On July 1, the U.S. House Judiciary Committee released a report detailing how South Korean authorities have systematically discriminated against American companies, with Seattle-based e-commerce giant Coupang serving as a prime target.
The findings, based on an investigation launched in February, reveal regulatory overreach and politicized enforcement actions designed to hinder U.S. innovators while shielding domestic competitors.
Following a limited 2025 data breach involving non-sensitive information, South Korean authorities initiated an unprecedented government harassment campaign against Coupang. This included dozens of investigations from 11 agencies, thousands of document requests, excessive fines (including a record $410 million penalty last month), threats of business suspension, and pending criminal charges against the company’s American executives.
In another unusual move, the Korean National Intelligence Service compelled Coupang to launch a covert operation into China where scuba divers were sent into a Shanghai river to recover a laptop abandoned by an ex-employee linked to the data breach.
The committee concluded that these actions violated the 2025 Trump-Lee Joint “Fact Sheet” agreement, which committed Seoul to avoid discriminatory treatment of U.S. digital services.
This sustained pressure campaign has erased more than 40% of Coupang’s market value, undermining the company’s ability to invest and support thousands of U.S. sellers and small businesses reliant on its platform.
The pattern extends to other U.S. tech firms, including Meta, Apple, Google, and Netflix, which have faced fines, bans (such as Google Maps), and investigations into data practices and app-store policies.
Former acting U.S. Trade Representative Demetrios Marantis described this situation as “by far the worst” case of protectionism in decades.
The report elevates what might otherwise remain a bilateral trade issue to congressional oversight and potential legislation, signaling that Washington will not ignore actions undermining U.S. economic competitiveness or trade commitments.
The committee plans legislation to protect American companies from discriminatory foreign regulations.
