The U.S. House Judiciary Committee released a report titled Closed for Competition accusing South Korean authorities of discriminatory practices. The report claims South Korea uses coercive investigations, burdensome regulations, and massive fines to disadvantage American-owned businesses like Coupang.
These actions allegedly protect domestic rivals and violate the Korea-U.S. trade agreement. The committee states the regulatory campaign intensified following a data breach at the e-commerce giant.
The report asserts these practices contributed to a 40% decline in Coupang’s market capitalization. This loss has directly harmed American investors.
South Korea’s foreign ministry rejected the allegations as one-sided. Officials maintain that all regulatory actions are lawful and applied without discrimination.