A key figure in the Donald Trump administration sharply criticized moves by Korea's National Assembly and the Fair Trade Commission to regulate Coupang. The warning is that discriminatory measures against its own corporations could undermine President Trump's efforts to balance U.S.-Korea trade. As the Korean government responds to the massive leak of Coupang customer data, the issue shows signs of escalating into a trade dispute between the United States and Korea.
Robert O'Brien, former national security adviser who served as security chief in Trump's first term, said on the 23rd (local time) on his X account that Korea's National Assembly is aggressively targeting Coupang. O'Brien said, "President Donald Trump made great efforts to restore balance in the trade relationship with Korea," adding, "It would be very unfortunate if Korea undermines these efforts by targeting U.S. technology corporations."
He predicted that the National Assembly's moves would serve as a springboard for the Fair Trade Commission's discriminatory measures and the construction of broad regulatory barriers against U.S. corporations. He added, "A strong and consistent U.S. response is essential to ensure that U.S. corporations receive fair treatment and to maintain a strategic balance against the growing influence of China's economy in the sector." The remarks effectively called for a direct response at the Trump administration level.
Experts analyze that O'Brien's remarks go beyond a mere personal opinion and reflect the broader view within the Trump administration. The U.S. policy community appears to view the Coupang episode as an unfair regulation of its big tech corporations.
Coupang generates most of its revenue in Korea, but it is a U.S. company in which Coupang Inc., a New York Stock Exchange–listed entity registered in Delaware, owns 100% equity of the Korean subsidiary. Coupang has conducted active government relations outreach targeting U.S. politicians. Coupang Inc. donated $1 million to President Trump's inauguration in January. Over the past five years, it has spent a total of $10.39 million (about 15 billion won) on lobbying in the United States.
Voices pressuring the Korean government are also emerging in U.S. politics. Republican Rep. Darrell Issa warned at a House hearing on the 16th that "actions by Korea's National Assembly to harass U.S. corporations could result in serious diplomatic and economic consequences." Some U.S. outlets reported a critical tone, saying that ruling and opposition lawmakers at Korea's National Assembly hearing hurled personal insults at Harold Rogers, Coupang's acting CEO.
In fact, fissures are being detected between the two countries over digital regulation. The annual U.S.-Korea Free Trade Agreement (FTA) Joint Committee meeting, scheduled to be held in the United States this month, was abruptly canceled. Industry observers say differences in views over digital regulations led to the cancellation. Jamieson Greer, the incoming U.S. trade chief at the Office of the U.S. Trade Representative (USTR), is also known to believe that Korean competition authorities treat U.S. corporations unfairly.
The Korea Fair Trade Commission (FTC) has taken a hard-line stance over the leak of 33.7 million Coupang customer records, even mentioning the possibility of a business suspension. But the U.S. side suspects that the Korean government is trying to create a favorable environment for Chinese corporations through measures such as online platform bills. This is why some say the government should manage the situation in advance at the trade and competition authority levels to prevent it from escalating into a diplomatic and trade conflict.
The Korean government says the U.S.-Korea FTA Joint Committee was not canceled but postponed, and that it is continuing constructive consultations to hold it in early next year. However, with the hard-line mood in the United States confirmed, tensions between the United States and Korea over regulation of U.S. tech corporations, including Coupang, are expected to intensify further.