Seoul: The ruling Democratic Party (DP) expressed "strong regret" over a U.S. congressional report accusing South Korea of discriminating against Coupang and other American companies. The report also criticized Coupang's handling of a significant data breach.
According to Yonhap News Agency, an interim staff report by the U.S. House Judiciary Committee claimed that Coupang has been a "consistent target" of the Seoul government. It alleged that South Korea imposed "coercive investigations, overly burdensome regulatory requirements, and excessive fines and penalties" on U.S.-owned firms.
Party spokesperson Jang Yoon-mi stated that the report misrepresented the South Korean government's stance, relying on unilateral claims by Coupang and unverified data. The Democratic Party emphasized that the Seoul government does not discriminate against companies based on nationality and urged Coupang to refrain from blaming the government for its issues.
The spokesperson further criticized Coupang for remaining silent on its data breach while attempting to portray itself as a victim. The company has been under scrutiny for a data leak affecting over 33 million users in South Korea.
The National Assembly, the presidential office, and the foreign ministry also expressed their regret over the report. They stressed that investigations and regulatory actions regarding the data leak were conducted fairly.
Concerns persist that Coupang's extensive lobbying in the U.S. could affect relations between the allies. Lobbying Disclosure Act reports revealed that since November, the company spent over $1 million on lobbying activities in Washington, D.C., involving the White House and Congress, following the data leak scandal.
Source: Yonhap News Agency