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South Korea has forcefully pushed back against accusations made by the US House Judiciary Committee, which alleged systematic discrimination against American companies, with a specific focus on e-commerce leader Coupang. The Ministry of Foreign Affairs stated that the US report, which appears to heavily rely on Coupang’s perspective, contains factual inaccuracies.
A spokesperson for the ministry emphasized that all investigations and regulatory actions concerning Coupang have been conducted in strict accordance with Korean law and without any discriminatory practices. The government is committed to fostering a fair business environment for all companies operating within South Korea, regardless of their origin.
The US report, titled “Closed for Competition: South Korea’s Discriminatory Attacks on American-owned Businesses,” emerged from an inquiry into a Coupang data breach. It accused South Korea of employing tactics such as coercive investigations, overly burdensome regulations, and substantial fines to disadvantage US firms and protect domestic competitors. The report further claimed that Coupang faced a “whole-of-government assault” following the data breach, leading to unfounded accusations and public criticism.
Specific allegations included the National Intelligence Service (NIS) directing Coupang personnel to retrieve devices from China, only to later disavow involvement. Additionally, the report highlighted that Coupang’s interim CEO, Harold Rogers, is reportedly facing criminal charges due to the NIS’s refusal to acknowledge its role in the matter. The NIS has previously denied similar claims.
The US committee also criticized the Korea Fair Trade Commission for its aggressive stance towards American-owned businesses and accused Seoul of “weaponizing digital laws and regulations.” In response, South Korea has affirmed its intention to continue dialogue with US lawmakers and officials. The aim is to provide accurate information and ensure that this dispute does not adversely affect the broader strategic relationship between South Korea and the United States.
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