The trouble began in 2025 when a former Coupang employee caused a data breach. Coupang apologized, and its CEO at the time, Park Dae-jun, resigned.
In December 2025, Harold Rogers took over as acting CEO. He told South Korean officials that the breach was smaller than first thought - "that the leak was limited in nature," as the company explained.
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But South Korea did not back off. Officials even threatened to bring criminal charges against the acting CEO.
In February 2026, the House Judiciary Committee - led by Ohio Republican Jim Jordan - opened its own investigation. By July 1, 2026, the committee released a report that painted a harsh picture.
The committee described South Korea's actions as part of a larger pattern. Demetrios Marantis, who once served as acting U.S. trade representative during the Obama administration, said other U.S. digital firms such as Google and Netflix have likewise encountered regulatory difficulties in South Korea.
But the treatment of Coupang stood out. "Korea has had a long history of discriminating against foreign companies, just generally, and being protectionist, and a little bit inward looking. But the situation with Coupang - I have never seen anything this intense. This much of a whole-of-government assault on one company," Marantis said.
One allegation stands out: the South Korean National Intelligence Service allegedly forced Coupang to retrieve a discarded laptop from a river in Shanghai, then lied about its role. The committee said this was part of a broader effort by foreign governments "to weaponize their laws and regulations in an effort to harm American companies and limit their ability to compete in the global economy."
The report also found that South Korean regulators gave Coupang "hostile regulatory treatment, unfair enforcement practices, and disproportionately large penalties not faced by their Korean competitors."
The 2012 U.S.-South Korea free trade agreement was renegotiated in 2025 under President Donald Trump. The committee argues that South Korea's treatment of Coupang "directly violates its recent trade agreement with the United States."
Coupang responded with a statement: "We regret the circumstances that led to the House Judiciary Committee's investigation and we remain 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."
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