Massive Customer Data Exposure Affects Tens of Millions A data breach disclosed late last year compromised personal information of roughly 34 million Coupang customers, with one civic group citing 33 million accounts that included names and phone numbers[1][2]. Coupang is a U.S.-listed e‑commerce firm founded by Korean‑American entrepreneur Bom Kim, but about 90 % of its revenue is generated in South Korea[2][4]. The scale of the leak is described by Korean authorities as unprecedented for the country’s digital sector[2].

Korean Authorities Launch Domestic Investigation Under Existing Laws Seoul’s regulators opened a probe into the breach, emphasizing that the inquiry follows Korean law and is a purely domestic matter, not a trade dispute[2][4]. The presidential office reiterated that the investigation should not be interpreted as a bilateral diplomatic issue and will continue to explain this stance to Washington[2]. Officials assert that the process is transparent and objective, aiming to enforce data‑privacy standards without invoking trade mechanisms[1].

Trade Minister Yeo Han‑koo Engages Washington to Defuse Trade Row South Korea’s trade minister, Yeo Han‑koo, traveled to Washington in mid‑January, meeting bipartisan lawmakers, U.S. Trade Representative Jamieson Greer, and several think‑tanks to convey that the probe is a legal, not commercial, matter[3][4]. He briefed senators Andy Kim, Bill Hagerty, Dave McCormick, Todd Young and representatives Adrian Smith and Darrell Issa, stressing compliance with Korean law and seeking to prevent the case from escalating into a trade conflict[3]. The outreach also covered broader non‑tariff barrier discussions tied to the U.S.–Korea trade agreement[4].

U.S. Lawmakers Accuse Seoul of Discriminatory Enforcement Several members of Congress, led by Rep. Adrian Smith, alleged that Korean regulators are targeting U.S. technology firms, labeling the Coupang investigation as aggressive and discriminatory[5][1]. Rep. Carol Miller added that recent Korean legislation, including revisions to the Information and Communications Network Act, reflects a pattern of stifling digital trade and a “witch hunt” against Coupang executives[5]. Policy experts testified that Korea’s investigative procedures lack due‑process safeguards, fueling U.S. concerns over fair treatment of American companies[5].

Both Sides Emphasize Need for Transparency and Fair Compensation The Korean American Public Action Committee urged Coupang to fully disclose the breach’s scope and provide substantive compensation to affected users, warning against political lobbying that could damage U.S.–Korea entrepreneurial ties[1]. Korean officials countered that the probe proceeds transparently under applicable laws, aiming to avoid any escalation into a trade dispute[2]. U.S. lawmakers, while criticizing the Korean investigation’s aggressiveness, also called for a balanced approach that protects consumer rights without jeopardizing bilateral relations[5].