South Korean lawmakers condemn US pressure over Coupang probe

SEOUL – South Korean lawmakers protested against what they described as US political pressure over a legal case involving Coupang, with about 90 legislators planning to deliver a formal complaint to the US ambassador.

Lawmakers, including Mr Park Hongbae from the ruling Democratic Party, said they would deliver a protest letter to the US envoy in Seoul, warning that attempts to influence legal proceedings in South Korea would amount to an infringement on judicial sovereignty.

“The investigation and adjudication of alleged criminal conduct are the exclusive authority of a sovereign state,” the lawmakers wrote in the letter on April 28, adding that such processes must be conducted “independently and free from external pressure”.

The statement follows reports that some members of the US House of Representatives raised concerns about the treatment and safety of Coupang executives and linked the issue to broader diplomatic and security cooperation between the two countries.

The e-commerce giant is based in the US and is widely popular in South Korea.

South Korean lawmakers said any attempt to link a corporate executive’s legal case to bilateral ties risks undermining trust in the alliance and could set a precedent for multinational companies to seek diplomatic leverage in domestic legal matters.

The moves mark the latest escalation in a months-long dispute that has expanded beyond a corporate investigation into a broader friction point in relations between Washington and Seoul, particularly over digital regulation and market access.

In January, US-based investor Greenoaks Capital Partners urged the Office of the US Trade Representative to open a probe under Section 301 of the Trade Act, alleging South Korean authorities unfairly targeted Coupang following a data-breach incident. The firm also signalled plans to pursue arbitration under the bilateral free trade agreement.

Section 301 allows Washington to investigate and respond to what it deems unfair trade practices, including through tariffs, making it a powerful tool that can spill into broader economic relations.

While Greenoaks and another investor, Altimeter Capital, withdrew their petition in March, they said the issue had already prompted “meaningful engagement” between the two governments and continued to raise concerns among US lawmakers.

The US side has maintained that South Korea should ensure non-discriminatory treatment of American digital firms, with USTR signaling it may pursue broader action addressing barriers faced by US technology companies.

South Korean officials, for their part, have said the probe into Coupang stems from a data breach and is being handled in accordance with domestic law, cautioning against expanding the issue into a trade or diplomatic dispute.

“No individual or corporation can stand above or outside its legal system,” the letter to the US envoy said. BLOOMBERG