The Korea Herald | 12 February 2026
US investors escalate legal fight with Seoul over Coupang
by No Kyung-min
A growing group of US investors in Coupang Inc. are intensifying a legal dispute with the Korean government over what they call discriminatory action against the company following its massive data breach last year, adding to broader Korea-US tensions.
Abrams Capital, Durable Capital Partners and Foxhaven said Wednesday they have joined Greenoaks and Altimeter Capital in challenging Seoul through investor-state dispute settlement proceedings, alleging the Korean government made “defamatory claims” against Coupang, a US-listed company that disclosed a data breach in November affecting some 33.7 million users in Korea.
Greenoaks and Altimeter last month notified the Korean government of plans to pursue arbitration under the US-Korea Free Trade Agreement and also filed a petition with the US Trade Representative seeking an investigation into Korea under Section 301 of the Trade Act.
They alleged in a statement in January that regulatory pressure by the Korean government targeting Coupang “appears to far exceed the scrutiny imposed on domestic Korean and Chinese competitors.”
The investors argue that defamatory claims against Coupang have caused billions of dollars in losses for US shareholders, with the stock, trading at around $17 as of Thursday, down more than 30 percent since the data breach disclosure. Together, the five firms own about 6.26 percent of Coupang.
Seoul rejected the allegations, saying authorities acted lawfully in responding to the data breach and did not discriminate against US companies.
The Justice Ministry said it would handle the additional notices of intent to arbitrate through its interagency task force. A notice of intent does not constitute a formal claim, though arbitration proceedings can typically begin 90 days after submission.
The dispute has begun drawing attention in the US Congress, with the House Judiciary Committee issuing a subpoena to Coupang leadership to provide testimony later this month as part of a probe examining whether foreign enforcement actions are being used to unfairly target US companies abroad.
"Coupang will fully cooperate with the US House Judiciary Committee investigation, including production of documents and witness testimony as required by the subpoena," the company said in a statement.
Some market participants believe the case could have broader implications for US venture-backed companies such as Viva Republica, operator of financial technology app Toss, which is preparing for a potential US listing. Any US debut could be delayed until regulatory risks exposed by the Coupang controversy are resolved, they said.
