary ​Committee’s investigation.

It is “committed to finding a constructive resolution so Coupang can once ​again serve as a bridge to strengthen the U.S.-Korea alliance, accelerating trade and investment that benefits both countries,” the company said.